How do I calculate my swap fee-sharing earnings from adding liquidity to the pool?

Earnings from swap-fee sharing are added directly into the total liquidity pool after a trader paid for the swap fees. No new tokens are minted from this process, so it has the effect of increasing the value of your pool token.

You can view your added liquidity pool info and earnings by going to the [Pool] tab -

  • Your pool tokens will remain the same but increase in value over time

  • Your pool share and pooled tokens will vary depending on the corresponding liquidity pool swap & pool activities

You can remove your liquidity at any time and this will also withdraw the corresponding portion of swap-fee sharing by returning your pool tokens. But as soon as liquidity is removed, your pool share will decrease accordingly and the corresponding swap-fee sharing as well.

E.g. I have added liquidity to the CRO/ETH pool initially with 50 CRO and 0.0215 ETH and received 0.00001039 CRO/ETH pool tokens. As the total number of pool tokens at that time is 0.00025781637 my CRO/ETH pool share was 4.03%

As of today, when I check my added liquidity pool information, since more LPs have added liquidity to the CRO/ETH pool, my pool share is now almost negligible (close to 0%) while the quantity of my pool tokens remains unchanged.

Swapping by users will cause the change of ratio between the number of CRO and ETH in the pool. The quantity of tokens at which you withdraw from the pool depends on the total quantity of individual tokens and my pool share at the time of withdrawal.

My earnings can be calculated by comparing the current market value of the CRO and ETH I receive at withdrawal by the original market value of the CRO and ETH I deposited, as well as the gas fee involved in the deposit and withdrawal processes.

How do I add liquidity to DeFi Swap?

Each liquidity pool consists of reserves of two ERC-20 tokens, and issues an ERC-20 pool token as 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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