🌊Liquidity
Be the provider you want to see in the world.
Last updated
Be the provider you want to see in the world.
Last updated
Liquidity pools on XP.FUN allow users to provide assets to the platform, facilitating trading while earning APY. By contributing to liquidity pools, you play a crucial role in the ecosystem and are rewarded accordingly.
XP.FUN uses the classic x*y=k formula for its Automated Market Maker (AMM), similar to Uniswap v2. This model ensures that the product of the reserves (x and y) remains constant (k) during swaps, maintaining balance in the pool.
Add Liquidity: You can provide equal values of two tokens (e.g., ETH and an ERC-20 token) to a liquidity pool.
Receive LP Tokens: In return, you receive Liquidity Provider (LP) tokens representing your share of the pool.
Earn APY: Every time a trade occurs in the pool, $ETH is collected and distributed among liquidity providers.
XP.FUN introduces a unique $ETH Bonus model that benefits all participants in the ecosystem:
Total Swap Fee: A custom fee paid exclusively in native ETH is charged on each swap.
50% to Protocol/Liquidity Providers:
Liquidity Providers: Earn a share of 50% of the fees proportional to their contribution to the pool.
Incentive: Encourages users to provide liquidity and maintain healthy pool balances.
25% to $XP Single-Sided and LP Stakers:
$XP Stakers: Users who stake $XP tokens (either single-sided or in the $XP-ETH LP pool) receive a portion of the $ETH.
Benefit: Rewards $XP holders and incentivizes long-term commitment to the platform.
25% to the XP.FUN Team:
Development and Growth: Supports ongoing development, platform improvements, marketing efforts, and operational costs.
Sustainability: Ensures the platform can continue to evolve and provide value to its users.
Suppose a swap incurs a fee of $10:
Protocol/Liquidity Providers: Receive $5 in ETH.
$XP Stakers: Receive $2.5 in ETH.
XP.FUN Team: Receives $2.5 in ETH.
As a liquidity provider:
Proportional Earnings: Your earnings from fees are proportional to your share of the total liquidity pool.
Claiming Rewards: Fees accumulate in real-time and can be claimed at any time.
Impermanent Loss: Be aware of the risks associated with providing liquidity, such as impermanent loss due to price fluctuations.
XP.FUN implements several features to protect liquidity providers and investors:
Delayed Liquidity Withdrawal (5 Days): Prevents rapid rug pulls by developers, enhancing investor confidence.
Sustainable Growth: By focusing on transaction volume over short-term price action, the platform promotes long-term sustainability.
Connect Your Wallet: Ensure your wallet is connected to XP.FUN on Ethereum Mainnet.
Navigate to the Liquidity Section: Go to the "Liquidity" tab on the platform.
Select Tokens: Choose the token pair you wish to provide liquidity for (e.g., ETH and an ERC-20 token).
Enter Amounts: Input equal values of both tokens.
Approve and Supply: Approve the tokens if required and confirm the supply transaction.
Receive LP Tokens: After the transaction is confirmed, you'll receive LP tokens representing your stake.
Flexible Withdrawal: You can remove your liquidity at any time after 5 days of providing.
Collect Earnings: When you withdraw, you'll receive your initial tokens plus any earned fees.
Earn Passive Income: Collect fees generated from trading activity in the pools you contribute to.
Support the Ecosystem: Your participation enhances liquidity, reduces slippage, and improves the trading experience for all users.
Participate in Fee Sharing: Benefit from the platform's unique fee distribution model.
Providing liquidity on XP.FUN is a straightforward way to earn rewards while supporting a decentralized trading ecosystem. By aligning incentives through a fair fee-sharing model, XP.FUN ensures that liquidity providers, $XP stakers, and the team all benefit from the platform's growth.
Join us in reshaping the future of decentralized finance. Provide liquidity today and be part of the FUN!
