What is Liquidity pool?
Pool is a kind of storage where two coins are
deposited in equal amounts. These funds are used
when someone wants to swap one coin for another.
By providing liquidity, you ensure available
resources and receive rewards for it.
How can I earn on providing liquidity?
Liquidity providers receive 80% of trading fees
from the pool's transactions. Fee rewards are
calculated in both coins of the pair
proportionally to your pool share. If there are
any boosts in the pool, you can also earn extra
rewards in various coins. They are distributed
among all liquidity providers too, but limited in
duration.
How often are rewards distributed?
Fee rewards are compounded into your position in
real time, after every swap in the pool. You can
claim them by withdrawing your liquidity. Boosts
rewards are distributed daily. They are available
for claiming in the Rewards section anytime.
What are LP tokens?
Liquidity Provider Tokens, aka LP tokens, are
credited to your wallet in return for deposited
coins. They represent your share in the pool, so
keep them safe. If you send LPs to another wallet,
you won’t be able to manage your position and get
new rewards.
How to withdraw funds from the pool?
Click Withdraw and choose, what percentage of
your pool share you want to remove. Then you will
see how much of each coin you will receive after
the withdrawal confirmation.
Make note: when
withdrawing funds, LP tokens are burned. So be
sure you have them in the wallet, otherwise you
can’t remove your liquidity.