How To Provide Liquidity?

Learn how to become liquidity provider on SOY Finance!

Article published on Medium on 1st October 2021.

What is Liquidity on SOY Finance?

As a decentralized platform, SOY Swap’s design abandons the concept of an order book. Instead, users provide their funds to ensure liquidity. As an incentive, the liquidity providers earn “Liquidity Provider Tokens.”

This guide will show you how to provide, add, and remove liquidity to SOY Finance.

Note: To provide liquidity on a trading pair, it is necessary to have equal value in both pairs.

Important:

To make transactions on Callisto Network, it is necessary to have CLO coins to pay for the gas fee.

• To set up Metamask for Callisto Network, click here.

• To learn how to get started with SOY Finance, click here.

How To Provide Liquidity on SOY Finance

1. Navigate to SOY.Finance and click on "Launch SOY Finance.”

2. Select “Liquidity” in the top menu then click on “Add Liquidity”.

3. Choose the assets and the number of tokens you want to add to the liquidity pool. By filling one of the fields, the system automatically calculates the number of tokens needed for the other pair (153 CLOE here).

Once you are ready click on “Supply”.

Note: It is recommended to keep at least 1 CLO in your wallet to cover the transaction fees.

4. Verify the figures, if you are satisfied, click on “Confirm Supply.”

5. Confirm the transaction in the Metamask panel.

6. A message confirming the transaction is displayed, close it by clicking on “Close”.

7. Your transaction is confirmed! You can check its status by clicking “ View on Callisto scan”.

Removing Liquidity on SOY Finance

1. From the liquidity menu, select the pair you want to remove from the liquidity pool (CLOE/CLO in the example).

2. Click on “Remove.”

3. Specify the percentage of your liquidity you wish to remove. You can either choose it manually or click on a preset rate. Click on “Approve” to proceed with the next step.

4. Verify the figures, if you are satisfied, click on “Confirm.”

5. Confirm the transaction in the Metamask panel.

6. A message confirming the transaction is displayed, close it by clicking on “Close”.

7. Your transaction is confirmed, you can check its status by clicking “ View on Callisto scan”.