Liquidity
Last updated
Last updated
In decentralized exchanges, liquidity pools are collectively sourced pools of tokens, secured by smart contracts, and used to facilitate trading between assets. By depositing assets into AtDex's liquidity pools, you not only increase the liquidity available to other traders but also earn transaction fees and platform incentives. These incentives include platform tokens such as ARR, esARR, and ADP.
Before taking any action, please ensure you understand the pros and cons of providing liquidity. Providing liquidity is subject to impermanent loss and may carry certain risks. You can learn more about impermanent loss by clicking here.
When you add liquidity to the pool, you will receive LP tokens. A trading fee of 0.25% will be charged when someone trades tokens.
The liquidity pool also allows you to stake your LP tokens in the farm to earn platform tokens ARR and esARR. Therefore, in addition to earning income from token trades, users can also earn rewards by staking LP tokens.
For example, if you add liquidity to the USDT/ETH pool, you will receive USDT-ETH LP tokens. The number of LP tokens you receive represents your share in the USDT/ETH pool. You can always withdraw your funds by removing your liquidity.
