What is Providing Liquidity?
By providing liquidity (tokens) to the pools you create a market for the pair. This means that when a trainer wants to swap their token there will always be tokens in the pools to trade with. For providing this liquidity you will be rewarded with LP tokens.
How to Provide Liquidity on Katana?
Below are the steps to add liquidity to a pool. In this example, we add liquidity to the pair AXS/WETH.
- Visit the Katana Pool
- Connect your Ronin wallet
3. You will need to agree to the Terms of Service.
4. You need to select a liquidity pool. The three launch pools are: AXS/ETH and SLP/ETH. Let's use AXS/WETH in this guide. Select both AXS and WETH then input the amount you want to add to the liquidity pool. The amount of token is always even. In this example, if we add 25 AXS, 0.3857 WETH will be paired at the price of 1 WETH = 64.7885 AXS.
5. Click "Confirm Supply".
6. You will be asked to confirm the transaction in your Ronin wallet. The transaction will then be submitted and could take time to process.
7. You will now see your liquidity listed. Here, we have 3.105 AXS/WETH liquidity pool tokens.