Adding / Removing Liquidity

How to Supply Liquidity

Follow the five easy steps below to add Liquidity, or scroll down for a detailed guide.

Adding Liquidity: Step by Step Guide

  1. Select Liquidity Pool:

On the Pools page, search for a Liquidity Pool you wish to supply liquidity for

  1. Deposit your Tokens:

The panel on the right hand side of the Liquidity Pool page will provide you with the option to add any quantity of tokens, the below example you can see the option to add AVAX and USDC.

  1. Select your Liquidity Shape:

If you are unsure about the type of shape, refer to the above guide to help you decide the type of shape that best fits your investment strategy.

  1. Supply your Liquidity:

Now press the Supply button. Once you have deposited Liquidity, your details will be highlighted on the left side of the page. Your liquidity shape will appear in the graph and your balance will be highlighted.

Batch Liquidity Deployment

Deploy liquidity over ANY range you desire, select 'Spot (Uniform)' and enter the price range that you want to supply Liquidity to. Next, select 'Add Liquidity' for each batch transaction to deploy your liquidity over the desired range.

Using Batch Liquidity Deployment, you can deploy liquidity over a wide range, enabling a more passive approach to liquidity provisioning.

There are Four options to remove Liquidity

  • Remove both tokens from the pool

  • Remove the first token

  • Remove the second token

  • Remove tokens from specific bins

To remove liquidity, simply select 'Remove Liquidity' on the Pool page that you have supplied into. You will then have three options you select, simply select one of these and then define how much liquidity you would like to remove (or select Remove all).

To remove tokens from specific bins, simply enter the price points that you wish to remove tokens from. This feature gives you extra liquidity for managing your position, you may find this useful if you plan to rebalance your existing liquidity position.

Risks when managing liquidity

Engaging in providing Liquidity using the Liquidity Book protocol involves risks, including but not limited to impermanent loss, smart contract vulnerabilities, systemic failures, liquidity crunches, regulatory changes, market volatility, and operational errors. Your capital is at risk; only invest funds you can afford to lose. No assurance or guarantee is provided, and LPs assume all responsibility for their investments. Seek independent financial advice as needed.

If you have any questions about Liquidity Shapes and how to deploy them please join the Merchant Moe Discord for further assistance.

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