Before you are able to provide liquidity, you'll need to deposit assets to Ronin. You can do this from Binance or by depositing from Ethereum using the Ronin bridge.
- What is a Liquidity Pool?
- A Liquidity pool is a pool of funds locked in a smart contract. Any user (called Liquidity Provider) can add funds into the pool to make it more liquid.
- Providing Liquidity
- When providing liquidity, you provide two tokens of equal value into a pool.
- For example, let's say the current value of ETH is USD 4,000.00 and the value of AXS is USD 100.00; and you would like to provide 1 ETH into the ETH-AXS pool, you'll also need to provide 40 AXS as the pair.
- LP Tokens
- Liquidity Provider (LP) tokens are tokens generated to represent the share of each pool the provider owns.
- LPs earn trading fees from trades that happen in the pool, proportionate to their pool share.
- Are you guaranteed to always be profitable?
Start from the Katana DEX Pool page, you can click on Pool on the top menu bar or go directly to https://katana.roninchain.com/#/pool.
You'll see "Your Liquidity" panel. Click on "Add Liquidity".
Upon clicking, you'll be brought to another page with an Add Liquidity panel. It's similar to the Swap panel, except you'll see a plus sign (+) between the two tokens instead of an arrow down sign (↓).
This symbolizes that you will be adding both tokens into a pool.
Click on Select token.
Now you can choose the tokens you're providing liquidity to.
Once you have chosen the tokens, you can fill in the amount of one of the tokens you would like to provide, the amount of the other tokens will fill itself based on the current exchange value.
You could also click on the little blue Max button to auto-fill the maximum amount of tokens you have available.
At the bottom of the panel, you'll be informed of the current exchange rate between the two tokens. More importantly, you'll also be informed of the percentage of your share of the pool, if you were to provide liquidity amount as listed above.
If everything checks out, click on Supply.
A pop-up will appear and show you:
- Amount of LP tokens you will receive
- Amount of the token you are going to deposit
Click on Confirm Supply. Ronin wallet will then pop-up, asking to confirm the transaction. Click confirm.
This transaction may take a few moments to complete as it registers in Ronin chain.
Once it's completed, you'll see a banner with a blue check icon on the top right of the browser. You can click on 'View on Explorer' to see the detailed information on the transaction, on Ronin Chain Explorer.
Apart from that, you'll also see a Your Position panel appear below the Add Liquidity panel. There are a few things you can see here:
- Your LP tokens amount
- Your tokens amount in the pool
- Percentage of your share of the pool
All your liquidity is now listed on this page. Click on Manage to see your liquidity details.
You have now successfully provided liquidity!
You'll land on the Ronin Analytics page. Click on Accounts on the side menu bar.
You'll be directed to the Wallet Analytics page. Here you can see all the wallets with their liquidity value.
Paste your Ronin wallet address into the search bar at the top of the page. You'll need to use "0x123" format instead of "ronin:123" format. Then click on Load Account Details.
The next page will be the individual wallet details. You can find some information here, including:
- Liquidity value
- Fees earned
- All liquidity positions
- Wallet Stats
The fees earned section is where you can find your earned amount from providing liquidity.
On the liquidity pool of choice, click on Manage. Then click on Remove.
You may need to approve the LP tokens if you're interacting with it for the first time.
Click on Approve, and then click on Confirm when Ronin wallet asks for confirmation.
Once the approval transaction is completed, you'll see a blue banner with blue check on top right of your screen.
You may now remove your LP token for your tokens along with the fees earned.
- 1.Fill in how many LP tokens you would like to remove and burn
- 2.This is where you see how much you're getting when removing liquidity
- 3.Click on Remove when all details are good to go
A pop-up with token details will appear for you to double check. Click Confirm.
Ronin wallet will then appear for you to confirm the transaction. Click Confirm.
A blue banner with a check icon will appear on top right of your screen, signifying the transaction was successful. You may click on View on Explorer to see the transaction details on Ronin Chain Explorer.
You'll also see that Your Position panel is now updated to your latest position within the pool.
You have now removed your liquidity by removing your LP tokens, and have gotten your tokens with the accrued fees, proportionate to your shares. Thank you for your service!
Please see our video guide for a demonstration of providing liquidity.