Liquidity Provision
Frequently asked questions about Providing Liquidity.

What is a Liquidity Provider?

A liquidity provider is a user who funds a liquidity pool with crypto assets they own to facilitate trading on the platform and earn passive income on their deposit. The liquidity pool is a pool of tokens that traders can buy and sell from at market price, ensuring their order can be fulfilled without them having to wait for a counterparty. The liquidity provider is then rewarded a share of the fees from all swaps.

Why should I provide liquidity for SingularityDAO?

It is important that we have active Liquidity Pools in order for our DynaSets to function. In return for providing this service you will be able to earn SDAO tokens as a reward.
Those tokens will not only allow you a right to vote on the future of the platform, but can also be staked within the platform to earn additional benefits.

Which pair should I add liquidity to?

It is entirely up to you which to choose. Something to consider is that rewards may vary depending on which pool you choose, and how many people are already in that pool, so do make sure you choose the one that most suits you.
Keep in mind too, that you will need to stake your LP tokens in the Yield Farming portal, to earn and claim these rewards.

Do different pools give different rewards?

Yes, rewards will vary depending on a number of factors.
  • The size of rewards available to each pool.
  • The number of people farming each pool.
  • The intended APY of each pool.

Do I need to provide liquidity to both tokens in a pairing?

Yes, you’ll need both assets at equal dollar value. Currently we do not support providing single-sided liquidity. You should also keep in mind to have some additional Ethereum available to pay for gas fees.

I tried to add liquidity but the transaction failed.

Price can fluctuate a lot, if you chose a low GAS fee (slow), the price may have moved more than 0.5% (slippage). Try a higher gas fee (faster transaction).

Where do I see the status of my LP Tokens?

The “Liquidity” tab shows your share of the pool and an estimate of the daily fee you’ll be receiving.

How do I Provide Liquidity?

Please visit our Liquidity Provision Guide for details.

Why can't I see my LP tokens anymore?

Don't worry! After providing LP you are given LP tokens to hold or farm. Depositing those LP tokens in Yield Farming will result in Liquidity not being displayed on the Liquidity page. This will be updated in the future to reflect your actual LP balance while farming LP tokens.