How to Provide Liquidity

Category: tutorials · Updated: March 15, 2026 · Tags: liquidity, defi, yield, tutorial

Earn Fees as a Liquidity Provider

Provide liquidity to earn a share of trading fees.

Step 1: Choose a Trading Pair

Go to DEX > Liquidity Pools and browse available pairs. Check the current APR.

Step 2: Check Requirements

You'll need equal values of both tokens. For example, for XOM/USDC pool, you need $500 of XOM and $500 of USDC.

Step 3: Add Liquidity

  1. Click "Add Liquidity"
  2. Enter amount of first token
  3. Amount of second token is calculated automatically
  4. Review the transaction
  5. Click "Supply"
  6. Confirm in your wallet

Step 4: Receive LP Tokens

You'll receive LP (Liquidity Provider) tokens representing your share of the pool.

Step 5: Earn Fees

You now earn a portion of every trade in that pair! Fees compound automatically.

Step 6: Monitor Your Position

Check your liquidity dashboard to see accumulated fees and current value.

Step 7: Remove Liquidity

When ready to withdraw:

  1. Go to your liquidity positions
  2. Click "Remove"
  3. Choose how much to remove (partial or full)
  4. Confirm transaction
  5. You'll receive both tokens back plus earned fees

Understanding Impermanent Loss

If token prices diverge significantly, you might have less value than if you'd just held. The trading fees usually compensate for this.