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Add Liquidity

The Pool page allows Liquidity Providers (LPs) to check each pools status (APR, TVL, Trading Volume) and add their liquidity. Also, they can set price ranges to desired liquidity pools and provide concentrated liquidity.
In addition, liquidity in varied price ranges can be provided to a single pool, which allows users to possess various positions in one pool. This means that LPs can control liquidity provision on a position-based method, not pool-based.
Conventionally, the narrower the price range, the higher the profit. For instance, if you provide liquidity to 99%-101% of the current price range, you may earn more than X200 swap fee compared to V2.
However, if the current price leaves the price range provided by the users, there is a risk – they may not receive the swap fee and until the current price is back in the range. It is therefore important to set tactical price ranges depending on your liquidity provision strategy.

APR

You can see the Average APR that the pool is earning under Pools Page, and the Estimated APR that can be expected when liquidity is supplied to the given price range in [Add Liquidity]. Each is calculated in the following way:

1. Average APR = Pool Income($ Value) / Pool TVL ($ Value)

  • Pool Income = Swap Fee + Rewards
  • The Swap Fee is used in calculation after excluding 10% of protocol fee from them. No protocol fee is taken from Rewards.
  • More specifically, it will be calculated as below according to how much time has passed since the pool is created :
    • [< 1 day] from pool creation : “TBD"
    • [1 day ≤] from pool creation : Calculates APR based on data from recent 24 hours

2. [Add Liquidity] Estimated APR = Estimated APR of Full Price Range Position(V2 type) * Fee Boost

  • Estimated APR of Full Price Range Position is calculated through the profit($) earned by 1$ worth of liquidity based on the last N days of data.
  • More specifically, it will be calculated as below according to how much time has passed since the pool is created :
    • [< 1 day] from pool creation : “TBD"
    • [1 days ≤] from pool creation : Calculates APR based on data from recent 24 hours
  • The Fee Boost increases as you concentrate liquidity more.
  • Estimated APR is an estimate based on historical data. It does not guarantee future profitability.
Last modified 9mo ago