Liquidity

Contribute token pairs to earn passive income through trading fees

Liquidity on BeeDex

The Liquidity feature on BeeDex enables users to provide liquidity to token pairs on the Loop Network. By doing so, users earn a share of the transaction fees generated by trades within the pool. This not only facilitates token swaps for other users but also offers an opportunity for liquidity providers to earn passive income.

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Why Liquidity is Important

1. Facilitates Token Swaps: Liquidity pools ensure there is enough supply of tokens to execute seamless trades without relying on centralized order books.

2. Earn Fees: Liquidity providers (LPs) earn a percentage of the trading fees proportional to their share in the pool, creating a passive income stream.

3. Supports the Ecosystem: Providing liquidity encourages trading activity and supports the health and growth of the Loop Network ecosystem.

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Add Liquidity

Adding liquidity to BeeDex is simple and rewarding. Here's a detailed step-by-step guide:

1. Navigate to the Liquidity Page

   • Open BeeDex and click on the Liquidity tab.

2. Choose "Add Liquidity"

   • Select the Add Liquidity option.

3. Select the Token Pair

   • Choose two tokens you wish to provide liquidity for.

   • If the token pair doesn’t exist yet, BeeDex will create a new liquidity pool for it.

4. Enter Token Amounts

   • Enter the amounts for both tokens.

   • The ratio of the tokens must match the pool’s current ratio (or the initial ratio for a new pool).

5. Review Pool Details

   • Check the following:

     • Your share of the pool.

     • The token amounts you are depositing.

     • Fees or slippage (if applicable).

6. Approve and Add Liquidity

   • Click Approve for both tokens in your wallet to authorize BeeDex to use them.

   • Once approved, click Add Liquidity and confirm the transaction in your wallet.

7. Receive LP Tokens

   • After the transaction is confirmed, you will receive Liquidity Provider (LP) tokens in your wallet.

   • These LP tokens represent your share of the liquidity pool and are required for withdrawing liquidity.

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Remove Liquidity

When you decide to withdraw your liquidity from a pool, follow these steps:

1. Navigate to the Liquidity Page

   • Open BeeDex and go to the Liquidity tab.

2. Choose "Remove Liquidity"

   • Select the Remove Liquidity option.

3. Select the Liquidity Pool

   • Choose the pool from which you want to withdraw liquidity.

   • You must hold the corresponding LP tokens in your wallet.

4. Enter the Amount to Remove

   • Specify the percentage or amount of your liquidity share to withdraw.

5. Review Withdrawal Details

   • Check the following:

     • The tokens you will receive (both tokens in the pair).

     • Any fees earned during the time your liquidity was provided.

6. Approve and Remove Liquidity

   • Click Approve to allow BeeDex to use your LP tokens.

   • Once approved, click Remove Liquidity and confirm the transaction in your wallet.

7. Receive Tokens and Fees

   • After the transaction is confirmed, your original tokens (and any fees earned) will be sent back to your wallet.

Benefits of Providing Liquidity on BeeDex

• Earn Passive Income: Generate returns through trading fees.

• Support Market Activity: Your liquidity enables seamless token swaps for other users.

• Flexible Management: Easily add or withdraw liquidity anytime without restrictions.

Providing liquidity on BeeDex is not only a way to earn passive income but also an essential contribution to the DeFi ecosystem. Whether you're adding liquidity, managing your portfolio, or withdrawing funds, BeeDex makes the process seamless, secure, and rewarding.