Liquidity

Add liquidity to receive Liquidity Provider (LP) tokens

In addition to trading tokens, users can also add liquidity to the Crodex itself by contributing equal amounts of two tokens (a token pair) to create liquidity provider (LP) tokens.

There are two main ways that Crodex users can earn rewards after adding liquidity:

Liquidity Mining

When users create an LP token and hold it in their wallet, they start earning swap fees (Liquidity Mining). Every transaction that uses the liquidity combination provided by users takes a small fee, that is divided proportionally between all LP token holders.

LP Stake Reward Pools

Crodex users can also choose to stake their LP tokens in our "LP Stake Reward Pools" to earn $CRX rewards. LP tokens staked in Reward Pools continue to earn swap fees.

LP tokens are native to a special DEX and can not be used to earn swap fees or staking rewards on other DEXs. Only LP tokens created on Crodex can be used for earning rewards on Crodex.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

How to add liquidity?

Step 1. Click "Trade" in the navigation bar and open the Liquidity tab.

Step 2. Click "Add Liquidity".

Step 3. Select the tokens of your liquidity pair. You can search by token name or contract address, or select from the list.

Step 4. Enter a token amount on one of the lines, you can also click on "MAX" to max out. The other line will be automatically calculated for you to keep the pair amounts equal in USD. If this is your first time adding liquidity for a token, you may have to "Approve" the token in your wallet.

Step 5. When you're happy with the amount, click "Supply".

Step 6. Trading screen will pop up asking for confirmation to Supply, click "Confirm Supply" .

Step 7. Validate the transaction in your wallet.

Done, you are now earning your share of Swap Fees generated by the Liquidity Pool!

In return for supplying tokens to a liquidity pool, you will receive a "LP Tokens" you might be able to use this tokens in one of our "LP Stake Reward Pools" to earn extra reward (on top of the swap fees) in the form of $CRX tokens.

If you are the first user to add liquidity for a pair of two tokens, you may add liquidity at whichever rates you'd like. In this situation, please check the rates at which you intend to add versus the broader market rates.

It is possible to add liquidity at rates that are not equal to the rest of the market and immediately lose money due to arbitrage, so make sure you check your prices!