add_liquidity · Paloma DEX MCP Server MCP: Risk & Policy

WHAT IT DOES

What add_liquidity does on Paloma DEX MCP Server

AI agents use add_liquidity to commit financial operations through Paloma DEX MCP Server — usually the final step of a payment, billing, or trading workflow. A call moves real money.

WHY IT NEEDS A POLICY

Why add_liquidity needs a policy

Adding liquidity to a DEX pool commits real financial assets (tokens) to a liquidity pool, representing a financial obligation/commitment. While the description is empty (lowering confidence), the server context (DEX trading, EVM chains) and sibling tools strongly imply this tool deposits tokens into a liquidity pool — a financial action. Financial is more severe than Write or Execute.

From the tool's definition Tool name 'add_liquidity' on a DEX server described as enabling 'cross-chain trading operations on Paloma DEX'; sibling tools include 'execute_token_swap', 'buy_etf_token', and 'approve_token_spending' — all financial operations. Description is empty.

Attacks that exploit this kind of access

Questions about add_liquidity

What does the add_liquidity tool do? +

add_liquidity. It is categorised as a Financial tool in the Paloma DEX MCP Server MCP Server, which means it involves financial transactions. Block by default and require explicit approval.

How do I enforce a policy on add_liquidity? +

Register the Paloma DEX MCP Server MCP server in PolicyLayer and add a rule for add_liquidity: allow, deny, rate-limit, or require approval. Point your MCP client at the PolicyLayer proxy URL and the rule is enforced on every call, before it reaches Paloma DEX MCP Server. Nothing to install.

What risk level is add_liquidity? +

add_liquidity is a Financial tool with critical risk. Critical-risk tools should be blocked by default and only enabled with explicit human approval.

Can I rate-limit add_liquidity? +

Yes. Add a rate_limit block to the add_liquidity rule in your PolicyLayer policy. For example, setting max: 10 and window: 60 limits the tool to 10 calls per minute. Rate limits are tracked per agent session and reset automatically.

How do I block add_liquidity completely? +

Set action: deny in the PolicyLayer policy for add_liquidity. The AI agent will receive a policy violation error and cannot call the tool. You can also include a reason field to explain why the tool is blocked.

What MCP server provides add_liquidity? +

add_liquidity is provided by the Paloma DEX MCP Server MCP server (volumefi/mcppadex). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.