AMM Liquidity Provisioning
Last updated
Last updated
Transform your assets into active participants in the nftperp ecosystem by becoming a liquidity provider on the AMM.
Head over to the sidebar navigation and click on the "Liquidity" tab to start.
After you enter the Liquidity tab you will see the list of pairs currently supported by nftperp. To contribute AMM liquidity, select the pair you want to support. Click the Add Liquidity button.
Upon selecting a pair to add liquidity to, you will notice a few descriptive stats, including total liquidity, your liquidity (what you have previously contributed), and % return over 30 days. Follow the steps below to deposit liquidity to earn yield.
Price Range: Choose a Price Range based on your LP strategy.
Ranges determine how and when your position generates fees, as well as the risk profile you take on.
A tighter range (degen, narrow) will earn more fees relative to a wider range (wide, max) when the price of the underlying asset is within range. As the price moves, a tighter range will also be subjected to greater impermanent loss. To learn more about providing concentrated liquidity, read on here.
Position size: Enter the amount of the WETH you want to add to the liquidity pool. You can do this in two different ways:
Using the text input, you can enter how much WETH collateral you want to use.
Using the Max button, you can set a maximum position Size.
Choosing leverage: You can use the leverage slider to add liquidity with leverage. The slider will automatically show how much leverage you are using.
Add liquidity: When you're ready to add liquidity, click the button at the bottom of the form. Finally, you will be asked to sign the transaction with your connected wallet.
Once you have added liquidity, you can remove that position. Follow the same process outlined above to remove your position.
Head over to the sidebar navigation and click on the "Liquidity" tab. After you enter the Liquidity tab you will see the list of pairs currently supported by nftperp.
To remove AMM liquidity, select manage liquidity, under the pair you are currently supporting. Click the manage liquidity button.
Remove liquidity: Choose the remove liquidity tab.
Position size: Enter the amount of the WETH you want to remove from the liquidity pool. You can do this in two different ways:
Using the text input, you can enter how much WETH collateral you want to use.
Using the Max button, you can set a maximum position Size.
Remove liquidity: When you're ready to remove liquidity, click the button at the bottom of the form. Finally, you will be asked to sign the transaction with your connected wallet.
Removing liquidity may result in an impermanent position being realized. Part of the initial WETH collateral deposit will be converted to a taker order which can then be managed/closed on the trading page. To learn more about this, read on here.
