# Key Point #2

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**Key Point #2: The 1:0.5 ratio**
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If, for example, you plan to deploy $100k USD on an FXPool, we recommend having $50k USD of external liquidity elsewhere to ensure that as the FXPool trades towards the end of the beta region, arbitrageurs will have a venue to bring the FXPool back or closer to the 50:50 LP ratio.&#x20;

Examples (with FX rates at time of writing):

| FXPool TVL                | External Pool TVL                                                            | Good for Organic Trading                                                                                                                                                                                                      |
| ------------------------- | ---------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| 50k USDC and \~68k XSGD   | <p>25k USDC and \~34k XSGD<br>or <br>25k USD worth of ETH and \~34k XSGD</p> | :white\_check\_mark:                                                                                                                                                                                                          |
| 10k USDC and \~9.4k EUROC | <p>5k USDC and \~4.7k EURC<br>or<br>5k USD worth of ETH and \~4.7k EURC</p>  | :white\_check\_mark:                                                                                                                                                                                                          |
| 5k USDC and \~4.7k EUROC  | <p>10k USDC and \~9.4k EURC<br>or<br>10k USD of ETH and \~9.4k EURC</p>      | <p><span data-gb-custom-inline data-tag="emoji" data-code="2705">✅</span> <br><br>because the external pool should be at least 50% of the FXPool</p>                                                                          |
| 50k USDC and \~68k XSGD   | <p>1k USDC and \~1.36k XSGD<br>or<br>1k USD of ETH and \~1.36k XSGD</p>      | <p><span data-gb-custom-inline data-tag="emoji" data-code="274c">❌</span><br>because there isn't enough external liquidity to rebalance the FXPool once it crosses the beta region (25:75 or 75:25 in current parameters)</p> |

* $100k USD on a XSGD:USDC FXPool
* $50k USD on an XSGD:USDC Uni v3 or Curve pool (whether paired against stablecoins or volatile tokens)
