Token Tools

Add Liquidity

Provide liquidity to trading pools and earn fees from every trade. Become a liquidity provider on SUI blockchain.

What is Liquidity Provision?

When you add liquidity to a pool, you deposit equal values of both tokens. In return, you receive LP (Liquidity Provider) tokens that represent your share of the pool and entitle you to a portion of trading fees.

Earn Trading Fees

Liquidity providers earn a percentage of every trade that occurs in the pool, proportional to their share.

How to Add Liquidity

  1. 1

    Select the liquidity pool you want to provide to

  2. 2

    Enter the amount for one token (the other adjusts automatically)

  3. 3

    Review the current pool ratio and your share

  4. 4

    Approve both token transactions if needed

  5. 5

    Confirm and sign the add liquidity transaction

  6. 6

    Receive LP tokens representing your pool share

Key Concepts

LP Tokens

LP tokens represent your ownership stake in the pool. They can be burned anytime to withdraw your liquidity plus earned fees.

Impermanent Loss

When token prices change significantly, you may experience impermanent loss. This is temporary and can be offset by trading fees over time.

Pool Share

Your percentage of the total pool determines your share of trading fees. Larger providers earn more fees proportionally.

Pro Tips

  • • Start with smaller amounts to test the process
  • • Monitor your position regularly for optimal returns
  • • Consider the trading volume when choosing pools
  • • Higher volume pools generally offer better fee earnings

Important Reminders

  • • You need both tokens in equal value to add liquidity
  • • Keep your LP tokens safe - theyre needed to withdraw
  • • Gas fees apply for adding liquidity transactions
  • • Research the tokens and pool before providing liquidity

Start Earning Fees

Provide liquidity to pools and start earning from trading activity.