How does it work?
Adding liquidity to the $SQR token on PancakeSwap enables you to earn trading fees from the trades that occur within your liquidity pool. We currently have two available pools: $SQR/USDT and $SQR/WBNB. Here's how you can contribute to either pool:
Step 1: Connect Your Wallet
Visit PancakeSwap and click on the "Connect" button located in the top right corner. Choose your wallet provider (e.g., MetaMask, Trust Wallet) and follow the instructions to connect your wallet.
Connect Wallet
Choose Wallet
Switch Network
Step 2: Navigate to the Liquidity Section
With your wallet connected, click on “Trade” in the sidebar menu, then select “Liquidity”. Opt to “Add Liquidity”.
Liquidity Section
Step 3: Select Your Desired Pool
For the field 'CHOOSE TOKEN PAIR' you can choose either $SQR/USDT or $SQR/WBNB, depending on the pool you wish to join. And choose the Liquidity Pool.
Choose Token Pair
Step 4: Enter the Amount
Input the amount of USDT or WBNB you want to add to the pool. The system will automatically calculate the equivalent amount of $SQR required. Ensure there's enough BNB in your wallet to cover the gas fees.
Step 5: Approve and Supply
If this is your first time providing liquidity to this specific token pair, click "Enable $SQR" and confirm the transaction in your wallet. Repeat the process for USDT by clicking "Enable USDT". Then, click "Add" and proceed to Step 6.
Step 6: Confirm the Transaction
After clicking the "Add" button, a pop-up will appear for you to review the information. Click on the "Add" button again to proceed. Then, confirm the transaction in your wallet and wait for it to process, which may take a few moments.
Step 7: Check Your Liquidity Position
Once the transaction goes through, you can view your liquidity by going back to the “Liquidity” page. It will display your share of the pool and details of the assets you've provided.
Congratulations! You have now successfully added liquidity to the $SQR token on PancakeSwap, participating in either the $SQR/USDT or $SQR/WBNB pool, depending on your choice.
As a liquidity provider, you are eligible to earn a portion of the trading fees generated by the pool.
FAQs
Once approved, you can click on the “Lock LP Tokens” button and confirm the transaction from your wallet. You should now see a successful notification on the lot transaction completion. That is everything you need to do in order to lock your liquidity through the usage of a third-party service such as Mudra.
How do I add liquidity to a new token on PancakeSwap? ›
Add Liquidity
- Visit the Liquidity page.
- Click the “Add Liquidity” button.
- Using the top left Input, choose the two tokens in the trading pair you want to add liquidity. ...
- The interface will default to adding V3 liquidity with a few exceptions:
Once approved, you can click on the “Lock LP Tokens” button and confirm the transaction from your wallet. You should now see a successful notification on the lot transaction completion. That is everything you need to do in order to lock your liquidity through the usage of a third-party service such as Mudra.
How to check liquidity in PancakeSwap? ›
Liquidity Pools on PancakeSwap
- Find lisUSD Liquidity Pools: Visit PancakeSwap and go to Trade > Liquidity.
- Connect Wallet: Click Connect Wallet in the top right corner and choose your wallet.
- Add Liquidity: Click the Add Liquidity button.
- Select Tokens: Choose lisUSD and the pair you'd like to provide liquidity for.
To become a liquidity provider, you'll need to follow four steps:
- Choose a platform. The most popular DEXs include Curve, Balancer, Uniswap, PancakeSwap, and SushiSwap. ...
- Connect your crypto wallet. ...
- Select a pair. ...
- Add liquidity.
To add liquidity on Uniswap V3:
- Open the Uniswap web app. ...
- Select “New position”.
- Select the token drop-down.
- Select the token you want to add liquidity for. ...
- After selecting the first token, now select the second token. ...
- Select the second token you want to add liquidity for.
- Select the fee tier for your pool.
The ease with which a digital token can be converted into a digital asset or cash without affecting its price is referred to as liquidity in cryptocurrency. Liquidity in cryptocurrency reduces investment risk and, more importantly, aids in the development of an exit strategy, making it easier to sell your holdings.
Is providing liquidity on PancakeSwap worth it? ›
Liquidity Providers earn trading fees
Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool. Whenever someone trades on PancakeSwap, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on.
How do I know if my token liquidity is locked? ›
Search for the token with its name or contract address. In the token information, check Liquidity info. If it has a green padlock, that simply means the liquidity is locked, and it is safe to trade the token. You can view more information about lock percentage and duration by clicking on the lock.
How do you check the liquidity of a token? ›
To check the liquidity of a cryptocurrency, you can follow these steps:
- Volume on Exchanges: Look at the trading volume of the cryptocurrency on different exchanges. ...
- Order Book Depth: Analyze the order book depth on major exchanges. ...
- Spread: Check the spread between the buying and selling prices.
Trading volume is a key metric influencing liquidity. Higher trading volumes generally indicate a more liquid market. It signifies the number of units of a cryptocurrency traded during a specific period. Assets with substantial trading volumes are often more attractive to investors due to increased market activity.
Can you launch a token without liquidity? ›
On a decentralized exchange, liquidity correlates directly with the amount of tokens locked in a liquidity pool. If a token lacks liquidity, holders may not be able to sell their tokens when they wish. Many DeFi exchanges allow market makers to create multiple liquidity pools with various tokens.
How to sell a token with no liquidity? ›
A liquidity pool of zero means no liquidity provider wants to put up more funds for a pool - the only solution is to wait for a buyer who wants your coin.
How do I add liquidity to MinSwap? ›
Navigate to the Pool section: On the MinSwap dashboard, click on the “Pool” tab to access the liquidity pool options. Choose the liquidity pool: Select the liquidity pool you want to contribute to by clicking on the “Add Liquidity” button corresponding to the desired token pair.
How to add liquidity to a token Raydium? ›
You must add liquidity to the pool in the form of two tokens at a 1:1 ratio according to USD value. Enter the amount of the first coin you wish to add, the second coin will adjust to match a 1:1 ratio. Then click 'Supply'. You will then need to approve the transaction in your wallet.
What to do with liquidity tokens? ›
Liquidity providers deposit two token pairs into a liquidity pool. Once deposited, they can swap between their tokens and charge a small fee to users who use their tokens to swap.
