Exchange

Exchange

In Elektrik Dex, liquidity is handled through unique, non-fungible positions, ensuring that participants continue to earn a portion of the transaction fees for contributing to liquidity pools. Upon adding your tokens to a Liquidity Pool, you will be issued specialized Liquidity Provider NFT tokens, representing your stake and earning you a share of the trading fees.

Non-fungible liquidity positions

In Elektrik Dex, liquidity providers are granted unprecedented control over the price range in which they wish to allocate their liquidity. By adding your tokens to a Liquidity Pool, you establish a unique non-fungible liquidity position, each with its specific settings.

In this context, Elektrik Dex innovatively treats liquidity positions as NFTs. These NFTs, while transferable, serve as a testament to the ownership of the underlying assets and any accumulated trading fees.

It's important to note a distinct feature of Elektrik Dex: trading fees are not automatically reinvested into the position. Instead, you have the autonomy to claim them on an individual basis through each specific position detail page.

The platform remains committed to providing flexibility for its users; you are free to recover your funds at your discretion by simply choosing to remove your liquidity from the pool.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.