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Liquidity

Liquidity pool

What is liquidity

A liquidity pool is the collection of tokens an exchange has to offer for swaps. Consider this as a piggy bank with 2 types of tokens when you can take some amount of token X, but you need to repay the same amount as the equivalent of the token Y.
Each swap moves the price up or down, depending on the trade direction.

Why provide liquidity

Providing liquidity makes you eligible to claim a portion of trading fees generated by each swap made in the pool you added liquidity to.

How to add liquidity

1) To add liquidity, you need to have some amount of token X and some amount of token Y. If you miss any of the two tokens, you can buy the missing amount by following this guide.
2) Go to https://tethys.finance/pool/add or simply click Liquidity button in main menu of Tethys
3) Select token X and token Y.
Adding liquidity to Tethys
4) Click "Supply" and confirm the transaction.
5) And that's it! From this point, you are going to earn a portion of trading fees as a liquidity provider.