> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sherwood.sh/llms.txt
> Use this file to discover all available pages before exploring further.

# Aerodrome LP

> Provide liquidity on Aerodrome with optional gauge staking for AERO rewards

<Note>Not yet available on Robinhood testnet (chain 46630), Sherwood's current deployment target. This strategy will come online as Sherwood expands to more chains.</Note>

The `AerodromeLPStrategy` provides liquidity to an Aerodrome pool and optionally stakes the LP tokens in a gauge to earn AERO rewards. On settlement, it unstakes, claims rewards, removes liquidity, and pushes all tokens back to the vault.

## Architecture

```mermaid theme={null}
graph TD
    V["Vault (holds tokenA + tokenB)"] -->|"execute: pull tokens"| S["AerodromeLPStrategy clone"]
    S -->|"addLiquidity"| R["Aerodrome Router"]
    R -->|"LP tokens"| S
    S -->|"stake LP"| G["Aerodrome Gauge"]
    G -->|"earns AERO over time"| G

    subgraph Settlement
        G -->|"withdraw LP + claim AERO"| S2["Strategy clone"]
        S2 -->|"removeLiquidity"| R2["Aerodrome Router"]
        R2 -->|"tokenA + tokenB"| S2
        S2 -->|"push all tokens + AERO"| V2["Vault"]
    end
```

## Stable vs Volatile Pools

<CardGroup cols={2}>
  <Card title="Stable Pool" icon="equals">
    For correlated assets (e.g., USDC/USDbC). Uses the `stable = true` flag. Lower fees, tighter curve.
  </Card>

  <Card title="Volatile Pool" icon="chart-line">
    For uncorrelated assets (e.g., USDC/WETH). Uses `stable = false`. Standard AMM curve.
  </Card>
</CardGroup>

## Lifecycle

```
Pending → execute() → Executed → settle() → Settled
```

| Phase        | What happens                                                  | Who calls                      |
| ------------ | ------------------------------------------------------------- | ------------------------------ |
| **Execute**  | Pull tokenA + tokenB → addLiquidity → stake LP in gauge       | Governor (proposal execution)  |
| **Executed** | LP earns trading fees; gauge earns AERO rewards               | —                              |
| **Settle**   | Unstake LP → claim AERO → removeLiquidity → push all to vault | Governor (proposal settlement) |

<Info>
  Any dust (unused tokens from addLiquidity) is returned to the vault immediately during execution.
</Info>

## Batch Calls

### Execute

```
[tokenA.approve(strategy, amountA), tokenB.approve(strategy, amountB), strategy.execute()]
```

### Settle

```
[strategy.settle()]
```

Settlement pushes three types of tokens to the vault: tokenA, tokenB (from removed liquidity), and AERO (gauge rewards).

## Gauge Staking

Gauge staking is optional. Pass `--gauge <address>` to enable it.

* If a gauge is set, the strategy stakes all LP tokens after adding liquidity
* On settlement, LP is withdrawn from the gauge and AERO rewards are claimed
* The gauge's `stakingToken` must match the `lpToken` address (validated at initialization)
* If no gauge is set, LP tokens sit in the strategy clone (earning trading fees only)

## InitParams

```solidity theme={null}
struct InitParams {
    address tokenA;         // First token in the pair
    address tokenB;         // Second token in the pair
    bool stable;            // true = stable pool, false = volatile
    address factory;        // Aerodrome pool factory
    address router;         // Aerodrome Router
    address gauge;          // Gauge address (address(0) to skip staking)
    address lpToken;        // Pool LP token address
    uint256 amountADesired; // tokenA to provide
    uint256 amountBDesired; // tokenB to provide
    uint256 amountAMin;     // Min tokenA on addLiquidity (slippage)
    uint256 amountBMin;     // Min tokenB on addLiquidity (slippage)
    uint256 minAmountAOut;  // Min tokenA on removeLiquidity (slippage)
    uint256 minAmountBOut;  // Min tokenB on removeLiquidity (slippage)
}
```

## CLI Usage

```bash theme={null}
sherwood strategy propose aerodrome-lp \
  --vault 0x... \
  --token-a 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913 \
  --token-b 0x4200000000000000000000000000000000000006 \
  --amount-a 500 --amount-b 0.2 \
  --gauge 0x... --lp-token 0x... \
  --min-a-out 490 --min-b-out 0.19 \
  --name "USDC/WETH Aerodrome LP" \
  --duration 14d
```

| Flag                   | Description                      | Default                           |
| ---------------------- | -------------------------------- | --------------------------------- |
| `--token-a <address>`  | Token A address                  | required                          |
| `--token-b <address>`  | Token B address                  | required                          |
| `--amount-a <n>`       | Token A amount                   | required                          |
| `--amount-b <n>`       | Token B amount                   | required                          |
| `--stable`             | Stable pool (correlated assets)  | false                             |
| `--gauge <address>`    | Gauge for AERO rewards           | none                              |
| `--lp-token <address>` | LP token address                 | required                          |
| `--min-a-out <n>`      | Min token A on settle (slippage) | at least one of the pair required |
| `--min-b-out <n>`      | Min token B on settle (slippage) | at least one of the pair required |

<Warning>
  Slippage minimums are mandatory. Initialization reverts with `InvalidAmount` if **both** settle-side mins (`minAmountAOut` / `minAmountBOut`) are 0, and likewise if **both** add-side mins (`amountAMin` / `amountBMin`) are 0. At least one of each pair must be non-zero so `addLiquidity` / `removeLiquidity` are sandwich-resistant.
</Warning>

## Tunable Parameters

While in `Executed` state, the proposer can update settlement slippage:

| Parameter       | Description                       |
| --------------- | --------------------------------- |
| `minAmountAOut` | Minimum tokenA on removeLiquidity |
| `minAmountBOut` | Minimum tokenB on removeLiquidity |

```solidity theme={null}
strategy.updateParams(abi.encode(newMinAmountAOut, newMinAmountBOut));
// Pass 0 to keep current value
```

## Live NAV

The strategy never self-reports a value. It reports one position of kind `AERODROME_LP` (venue + kind + locator) via `positions()`, and an `AerodromeLPAdapter` — pricing the LP via the pool's native `quote()` TWAP with a recency check and a spot/TWAP deviation guard — is **built and tested** for the governance-owned `PriceRouter`.

However, Lane A is **not yet enabled** for `AERODROME_LP` (`laneAEnabled[AERODROME_LP] = false`, pending audit). Until governance enables it, this strategy is **Lane B only**: while an Aerodrome proposal is active, LP entry / exit goes through the **async queue** (`VaultWithdrawalQueue`) and settles at the frozen per-proposal price. Once the kind is enabled, instant Lane A pricing applies.

See [Deposits & Withdrawals](/protocol/vault-liquidity) for the full two-lane mechanics.

## Addresses (Base reference)

| Contract                     | Address                                      |
| ---------------------------- | -------------------------------------------- |
| AerodromeLPStrategy template | `0x6fba9a6D3F40AA1848Ad196564B27a430D29FdB0` |
| Aerodrome Router             | `0xcF77a3Ba9A5CA399B7c97c74d54e5b1Beb874E43` |
| Aerodrome Default Factory    | `0x420DD381b31aEf6683db6B902084cB0FFECe40Da` |
| AERO Token                   | `0x940181a94A35A4569E4529A3CDfB74e38FD98631` |

<Warning>
  If the vault only holds one asset (e.g., USDC), the agent should add a swap call before the strategy in the execute batch to acquire the second token.
</Warning>