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Liquidity Providing Guide
Description
A liquidity provider is a user who provides their crypto assets to a platform to add liquidity there.
Tokens that users supply to a platform are stored in a liquidity pool. In return, liquidity providers receive LP tokens that confirm their share in the liquidity pool. The more liquidity is added to the pool by a user, the more LP tokens they receive. These LP tokens can be then added to LP Staking at 35% APR (for more info, check the LP Staking guide out).
Anyone can access the LP functionality by using the Pool section of the Nimbus Platform.
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Step 1
Go to the Pool section of the main menu of the Platform.
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Step 2
Click on the Add liquidity button, and a new window for creating a token pair will open.
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Step 3
Choose tokens you’d like to create a pair with and the amount you want to provide to the Platform. When entering the amount for the first token, the amount for the second one will be counted automatically, as tokens should be provided in equal proportions.
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Step 4
Click on the Supply button and you will see the amount of LP tokens that you will receive in exchange for those two tokens provided. If you agree, click on the Confirm Supply button.
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Step 5
Once done, your wallet will ask for confirmation. The gas fee needs to be paid for the transaction. If you agree with the gas volume, confirm the transaction. Note that when adding liquidity for the first time, you will need to approve the action (the gas fee needs to be paid here only once).
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Step 6
Once confirmed, you will get back to the Platform and see that the transaction has been submitted.
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Step 7
The information about LP tokens received will be displayed in the window below the Add liquidity button.
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Step 8
You can now either add more liquidity to the pair or withdraw tokens from the pool. Use the Manage button for these actions.