Add and Remove Liquidity

Add liquidity

Now, on Liquidity V3 you can concentrate your liquidity within a particular price range based on your personal market view. You will receive a Liquidity NFT corresponding to each Liquidity Pair token that you deposit.

Adding liquidity to enjoy fee revenue on Position Exchange is never too complex. Let’s follow the below simple steps.

Step 1: Connect wallet

Access the Liquidity section on Position Exchange and connect your wallet

Step 2: Choose pair

Click Add Liquidity button and select a pair of tokens you wish to provide as liquidity

To decide which pair of token to deposit as liquidity, you may consider factors such as TVL, trading volume, and your evaluation of the risk that these token prices diverge in the future.

Then click Approve [token] button to finish choosing.

Step 3: Select the price range and fill in the amount

You need to choose the price range you want to provide liquidity for. You can adjust your range by sliding the price range left-right along the chart or dragging scroll bar below the chart.

When determining the price range, you should consider the expected price fluctuations during the lifetime of the position. You should also actively manage your positions as the market fluctuates.

If the price moves outside the specified range, the position will be concentrated in one of the two assets and no transaction fee will be charged until the price moves back within the range.

Next, decide how much capital to contribute to this position. Fill in the amount of one token then the system will automatically calculate the other by the current currency rate.

Step 4: Confirm

Click Add liquidity button. Confirm the action in your wallet. After the transaction is submitted, a pop-up box will appear to ask you to accept price. Click Accept

Next, confirm add liquidity.

Congrats! Once that transaction confirms, your assets now providing liquidity to POSI traders and your position is earning fees. You can monitor and manage your position on the Pool page.