Adding liquidity to DEXes

1. Connect your Wallet: To interact with a DEX, you'll need a compatible cryptocurrency wallet. These wallets, such as MetaMask or Trust Wallet, allow you to securely store your tokens and sign transactions on the blockchain. Install a suitable wallet extension or mobile app, create an account, and securely store your wallet's seed phrase or private key.
2. Fund your Wallet: Ensure you have a sufficient balance of both the tokens you intend to add to the liquidity pool in your wallet.
3. Access the DEX: Open the DEX and connect your wallet by clicking on the "Connect Wallet" or similar button. This action will prompt your wallet application to authorize the connection with the DEX platform. Before connecting, make sure that it is an official side of the exact DEX, not a scam.
4. Navigate to the Liquidity Pool: Once connected, browse the DEX interface and locate the liquidity pool section. Depending on the platform, this may be labeled as "Pool," "Liquidity," or similar. Find the pool that matches the tokens you possess.
5. Select Tokens and Enter Amounts: In the liquidity pool section, you'll see a list of available pools. Choose the pair you want to provide liquidity for. For example, if you have ETH and a specific ERC-20 token, find the respective pool. Click on it, and you'll be presented with an interface to input the amount of each token you want to contribute.
6. Approve Token Spending: Before proceeding, some DEX platforms require you to approve the spending of the tokens you want to provide as liquidity. This is a security measure to ensure you are aware of the token transactions happening on your behalf. Confirm the transaction on your wallet, carefully review the details, and approve the spending of the tokens.
7. Confirm Liquidity Provision: After approving the token spending, you'll be prompted to confirm the liquidity provision transaction. This transaction will mint new liquidity pool tokens that represent your share in the pool. Double-check the transaction details, such as gas fees and token amounts, and confirm the transaction on your wallet.
8. Transaction Processing: Once you confirm the liquidity provision transaction, it is broadcasted to the blockchain network for processing. The transaction will be added to a block and verified by the network's nodes, which may take some time depending on network congestion. You can monitor the transaction progress on the blockchain explorer by clicking on the transaction hash provided by your wallet.
9. Liquidity Provided: Once the transaction is successfully processed, you have officially provided liquidity to the DEX. In return, you'll receive liquidity pool tokens representing your share in the pool. These tokens can be stored or used to redeem your portion of the liquidity pool's fees and rewards.
Remember that the specific steps and interface may vary slightly between different DEX platforms, but the general process remains similar. It's crucial to exercise caution and review all transaction details before confirming any actions on the blockchain, as transactions cannot be reversed once executed.

Our vision is to create a digital ecosystem of synergies.
Our vision is to create a digital ecosystem of synergies.
Zetly Group Sp. z o.o.
Jesionowa 22, 40-158 Katowice, Poland
KRS 0000983944
Do you want to be up to date? Join the Newsletter!
Copyright © 2021, Zetly OU - All trademarks and copyrights belong to their respective owners.
Copyright © 2021, Zetly OU - All trademarks and copyrights belong to their respective owners.