# How RFQ Liquidity and On-Chain Stock Pools Work Together

*Learn how an issuer RFQ helps prepare a stock LP deposit, while an on-chain pool handles swaps and pays trading fees to active LPs.*

**Source URL:** https://degate.com/guides/stocks/liquidity/how-rfq-liquidity-and-on-chain-stock-pools-work-together/
**Last verified:** 2026-10-19
**Guide type:** task

**Quick answer:** Learn how an issuer RFQ helps prepare a stock LP deposit, while an on-chain pool handles swaps and pays trading fees to active LPs.

**Questions this guide answers:**
- RFQ liquidity for tokenized stocks
- RFQ vs AMM
- tokenized stock pool liquidity

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An Ondo stock token may not have a deep trading pool when it first comes on-chain. A user who wants to provide liquidity may hold only USDC. Without an existing pool, that user cannot rely on the same pool to buy the stock tokens needed for the first position.

Turbo Range connects the conversion and LP deposit in one flow. When the user enters only USDC, the system calculates how much stock token and USDC the selected range needs. A solver partner integrated with DeGate can request an Ondo RFQ for the amount that needs to be converted, swap part of the USDC into the stock token, and deposit both assets into the stock/USDC pool.

The RFQ route and the stock pool appear at different points in this process. The quote helps the user obtain the stock tokens needed to open the position. After the assets enter the pool, LP fees come from swaps made by traders through that pool. The table below shows where the funds and prices come from at each step.

## From conversion to deposit

| Part of the flow | RFQ from the issuer route | Stock/USDC liquidity pool |
| --- | --- | --- |
| Where the price comes from | A quote for the asset and amount requested at that moment | The current price formed by swaps against assets in the pool |
| What it helps you do | Buy or sell the stock token needed by the product flow | Let traders exchange the stock token and USDC on-chain |
| Where the available amount comes from | The issuer route and its access to the corresponding US stock market | Assets deposited by LPs inside active price ranges |
| Who receives a fee | The quote may include a spread or other trading cost | Active LP positions receive their share of the pool's swap fee |
| Does it create LP income? | No | Only swaps through the pool can add LP fees |

Ondo documents separate display prices and trade quotes. A display price can help you understand the asset, but a quote answers a more useful question: how much stock token will this amount of USDC buy now?

For an eligible Ondo route, a solver partner integrated with DeGate can request that quote through Ondo's official API. The quote refers to the pricing and available liquidity of the corresponding stock in the traditional US market. In practical terms, the user does not have to rely only on the money already sitting in one on-chain pool to obtain the token.

## Follow one USDC-only deposit

Suppose you want to open an AAPLon/USDC position and currently hold USDC but no AAPLon.

1. You choose the AAPLon/USDC pool, fee tier, and price range in Turbo Range.
2. You select `USDC Only` and enter the amount of USDC.
3. The product calculates how much AAPLon and USDC the position needs at the current price and within your chosen range.
4. When the route is available, DeGate's solver partner requests an Ondo quote for the AAPLon portion. The input screen shows the conversion under `Auto-swap via U.S. stock market`.
5. The `Review Investment` screen shows the original input under `Your investment`. When an auto-swap occurs, `After auto-swap` lists the resulting AAPLon and USDC amounts.
6. After you confirm, the stock token and USDC enter the pool as your liquidity position.

The RFQ work ends after the required conversion. From that point, traders must use the on-chain pool for the position to collect LP fees.

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  ![TSLAon opening setup with 30 USDC, the estimated auto-swap, and maximum network fee](https://degate.com/guides/images/stocks/turbo-range-20261019-usdc-opening-swap.png)

*With USDC Only selected and 30 USDC entered, the preview shows the stock-token conversion needed for this range. Snapshot as of October 19, 2026.*
  ![DeGate Turbo Range explanation of the U.S. stock market auto-swap](https://degate.com/guides/images/stocks/turbo-range-v2-auto-swap-help.png)

*The help text explains that excess input is converted to match the pool's required ratio. Snapshot as of September 30, 2026.*

![TSLAon Review Investment with 30 USDC input, After auto-swap quantities, range, and maximum network fee](https://degate.com/guides/images/stocks/turbo-range-20261019-opening-review.png)

*Review Investment shows the original 30 USDC input and the estimated TSLAon and USDC amounts after auto-swap. Snapshot as of October 19, 2026.*

## Two-sided funding may need no RFQ

If you already hold both AAPLon and USDC in the ratio required by the pool, a two-sided deposit can place those assets into the position without an automatic conversion.

An RFQ may still be needed when one side exceeds the required ratio. The product can convert the excess so that the final amounts fit the range you selected. You can also reduce the deposit from the larger side, use the other balance as the limit, and leave the unused assets in your wallet. The preview should show whether the deposit needs a conversion before you confirm.

This distinction matters during a temporary quote interruption. A two-sided input that already matches the required ratio may proceed without an auto-swap when the preview remains executable. If the ratio does not fit, you can reduce the larger side and leave the unused assets in your wallet. A one-sided input has to wait when it needs a quote to prepare the stock-token side.

## Pool initialization also needs a starting price

A pool with completed trades has an on-chain price. When the required pool needs initialization, there is no earlier swap to provide one.

Turbo Range uses current Ondo quote data as the outside reference when the required stock/USDC pool needs initialization. The system checks the opening price against the current issuer quote as part of the same position flow. The user does not choose a separate creation branch.

The opening position still supplies the pool's initial assets. The RFQ does not provide that liquidity on the user's behalf. It helps prepare the assets and gives the product a current price reference.

## What happens after the pool opens

Once the position is live, the pool follows its on-chain rules:

- A trader buys the stock token with USDC, so the active LP positions move toward more USDC.
- A trader sells the stock token, so the positions move toward more stock tokens.
- Each pool swap pays the selected fee tier. Active LPs receive a share based on the liquidity they provided at that price.

Traders may compare the pool price with an Ondo quote and trade when the difference covers their costs. Their activity can move the pool price closer to the outside market. It is still their decision to trade, so an RFQ connection cannot promise that the pool will stay at the same price or produce a certain amount of fees.

## What changes when an RFQ is unavailable

Ondo can pause or limit quotes for a market closure, a company event, an asset-specific restriction, or an order limit. The effect in Turbo Range depends on whether your action needs a conversion or a fresh price reference.

| What you want to do | Current behavior when no usable RFQ is available |
| --- | --- |
| Open with USDC only | Wait, because the flow needs to prepare the stock-token side |
| Submit two assets that already match the required ratio | The position may proceed without an auto-swap when the preview remains executable |
| Submit a position that requires pool initialization | Wait, because the product needs a current outside price reference |
| Hold or close an existing position | The on-chain position still exists; closing returns the assets held by the position |
| Swap through an on-chain pool | The pool contract can still operate, although price differences and available depth may change |

If a quote is unavailable, check the message shown for the action you are taking. Actions that need a conversion or a fresh price reference may have to wait. Existing positions remain on-chain and can still be held or closed.

![DeGate Turbo Range message stating that U.S. stock market liquidity is unavailable for a required swap](https://degate.com/guides/images/stocks/turbo-range-v2-rfq-unavailable.png)

*When the investment requires a swap and U.S. stock market liquidity is unavailable, Turbo Range disables position creation and asks the user to try again later. Snapshot as of September 30, 2026.*

## Where DeGate fits

DeGate brings the two routes into one self-custody wallet flow. The user selects the stock token, prepares the required assets, opens the LP position, watches its range, claims fees, and closes from the same product. The product handles any required pool initialization inside that flow.

This setup is useful for Ondo assets that do not yet have a deep on-chain pool. The issuer quote can help the user obtain the stock token needed to start. The resulting on-chain pool can then build liquidity and a trading record as users begin to use it.

Continue with [How to Evaluate a Tokenized-Stock LP Before You Deposit](https://degate.com/guides/stocks/liquidity/how-to-evaluate-a-tokenized-stock-lp-before-you-deposit) or [How to Create a Liquidity Pool for a Tokenized Stock](https://degate.com/guides/stocks/liquidity/how-to-create-a-liquidity-pool-for-a-tokenized-stock).

## FAQ

### Is Ondo RFQ the same as the DeGate stock LP pool?

No. The RFQ gives a quote for a specific order through an issuer-connected route. The stock LP pool holds user-supplied assets on-chain and lets traders swap against them.

### Can I open a stock LP with USDC only?

Yes. If you hold USDC only, enter it on the Turbo Range setup page instead of buying the stock token on the Swap screen first. When a quote is available, the flow uses part of the USDC to prepare the stock token. The review shows the original input and the stock-token and USDC amounts after the auto-swap.

### Does an existing pool stop when the US stock market closes?

The on-chain pool contract can continue to operate. Issuer quotes, outside price discovery, and trading behavior may change during closures or asset pauses, so review the current pool price and preview before acting.

## Sources

- [Ondo: Request a Soft Attestation Quote](https://docs.ondo.finance/api-reference/attestations/request-a-soft-attestation-quote)
- [Ondo: Current Market Status](https://docs.ondo.finance/api-reference/status/get-current-market-status)
- [Ondo: Trading Limits](https://docs.ondo.finance/api-reference/limits/get-trading-limits)
- [Uniswap: Concentrated Liquidity](https://developers.uniswap.org/docs/get-started/concepts/liquidity-providers/concentrated-liquidity)
- [Uniswap: Fees](https://developers.uniswap.org/docs/get-started/concepts/fees)
- [DeGate: Turbo Range](https://docs.degate.com/about-degate/turbo-range)