How to Add/Remove Liquidity
Introduction
Liquidity is a key element of decentralized exchanges like Baptswap. This guide provides instructions on how to add and remove liquidity for token pairs on the Baptswap Exchange.
Adding Liquidity
Basic Requirements
To add liquidity, you must stake two tokens in a pair. The amount you can add is limited by the lower value of the two tokens in USD.
Steps to Add Liquidity
Select a Token Pair: Currently, Baptswap supports adding liquidity for specific pairs, such as BAPT/APT.
Commit Your Tokens: Decide on the amount of each token you want to stake. Remember, the pair's liquidity limit is set by the lesser value of the two tokens.
Exchange Tokens If Necessary: If you don't have the required tokens, you can acquire them through trading. Refer to our guide on How to Trade on Baptswap for assistance.
Navigate to the Liquidity Page: Access the Liquidity page on Baptswap to begin the process of adding liquidity.
Receive LP Tokens: Upon adding liquidity, you'll receive LP Tokens, which represent your share in the pool and entitle you to a portion of the trading fees generated from that pair.
Removing Liquidity
Process Overview
Removing liquidity involves redeeming your LP Tokens to withdraw your staked assets and any accrued fees.
Steps to Remove Liquidity
Access Your LP Tokens: Go to the Liquidity page where your LP Tokens are managed.
Select the Pool: Choose the liquidity pool you have staked in and wish to withdraw from.
Redeem LP Tokens: Initiate the process to redeem your LP Tokens. This will return your staked assets along with any earned fees.
Confirm the Transaction: Verify and confirm the transaction details in your wallet.
Conclusion
Adding and removing liquidity on Baptswap is a straightforward process. By providing liquidity, you contribute to the exchange's functionality and earn rewards in the form of trading fees. Always ensure you understand the implications, including risks like impermanent loss, before committing your assets to a liquidity pool.
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