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:
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.
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.
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!