Liquidity Provision
Provide liquidity to Constant Product pools and earn trading fees.
Accessing Liquidity Features
Available in the trading interface for Constant Product pools only (graduated tokens at 100% bonding).
Located below the trading panel with three options:
+ Liquidity
Add liquidity at current price ratio
- Liquidity
Remove liquidity and withdraw your share
My Position
View your current liquidity position and earnings
Bonding curve pools (tokens under 100% bonding progress) don't have liquidity provision.
Adding Liquidity
Click + Liquidity button
Enter token amount OR BTC amount (the other auto-calculates to match current pool ratio)
Confirm transaction
You receive LP tokens representing your share of the pool.
Example: Pool has 1M tokens and 0.5 BTC. You add 50k tokens + 0.025 BTC = 5% pool share.
Removing Liquidity
Click - Liquidity button, select percentage to withdraw (25%, 50%, 75%, 100%), confirm. You receive your share of both tokens and BTC, and your LP tokens are burned.
My Position
Shows your current liquidity position:
LP tokens owned
Pool share %
Value in USD
How LP Rewards Work
Fee Distribution:
Each trade pays LP fee, usually it's set at ~0.3% fee
Fees split proportionally among all liquidity providers based on pool share %
If you own 5% of pool, you earn 5% of all trading fees
Auto-Compounding:
Fees automatically added to your liquidity position
No claiming needed
LP token value increases over time as fees accumulate
APR Calculation:
APR = (Annual Fee Revenue / Your Liquidity Value) × 100
Example:
- Your liquidity: $5,000 (5% of pool)
- Daily volume: 1 BTC ($100k)
- Daily fees: 0.003 BTC (0.3% of volume)
- Your daily earnings: 0.00015 BTC (5% of fees) = $15
- Annual earnings: $15 × 365 = $5,475
- APR: ($5,475 / $5,000) × 100 = 109.5%APR varies with trading volume - higher volume = higher APR.
Impermanent Loss (IL)
What it is: When you provide liquidity and the price ratio changes significantly, you may have less value than if you just held the tokens separately.
How it happens: The pool automatically rebalances to maintain the constant product formula (x × y = k). When one token's price increases, the pool sells some of it for the other token.
Example:
Start
1,000
0.1 BTC
0.0001 BTC
$20,000
0%
After 2x price (in pool)
707
0.141 BTC
0.0002 BTC
$28,280
-6%
If held separately
1,000
0.1 BTC
0.0002 BTC
$30,000
-
Despite gaining value, you have $1,720 less than if you'd just held the assets.
Key points:
IL is only "permanent" when you withdraw
Trading fees can offset IL over time
Price returns to original = IL disappears
More volatile tokens = higher IL risk
Related Documentation:
Trading Interface - Access liquidity features
Discover - Find pools to provide liquidity
FAQ - Common questions
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