How to provide liquidity on Algebra

To provide liquidity to an existing pool, there are a few steps to take:

1. Connect your wallet.

\==Click connect wallet SWAP==

2. Open the Pool page.

\==open the pool page LIQ GHST==

3. Press the “+ New position” button on the Pool page.

4. Select a pair of tokens to participate in the pool with.

\==select a pair LIQ PRO==

If you want to add a new coin, you can simply paste the address.

5. Specify the range where you want to deploy your liquidity.

\==specify the price range LIQ PRO==

The next step is to choose a price range, meaning the minimum and maximum prices that you expect your position to move within. This gives you two choices: to provide liquidity across the full range, so you spread your assets thin with lower rates of return but no potential fall out of the range; or narrow your range according to the market’s state and development.

If you provide liquidity for an already existing pair, the app will auto-select the Min/Max prices based on the current price.

Based on our experience and statistics, users most often set an approximate range — ± 30% of the current price for the Min & Max Price.

Note that the dark gray areas on the below graphic illustrate how other LPs have spread their liquidity.

Important to understand: Your capital is essentially multiplied when the price is within the range you’ve chosen. When the price falls out of those ranges, two major things happen: you stop earning fees, and your liquidity is turned into a single asset.

6. Deposit Amounts

Next, you need to decide how many assets to contribute and enter a value in one of the boxes. Another box will be filled automatically according to the market price and selected price range.

7. Check the estimated amount of the second token and make sure there’s enough of it in your balance

\==deposit amounts and check second token LIQ PRO==

8. Approve & Add Liquidity

\==add liq and press confirm LIQ PRO==

Now, you’re at the finish line. All you have left is to approve tokens transfer, confirm the transaction, and click Add to trigger the transaction in your wallet.

Here you are, providing liquidity to Algebra traders and making your money work for you! You can find all the necessary information to monitor and manage your position on the Pool page.

To put it short:

1. Connect your wallet.
2. Open the Pool page.
3. Select a pair of coins or tokens participating in the pool.
4. Specify the range where you want to deploy your liquidity.
5. Enter the deposit amount.
6. Approve and Add Liquidity.