# Liquidity pool

Eagle Protocol will deploy single-asset liquidity pools on each blockchain on which it operates. As no user assets are being burned and minted using bridges, the stablecoin liquidity pools act as a way for Eagle Protocol’s intrachain liquidity aggregator to quickly swap for the token of the users choice.

Eagle protocol will have a dynamic bridging fee model that incentivises automatic liquidity pool rebalancing. In this model, the transfer fee is determined by the pool's available liquidity and the supplied liquidity. If available liquidity in the pool is lower than the supplied Liquidity the transfer fee is higher than the normal transfer fee (stable fee), and if available liquidity is higher than the supplied liquidity then the transfer fee is lower than the stable fee. The higher transaction fees are used to incentivize cross-chain transfers from low liquidity pools to high liquidity pools, resulting in self rebalancing pools. Stablecoin liquidity pools are deployed on each chain and liquidity suppliers that provide liquidity to these pools and enjoy LP fees from user transfers
