How to add liquidity to the pool

Access liquidity pools on Scopuly:

Find the “Liquidity Pools” section:

• Go to the Scopuly website and click on the “Liquidity Pools” tab. Alternatively, you can directly access a list of pools at this link “Liquidity Pools”.

  

Selecting a liquidity pool:

Before you begin adding liquidity, it is important to select a pool that meets your goals.

Consider the following factors:

• Trading volume: Pools with higher trading volume typically offer higher potential rewards. Higher volume means more frequent trades within the pool, which can result in higher fees and potential distribution as compensation to liquidity providers.

• Fees: Note any fees associated with adding and removing liquidity from the pool. These fees may be related to network operation or pool maintenance. Understand the fee structure before placing your assets.

• Fees (APY): Some pools offer fees for providing liquidity, displayed as an annual percentage yield (APY). Examine the fee structure to understand the potential returns. Keep in mind that APY can be variable and is not guaranteed.

• Impermanent Losses: Liquidity providers are subject to impermanent losses that can occur if the price ratio between two tokens in the pool changes significantly after you contribute. Research this concept before adding liquidity to understand the potential risks.

  

Selecting the right pool:

• Click on the desired asset pair to open a new page with detailed information about the specific liquidity pool.

Initiating a liquidity deposit:

• Locate and click the “Deposit” button on the liquidity pool page.

  

Entering your deposit:

• Select the account from which you want to take action.

• You will see special fields to enter the amount of token you want to contribute to the pool.

  

Transaction Review and Confirmation:

• Review the details carefully. And click “Ok”.

  

Receive liquidity pool shares:

• After a successful contribution, you will receive Liquidity Pool (LP) tokens representing your share in the pool. These tokens reflect your share of the pool’s assets.