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GuidesAdd & Remove Liquidity

Add & Remove Liquidity

Liquidity providers (LPs) deposit two tokens into a pool and receive LP tokens representing their share. These LP tokens earn a portion of the swap fees generated by the pool.

Add Liquidity

Go to Liquidity

Click Liquidity in the sidebar and then click Add Liquidity.

Select a Token Pair

Choose two tokens to pair (e.g., BNB / BBKFI). You can also navigate directly to a pre-filled pair URL.

Enter Amounts

Enter the amount for one token. The other amount is calculated automatically based on the current pool ratio.

Approve Tokens

If this is your first time, approve both tokens for the router contract.

Confirm & Supply

Click Supply, review the transaction details, and confirm in your wallet. You will receive LP tokens representing your pool share.

Liquidity is added at the current pool ratio. If you provide tokens at a different ratio, the excess amount will remain in your wallet.

Remove Liquidity

Go to Liquidity

Navigate to Liquidity and find your active position.

Select Amount to Remove

Use the slider (25%, 50%, 75%, or 100%) to choose how much liquidity to withdraw.

Approve LP Token Removal

Approve the LP token spend if prompted.

Confirm Removal

Click Remove and confirm in your wallet. Your underlying tokens will be returned to your wallet.

Impermanent Loss

When providing liquidity, the ratio of tokens in the pool shifts as prices change. If you withdraw when the ratio differs from when you deposited, you may receive less value than if you had simply held the tokens. This is known as impermanent loss.

Swap fee earnings can offset impermanent loss over time, especially in high-volume pools.

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