How to add/remove liquidity
Last updated
Last updated
"Liquidity" is key to how Elektrik Dex's Exchange works. You can help by adding two types of tokens at the same time on the Liquidity page.
To add liquidity, you have to put in some amount of any two tokens you choose. The one with the lower dollar value decides how much liquidity you can give.
You can trade to get any supported tokens you don't have. In our case, we'll use ARB and WBTC to add liquidity.
To provide liquidity, follow these easy steps, using ARB and WBTC as our example:
Go to the Liquidity page.
Hit the “+ Add New Position” button.
In the top left box, pick the two tokens you want to pair. We're choosing ARB and WBTC.
Now select a fee tier according to your token market.
0.05% is best for pairs with stability, such as 2 stablecoins. An example is USDT/USDC as we have shown
The 0.3% fee tier is suitable for liquidity pools with 1 stable asset and 1 volatile asset. An example would be USDC/ETH
The 1% fee tier is suitable for liquidity pools with 2 volatile assets. An example would be ETH/BTC
Next, you will set a price range in which your liquidity will be used. The price range is adjusts itself according the the tick spaces. Incase the price range you opt for is more than the current price of the market then you will be asked to add the liquidit in single token.
The "Full Range" option allows you to have no minimum or maximum, but instead enable you to provide liquidity at every price. This results in lower fees and less concentration
Put in how much of one token you want to use. The system figures out the other one. If you don't have enough of one token, you'll see a warning, and the button won't work. Put in less or hit “Full Range” to use all you have.
Press “Enable WETH.” Please note, that you might have to do this for both If you are adding the liquidity in our DEX for the first time.
Now hit Preview and click on "Add" button to send the add liquidity tx on chain via your wallet.
Your wallet will be prompted, check the gas price you are willing to pay before hitting confirm button in the wallet.
Once you have added the liquidity a confirmation modal will be shown with a link of your tx over the explorer.
To remove liquidity.
1. Visit the Liquidity Page.
2. Click on the pair you want to remove liquidity from under “Your Liquidity".
3. Click “Decrease”. A new modal will appear.
4. Use the buttons or slider to choose how much liquidity you want to remove. Choose “MAX” to remove all of your liquidity from this pair.
5. The “Remove” button will light up. Click to proceed.
6. A window will appear showing how many tokens you will receive. Click “Confirm”. Your wallet will ask you to confirm the action.
7. After the transaction is confirmed. You will receive two of the tokens from your pair. And if you haven't removed all of your liquidity, your remaining liquidity value will be updated on the liquidity page.
