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🥭SwapX-V3 Liquidity Pool

💰 Providing Liquidity​

Liquidity is the core mechanism that drives all trading on SwapX. By providing liquidity, you stake a token pair into a liquidity pool, which facilitates token swaps and allows you to earn a portion of the trading fees for that pair.

💧 Liquidity Fee Structure​

The default trading fee for token swaps within the SwapX-V3 Liquidity Pool Protocol is 0.3%. This fee is entirely distributed to the Liquidity Providers (LPs) based on their contribution to the liquidity reserves.

LPs can choose from the following three fee tiers when adding liquidity:

Fee TierUse Case Recommendation
0.05%Stablecoin pairs (e.g., USDC/USDT)
0.3%Default - Standard pairs (e.g., ETH/USDC, XOC/USDH)
1%Exotic or non-correlated pairs

💡 Best Practice: It is always recommended to provide liquidity in the most popular fee tier for the chosen token pair to maximize trading fee returns.

➕ How to Provide Liquidity​

To provide liquidity, you need to stake a certain amount of a token pair.

  • The minimum (USD value) of the two tokens will determine the maximum liquidity you can provide.
  • Example: We will use XOC and USDH to demonstrate the process.

Step-by-Step Guide

1. Access the Pools Page 🌊

  • Navigate to the Pools page on SwapX.
  • Click the "Connect Wallet" button in the top right corner.
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2. Start Adding Liquidity 🛠️

  • Click the "Create" button (or "Add Liquidity") to start the process.
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3. Select the Token Pair 🪙

  • Use the input fields to select the two tokens for which you wish to provide liquidity.
  • Example: Select XOC and USDT.
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4. Confirm/Customize Fee Tier 💲

  • If needed, select the desired fee percentage from the available options: 0.05%, 0.3%, or 1%.
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5. Enter Deposit Amounts and Set Price Range 📐

  • Under "Deposit Amount," enter the quantity for one of the tokens. The amount for the other token will be automatically calculated to maintain the current market ratio.

  • Set Price Range: For the concentrated liquidity model (SwapX-V3), you must set a "Price Range." This range defines the specific bounds within which your liquidity is active.

    • Error Check: If the current market price of the pair falls outside the range you set, the system will prevent submission and display an error.
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❗ Insufficient Balance: If you have an insufficient balance of one token, you will see an "Insufficient Balance" error. Reduce the input amount or use the "MAX" button to populate the maximum available value.

6. Confirm Creation ✅

  • Review all the entered information, including deposit amounts and the price range.
  • Once verified, click the "Create" button.
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7. Final Wallet Confirmation 📲

  • Your wallet will prompt you for a final transaction confirmation.
  • Please confirm the transaction within your wallet interface.
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8. View Your Holdings 📊

  • Shortly after the transaction is confirmed, you will see your new liquidity position on the "My Holdings" tab of the Pools page.
  • Click on the position entry to view its detailed information.
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