Each liquidity pool consists of reserves of two ERC-20 tokens, and issues an ERC-20 pool token as a proof of proportional ownership of the underlying reserves;

  • Pool token holders are entitled to receive the swap fee paid by users who swap through their liquidity pools;
  • The swap fees will first go into the reserves of the respective liquidity pools. Users will receive their proportionate share when they return the pool token to redeem their share of reserves;

To start adding liquidity and earn swap-fee sharing:

  1. Connect your decentralized wallet to DeFi Swap
  2. Go to [Pool] tab
  3. Click [Add Liquidity]
  4. Select both of your input tokens from the supported token list
  5. Enter the input amount in either one of the selected input tokens
  6. See the other input amount auto-populated accordingly
  7. Review the prices and pool share info
  8. Click [Approve]
  9. See the “Approve Allowance” screen on your connected wallet and tap [Approve]
  10. Once the approved transaction is confirmed on-chain, click [Supply]
  11. See the “Confirm Transaction” screen on your connected wallet and tap [Confirm]

You will then see the transaction is submitted and you can follow the confirmation status by clicking [View on Etherscan].

After the transaction is confirmed, you will also receive liquidity tokens which represent the share of pool supplied and underlying collateral that can be redeemed anytime.

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