How to Provide Liquidity
How to use the interface to Provide Liquidity
Last updated
How to use the interface to Provide Liquidity
Last updated
To provide liquidity into GammaSwap, navigate to the "Earn" page and select a pool you would like to provide liquidity into.
To determine what pools make sense to provide liquidity into, choose assets that you would like exposure to and determine if the APY will compensate you well for your risk. It's best for passive LPs to provide liquidity over a longer time horizon so the fees can outweigh short term volatility. Here is a handy calculator for 50/50 pools to calculate Impermanent Loss based on specific price changes. Once you have found a pool in the pools page, click on it and you will be navigated to the individual pool page.
There are two ways you can provide liquidity: zapping and manual. Zapping is the default mode because it reduces the friction for users. With any token, the UI will swap into the two token amounts in the 50:50 ratio for you. Just select the token you want to swap in with and the amount.
A reason you may want to provide liquidity manually is that the price impact can be high.
In this scenario, instead of providing liquidity via zap you may want to use EtherFi's UI to unstake or a CEX for better execution. When you acquire the appropriate ratio of both tokens, you can avoid high price impact by providing liquidity manually.
Note: At this time, autostake is not enabled for zapping. If you provide liquidity into a pool with farm incentives via a zap, you must stake your LP tokens after in the corresponding farm page to earn token incentives.
To provide liquidity manually, toggle the switch at the top right of the section.
Provide an amount for one of the tokens in the pool and the interface will auto generate the matching amount in the other token input box to match the 50/50 ratio. You will need both tokens in your wallet so you will need to acquire these tokens beforehand. The reason to provide liquidity manually is to avoid high price impact.
You can also set a slippage limit when providing liquidity by navigating to the gear icon.
Approve the token allowance and press the "Confirm" button.
Finally, confirm the transaction in your wallet!
Congratulations you have successfully provided liquidity into GammaSwap! 🥳 🎉
