Liquidity FAQ
What are APR Calculations on XDEX
📊 Displayed APRs on XDEX
APRs shown on XDEX liquidity pools are extrapolated estimates based on recent performance — calculated over daily (default), weekly, or monthly timeframes.
⚠️ These figures are for illustrative purposes only. Past performance does not guarantee future returns.
💰 Sources of APR
Maker Fees: Earned from trading activity within the pool — a portion of the 0.25% swap fee (84%) is distributed to LPs.
Reward Emissions (if applicable): Additional APR from ecosystem farming incentives for eligible pools.
What are LP tokens?
💧 Earning with LP Tokens
When you add liquidity to a pool, you receive LP tokens representing your proportional share of the pool’s assets. For example: providing to the XDEX–USDC pool will give you XDEX–USDC LP tokens.
These tokens allow you to reclaim your share of the pool — including any accumulated trading fees — at any time.
💰 Earning Trading Fees
Each swap on XDEX incurs a 0.25% trading fee, which is distributed as follows:
0.21% → Returned to the liquidity pool, increasing the value of all LP tokens
0.04% → Sent to the XDEX protocol treasury
📊 Example
Let’s say a pool starts with:
100 LP tokens
Backed by 100 XDEX and 100 USDC
After trading activity, the pool balance increases to:
100.021 XDEX and 100.021 USDC
Each LP token is now worth:
1.00021 XDEX + 1.00021 USDCAs trades continue, the pool grows, and your LP tokens represent more value — even if the number of tokens you hold doesn’t change.
✅ Conclusion: LP tokens passively earn trading fees for you. The more active the pool, the more your LP tokens grow in value over time.
How to add liquidity?
➕ How to Add Liquidity on XDEX
Follow these steps to join a liquidity pool and start earning fees:
1️⃣ Access the Liquidity Section
Click “Liquidity” from the main navigation menu.
2️⃣ Choose a Pool
Connect your Backpack wallet
Search for a pool using a token mint address or ticker
Or browse the list of available pools
Click “Deposit” on the pool you want to join
3️⃣ Select Tokens & Add Liquidity
Choose the token pair you wish to supply
Liquidity must be added in a 1:1 USD value ratio
Enter the amount for one token — the second token will auto-fill to match the required ratio
Click “Supply”, then approve the transaction in your wallet
4️⃣ Confirmation
Once confirmed on-chain, you'll receive LP tokens in your wallet — representing your share of the pool and your eligibility for trading fee rewards.
💡 You can view your LP balance and manage your position at any time in the “My Positions” tab.
How do I manage my liquidity?
1️⃣ Navigate to Your Portfolio
Go to the “Portfolio” page
Under “My Positions”, select the “Standard” tab
2️⃣ Manage Your Position
From here, you can:
🔹 Withdraw liquidity to reclaim your underlying tokens
🔹 Add more liquidity to increase your share in the pool
Select your desired action and approve the transaction in your wallet to complete the update.
💡 LP token balances and earned fees are updated automatically in real time after each action.
Are my LP tokens staked in farms still earning Fees?
Maker fees are automatically compounded into the pool, increasing the value of each LP token over time. There’s no need to manually claim — your share grows with every trade.
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