Provide Liquidity

Users can provide liquidity for any outcome of their choice. Liquidity providers (LP) will earn a proportion of the fees generated from trading that outcome.

First, visit any market, select an outcome and mint outcome tokens.

On each outcome there will be an Add liquidity button. Click on it.

For market that does not have liquidity, you will be directed to the Swapr site.

For market that already had liquidity, a popup will appear. Click on Open to be directed to Swapr as well.

On Swapr, check if the selected pair is correct. Normally, you would want to provide liquidity in sDAI. However, in conditional markets, both tokens will be outcome tokens (one is the conditional outcome token, and the other is the parent outcome token).

To provide liquidity for a pair of tokens, you must hold both tokens.

After this, click on Set initial price.

Set an initial price for the pair. This number will later be used to determine the corresponding amount of each token in the pair you need to provide. If there is an USD price for each token in the pair, this can be calculated automatically for you.

After this, click on Select a range.

Swapr is based on the concept of concentrated liquidity, which allows users to provide their tokens as liquidity for trading within a specific price range. Liquidity providers earn their fee share only within this active liquidity range. This approach can be useful for concentrating your capital on prices you believe will be most actively traded, enabling you to effectively earn more per unit of capital.

If you're unsure about this, click the Full Range button on the right.

After this, click on Enter amounts.

Here, Swapr will calculate the token ratio based on the initial price and the selected price range. You must provide both tokens in the correct ratio.

Check if you have approved to send tokens to Swapr yet and click Approve if haven't.

After approving, click on Add liquidity to add liquidity to the pair.

Once the transaction is confirmed, you are now a liquidity provider (LP) on Swapr. You can review your position on https://v3.swapr.eth.limo/#/pool.