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Liquidity Pools

Liquidity Pools are the lifeblood of the KalySwap DEX. By adding liquidity, you enable others to trade while earning fees on every swap made through that pool.

Pools Interface

What is Liquidity?​

Liquidity involves depositing an equal value of two tokens (e.g., KLC and USDT) into a pool. In return, you receive LP (Liquidity Provider) Tokens, which represent your share of the pool.

Providing Liquidity​

  1. Navigate to the Pools Page.
  2. Click "Add Liquidity".
  3. Select the Token Pair you wish to deposit (e.g., KLC + ETH).
  4. Enter the amount for one token; the UI will automatically calculate the required amount for the other token to match the current market price ratio.
  5. Approve the tokens if necessary.
  6. Click Supply and confirm the transaction.

Your Rewards​

Liquidity providers earn 0.25% of all trades that occur in their pair. These fees are added back into the pool, meaning the value of your LP tokens increases over time.

Removing Liquidity​

You can withdraw your assets at any time:

  1. Go to your active pools on the Pools page.
  2. Select "Remove Liquidity".
  3. Choose the percentage you want to withdraw (e.g., 100%).
  4. Sign the transaction to burn your LP tokens and receive your original assets plus any accrued fees.

[!WARNING] Impermanent Loss: Providing liquidity carries the risk of impermanent loss. This happens when the price of your deposited tokens changes compared to when you deposited them. The greater the divergence, the greater the impermanent loss.