> For the complete documentation index, see [llms.txt](https://docs.wagmi.com/wagmi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wagmi.com/wagmi/protocol-mechanics/v3-liquidity-pools/unsupported-token-types.md).

# Unsupported token types

As we strive to offer a robust and efficient trading environment through our v3 liquidity pools, it's important for our users to be aware of specific types of tokens that are currently not supported. This ensures a seamless experience and protects the integrity of the liquidity pools. The following types of tokens are not supported in v3 liquidity pools:

**Fee-on-transfer tokens** 

**Rebase tokens**

**Unsupported Tokens in v3 Liquidity Pools**

* **Fee-on-Transfer Tokens:** These are tokens designed to apply a transaction fee each time they are transferred from one wallet to another. The fee is typically used for various purposes, such as rewarding holders or funding project development. However, the mechanics of fee-on-transfer tokens can interfere with the liquidity pool's functionality, leading to imbalances and inefficiencies in price calculations.
* **Rebase Tokens:** Rebase tokens, also known as elastic supply tokens, adjust their total circulating supply periodically based on specific criteria set by their protocol. This adjustment is reflected directly in the wallet balances of token holders. The dynamic nature of these tokens' supply makes it challenging to maintain stable liquidity in a pool, as the value and supply of these tokens can change dramatically in a short period, affecting the pool's stability and predictability.

For the above reasons, our v3 liquidity pools do not currently support fee-on-transfer or rebase tokens. This helps maintain the efficiency and reliability of our trading ecosystem, ensuring a better experience for all participants.


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