How do I provide liquidity (get LP tokens)?
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You can provide liquidity in single tokens or arbitrary combinations of tokens into Blueshift portfolios to become a liquidity provider (LP).
When you add tokens to a portfolio you acquire a share of the whole portfolio, not just the tokens you provided.
There are different portfolios you can choose from. Each portfolio has its own weighted set of assets. When you add liquidity to a portfolio you get LP tokens in return that reflect your portfolio share.
LP token holders earn a fee paid by traders for each swap. Also, you can for additional rewards.
To provide liquidity:
Open the
Expand the portfolio you want to deposit in by clicking on the βManageβ button
Click on the "Add liquidity" button
Enter the total liquidity amount you want to provide in USD or BASE currency
Select the tokens you want to deposit
Arrange tokens order by drag & drop: the higher the token in the list, the more you want to deposit it
Smart algorithm will distribute the total amount through selected tokens within your balances trying to minimize losses.
What causes loss: depositing the amount in some of the selected tokens (which share will become greater than the target) causes its price decrease resulting in a loss (same as price impact in swaps).
How to decrease losses: follow the tips inside the info-block above the "Add liquidity" button and tips under the token's names in the 2οΈβ£ sections on the right.
If you see 0 amount in the selected token: it's better for you to provide in other selected tokens to minimize your losses. If you want to provide exactly in this token try to unselect other ones.
If you change order and nothing happens: in some cases, distribution with the lowest losses doesn't depend on the order but it always depends on your balances and the token's shares in the portfolio.
Once you are ready, click "Add liquidity";
Double-check the info in the pop-up window and click "Add liquidity" again;
Confirm the transaction in your wallet