Liquidity Pools

How does a Liquidity Pool Work?

MilkyDex charges 0.2% fee for all trades, of which 0.15% is added to the liquidity pool of the token pair that was traded on.
A liquidity pool (LP) is a pool of two tokens. This pool is what allows users to exchange between the two tokens automatically.
Users can earn a share of the trading fees by depositing a pair of tokens into the LP (also known as "adding liquidity"). Users will receive an LP token, representing their share of the LP.

Tutorial: How to add Liquidity to a Pool?

  1. 1.
    Select "Import Pool" or "Create Pool"
2. Use the page filters and/or typing in the Tokens you wish to deposit
3. Enter the quantity and then select "Add Liquidity"
4. Review details and click "Confirm add liquidity"
5. Once confirmed in your wallet, you will see a "Successful" pop up.

Tutorial: How to Remove Liquidity from a Pool?

1. Simply head to the Pool you wish to remove tokens from and click "Remove Liquidity". Make sure to withdraw your LP if you have deposited it in a farm.
2. Choose the required amount of tokens to remove or use one of the preselected % buttons (the ratio of tokens needed will be automatically filled).
Please note: If you have deposited your LP/Pool tokens into a Farm, you will not be able to remove them from the Pool. You must remove the Tokens from the Farm first
2. Once you have selected the amount you want to remove, you will need to approve the transaction in order to remove the tokens.
3. Your wallet will provide you with a Confirmation requests.
Once completed you will have your tokens back in your wallet!