Liquidity Provider
Providing Constant Product Liquidity
Garuda DeFi allow anyone to provide liquidity by adding their assets to the pool listed.
How to add liquidity to a pool :
Go to the " Swap" Page https://garuda-defi.org/swap
On the Swap Tab, click the “Provide” button
Choose the pool that you want to add to the liquidity, enter an amount on the first section, the other will be calculated and filled in automatically ( you must have the amount of both tokens in your wallet ).
Make sure you have enough $LUNC to pay the gas fees and click "Confirm Provide".
You will see your new liquidity position on the Trade section.
Liquidity pool explanation:
When you add to a pool you will receive Liquidity Provider tokens (LP tokens). For example, if a user deposited $GRDX and $LUNC into a pool, you would receive GRDX-LUNC ULP tokens.
These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point.
Every time a user swaps between $GRDX and $LUNC, a 0.50% fee is taken on the trade. 0.20% of that trade goes back to the LP pool.
Previously, if there were 100 ULP tokens representing 100 LUNC and 100 GRDX, each token would be worth 1 LUNC & 1 GRDX.
If one user trades 10 LUNC for 10 GRDX and another traded 10 GRDX for 10 LUNC, then there would now be 100.020 LUNC and 100.020 GRDX.
This means each LP token would be worth 1.00020 LUNC and 1.00020 GRDX now when it is now withdrawn.
Withdraw/Remove Liquidity
Go to the "Swap" page https://garuda-defi.org/swap
On the Swap tab, click the “Withdraw” button in
Enter the amount of LP tokens you want to withdraw. The both token for each pair will be calculated and filled in automatically
Make sure you have enough $LUNC to pay the gas fees and click "Confirm Withdraw".
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