Adding Liquidity
💧 Add liquidity to XDEX
XDEX allows users to provide liquidity to token pairs, earning a portion of swap fees in return. Follow these steps to join a pool:
1️⃣ Access the Liquidity Pools Page
Go to the Liquidity Pools section from the main navigation at https://xdex.xyz/liquidity or click here.
2️⃣ Select a Pool
🔹 Connect your wallet.
🔹 Use the search bar to find a pool by token name, symbol, or pair — or browse the available options.
🔹 Click the Deposit button next to the pool you'd like to join (e.g., XNT/XDEX or XDEX/USDC).
3️⃣ Add Tokens
🔹 Enter the amount of the first token you want to deposit — the second token amount will automatically adjust based on the current pool ratio. 🔹 Liquidity must be added in a balanced ratio by value (based on live pool prices). 🔹 Click Deposit and approve the transaction in your wallet.
4️⃣ Receive LP Tokens
After confirmation, you'll receive LP tokens representing your share of the pool. These tokens entitle you to a portion of swap fees and can be used to withdraw your liquidity at any time.
5️⃣ Optional: Stake for Farming Rewards
If the pool supports farming, a rocket icon will appear next to it. Click it to stake your LP tokens and earn extra rewards.
🔄 Managing Liquidity
View and Manage Positions
Navigate to your Portfolio to:
🔹Deposit more into a position 🔹Withdraw to redeem your LP tokens and recover your assets
All actions require wallet approval.
📘 How Liquidity Pools Work
🔹 LP Tokens
When you supply assets to a pool, you get LP tokens like XNT-XDEX LP.
These:
🔹Represent your stake in the pool 🔹Accrue a share of trading fees 🔹Are required for withdrawing your funds
🔹 Fee Breakdown
Each trade in the pool applies a 0.25% fee, split as follows:
0.21% (84%)
Paid to LPs as swap fee rewards
0.03% (12%)
Used to buy back and burn $XDEX tokens
0.01% (4%)
Sent to the protocol treasury
🔹 Example
Suppose 100 LP tokens represent 1,000 XNT and 1,000 XDEX. After volume-driven fees, the pool grows to 1,000.25 XNT and 1,000.25 XDEX. Each LP token is now worth more than when initially minted.
⚠️ Impermanent Loss
When asset prices diverge from your deposit price, it may reduce your returns versus just holding the tokens. This is called impermanent loss, and it's important to understand before providing liquidity.
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