Add liquidity in pools
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https://app.jexchange.io/liquidity
Liquidity pools play a crucial role in the DeFi (decentralized finance) environment by allowing users to provide funds to facilitate token exchanges (swaps).
The advantages of liquidity pools are multiple, such as:
the possibility of earning interest, mainly linked to exchanges made (excluding exceptional rewards)
the reduction the risks of market manipulation.
BE CAREFUL: There are also risks associated with liquidity pools, such as Impermanent Losses (IL).
Non-permanent losses occur when you provide tokens to a liquidity pool and the exchange rate moves up or down.
When the gap between the token exchange rate at deposit and the current exchange rate is large, you face non-permanent losses. Which means you will get tokens in different proportions than when depositing.
You should know that these losses can be offset by transaction fees which are redistributed to liquidity providers.
On the “Pools” page you will find the liquidity pools. This page is scalable as other pools will be added over time.
Click on the pool to access the pool page.
As a liquidity provider, simply click on "Add".
With the exception of stable coin pools, our pools are set to 50% - 50%. By entering the number of tokens of an asset, the system will automatically set the second amount of the token to correspond to half of the total contribution.
In the example below, wanting to provide liquidity in the wETH - wBTC pool, the user decided to contribute 0.17 $wETH and the system automatically filled in the value 0.00485... $wBTC to respect the 50% - 50% ratio. If the user has enough tokens in their wallet, they will be able to validate this contribution. In this example, the user does not have enough $wETH to finish providing liquidity.
BE CAREFUL: Once the liquidity has been provided, the Smart Contract will send you "proof of deposit" in the form of a compound token (LP token). This token should of course be kept carefully since it is essential to withdraw your tokens from the pool.
To withdraw liquidity from a pool, you will need to go to the pool in question and click on the "Withdraw" button.
In the withdrawal screen, you will need to:
select the amount to withdraw (25%, 50%, 75% and 100% buttons are available to facilitate the user's choice)
carefully the estimated amounts of tokens you will receive
