Instructions for Adding Liquidity
As Liquidity Provider you can earn Governance Token and join the DAO:
- Provide liquidity by entering a pool that is incentivized by Astar.Exchange Token
- Deposit the liquidity token (AXP) you received after supplying liquidity into a yield farm
Adding liquidity is really straightforward. First, you must choose which tokens to input. Click "Add".
After selecting our desired input tokens, we're ready to click "Supply". If this is your first time interacting with Astar.Exchange's smart contracts for either or both of the tokens in question, you will be prompted to "Approve" that our smart contracts are allowed to handle them for you.
When the liquidity add is done, you receive Astar.Exchange Liquidity Provider (AXP) tokens in return. These represent your share in the liquidity pool, and your earned fees that are received upon withdrawal of the liquidity.
If the pool you wish to provide liquidity to does not exist, you can create it. Just provide the tokens, and off you go. As the first liquidity provider, you set the initial exchange ratio (price) if one of the tokens in the pair does not exist yet on Astar.Exchange. This often quickly corrects itself through arbitrage and by more liquidity providers adding to the pool.