๐Ÿ’ฐLiquidity pools

Liquidity pools offer a unique opportunity for asset holders to earn rewards by staking their digital assets. When users contribute their tokens to a pool, they become eligible to receive a share of the fees generated from trading within the pool.

The proportion of rewards a user receives is determined by the amount of assets they have contributed relative to the total pool size. For instance, if a pool holds $1,000 worth of assets and a user has supplied 10% of that amount, they would own 10% of the pool and consequently receive a part of the distributed rewards.

Step 1: Choose a pool

Select a liquidity pool to become a provider. You will earn a share of trading fees and potential yield-farming rewards. Check out the โ€œFarmsโ€ section to see the options and compare APRs.

Step 2: Add liquidity

Deposit an equal amount of two tokens into the pool. If needed, swap tokens to match the required amounts. Confirm the transaction to receive LP tokens, representing your liquidity share.

Step 3: Collect fees

Earn a portion of trading fees proportional to your liquidity share. While fee income may be modest, participating in yield farming offers higher rewards.

Step 4: Claim liquidity & rewards

Withdraw funds and accumulated fee rewards from the pool. Unstake LP tokens from farms before claiming liquidity. Once approved, LP tokens will be burned, and original tokens returned along with the fee rewards.

Step 5: View transaction history

Track swaps, approvals, and liquidity actions in the โ€œTrade Historyโ€ section. Transaction statuses may take up to 15 minutes to update on Ethereum.

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