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Provide and Remove Liquidity

Providing liquidity adds reserves to an LP-owned pool and issues its LP Token. Removing liquidity redeems LP Tokens for reserve assets.

The LP Token represents pool backing. A liquidity action changes that backing and LP supply; a Reserve Asset swap exchanges assets while leaving LP supply unchanged.

The economics of an LP position​

Your position combines exposure to the pool’s backing with participation in its trading economics. Trading fees accrue in Rewards; the pool’s published payout or reinvestment mechanism determines the income received by LPs. Trades pay the pool the full value of the assets they receive, valued at post-trade prices. Trading fees generate income on top.

Review the portfolio’s assets, fee activity, reward rules, and exit liquidity together. See Portfolio Exposure and Trading Income.

Proportional participation​

Every participating reserve must move by the same fraction of its current balance. You can use one reserve, a subset, or all reserves, subject to the pool’s supported roles and valid state.

Suppose a pool holds 1,000 units of A and 2,000 units of B. Adding 10 A and 20 B increases both by 1%. Both participating assets increase by the same fraction of their opening reserves.

When every Reserve Asset participates proportionally, relative pool prices are unchanged. A partial basket can change relative prices and requires the liquidity quote’s scale adjustment.

Provide​

Choose the participating reserves and proportional pay amounts. Preview the LP Token amount with the liquidity quote. Set a minimum LP receive amount, complete any external-token approvals, and submit the provide operation.

Initial pool formation uses its own funding or deposit process. Ordinary provide operations require an existing valid LP supply and backing.

Remove​

Choose the LP amount to redeem and the participating receive reserves. The quote determines their proportional withdrawals. Protect each output with a minimum token amount.

The engine derives proportional receive amounts across the selected reserves. The current remove operation also requires the redeemed amount to be smaller than the complete LP supply.

App and contract availability​

Use liquidity controls when exposed by the selected pool. Integrators can call the dedicated quote and execution functions documented in Liquidity API.

Staking and deposit epochs have different purposes. Read Stake and Deposit Phases before choosing either action.