🟢Providing Liquidity

Before you start

Liquidity providers on Xfai can provide liquidity to specific pools in exchange for liquidity tokens. Liquidity token holders accumulate fees every time a trade goes through the pool, in which the liquidity tokens were minted from. Even though Xfai uses a two-sided liquidity provisioning approach, the minted liquidity tokens are pool specific. That is, the first pool selected (the upper box) from the user interface represents the primary pool, i.e. the pool where the liquidity tokens get minted from. The second pool (the lower box) in the user interface represents the secondary pool, and can be any token that is hosted on Xfai.

If you are interested in understanding the conceptual aspects of liquidity provisioning on Xfai, visit the Pools section.

How to provide liquidity on Xfai

Xfai enables users to provide liquidity to any pool. To provide liquidity on Xfai:

  • Make sure that you are on the Liquidity tab of the Xfai app and have your wallet connected. For more details on how to connect your wallet, check this guide.

  • Select the primary token that you wish to provide.

  • Specify the desired amount for the primary token, or for ether.

  • Allow Xfai to use the selected primary token.

  • Click on the Add Liquidity button.

  • Review the liquidity provisioning information and click on the Confirm button.

  • Once the transaction is accepted, click on the Done button to get back to the app.

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