[Review] How to add Liquidity Provider(LP) token
Before staking or so-called farming in WardenSwap, you have to add Liquidity Provider(LP) token at prior. This article will show the process.
The ratio of LP pair is 50%:50%. That means, at the Best Rate Swap page, you have to swap so that the USD amount of the token is approximately equal. Once completing the swap, you can press top-row ribbon “Liquidity” as shown below.
Currently, the number of LP farms allowed to stake is as follows:
In this example below, we will demonstrate how to add LP of BUSD+WAD.
- At number 1 and 2 are the token that will be used to add LP token. Generally, the USD amount of token pair you have is unequal. The trick is that you can choose the lower-balance pair at the first row and the higher-balance pair at the second row. So that, insufficient token balance warning is not appearing. You can adjust the amount of both rows. They will be automatically recaluculated.
- At number 3, if you have never added LP token before, the window will show “Approve BUSD” and “Approve WAD”. You then have to press the buttons, allow signature, and pay for the gas fee. After completing the approval, you can press “Supply” button. The WardenSwap system will popup the window below to confirm supply of the LP token.
Once you press “Confirm Supply”, the system will show the following pop-up for paying gas fee. Then, you press confirm. Then, Transaction submitted window appears, you have to notice at the background. If the number of LP or token are added, you can close the transaction subbmited window. At the bottom of the page, the following window will also show.
If you want to remove LP tokens, you can also press “Remove LP tokens” bar here. The system will show the number of tokens once removed as follows:
Once, you completely check the preview page above, you can press “Remove LP Token” Due to impermanent loss, you may not receive the same amount of token pairs as you add in the first time. You should also understand the concept of impermanent loss.
We will introduce how to stake or farm the LP tokens in the next article.
Please feel free to join Warden Community Links at
- WardenSwap App: https://wardenswap.finance
- Warden Website: https://wardenswap.com
- Liquidity Pools Information: https://wardenswap.info
- Twitter: https://twitter.com/WardenSwap
- GitHub: https://github.com/WardenSwap
- Medium: https://medium.com/@wardenswap
- WardenSwap-Un Official: t.me/wadlounge
