Introduction
What is a Liquidity Pool (LP)?
A liquidity pool is typically two different cryptocurrencies locked in a smart contract on a decentralized exchange (DEX) such as Dexter to enable easy and efficient trading between users.
Why might you want to contribute to a liquidity pool?
Contributing to a liquidity pool allows you to earn passive income through trading fees whenever users swap between the coins in the pool. By providing liquidity, you can earn a share of the fees proportional to your contribution.
Prerequisites:
A FuturePass (here’s a guide on how to create one)
Tokens for the LPs you wish to contribute to
Steps
Step 1: Logging In
Head to https://app.dexter.trade/ and click ‘Launch App.’
Step 2: Connecting Wallet
Click ‘Connect Wallet’, then ‘Pool’.
Step 3: Adding Liquidity
Before beginning, it’s important to note that Dexter supports LPs on both The Root Network and XRPL. Ensure you've selected your desired network before proceeding.
Navigate to the ‘Add Liquidity’ tab, where you’ll find a list of available LPs, along with the following details:
Which tokens are in the LP
The value of each token in the LP
Liquidity value (in USD) of the LP
ℹ️ Note: Use the search bar to quickly find a specific LP.
Once you’ve selected the LP you wish to contribute to, you’ll be directed to the ‘Add Liquidity’ interface. Here, you can:
Choose your contribution amount
Adjust slippage (via the cog icon)
Review gas fees and your estimated LP share
When you're satisfied, click ‘Add Liquidity’ to complete the process.
Step 4: Managing Positions
Click the ‘Manage Positions’ tab. Here you’ll see a list of the LPs that you currently have a share of.
To add or remove liquidity, just click the pair you want to manage and add/remove your desired amount.
And there you have it! If you have any questions or further issues, you can open our help center by clicking the circled question mark in the bottom right of your screen to get in touch. Thanks!