# Liquidity providing FAQ

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<summary>APR</summary>

APRs (annual percentage rate) displayed on Maki are extrapolations of the pool and farm yield based on the daily (by default) or weekly or monthly performance.\
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The provided APRs serve as examples only, and it's important to note that previous performance does not ensure future profits.

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<summary>Where's the yield coming from? </summary>

APR displayed on pools:\
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The yield displayed on pools comes from the maker fees (fees paid for swaps going through the pool).\
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APR displayed on ecosystem farms:\
Include both maker fees and the farms' emissions.

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<summary>Can I withdraw my liquidity at any time? </summary>

Yes, you can redeem liquidity tokens for a proportional share of the pool at any time.\
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For standard AMM pools:\
If you staked your LP tokens in a farm, you'll need to unstake them first.

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## Traditional AMM pools

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<summary>What's the benefit of providing liquidity on Maki traditional AMM pools?</summary>

Liquidity providers earn transaction fees from swaps within the pool. Additionally, the Maki AMM market makes on the Open Book order book, with earnings from maker volume also returned to liquidity providers in the relevant pool.

When you add liquidity to a pool you will receive Liquidity Provider tokens (LP tokens) which represent your proportional share of the pooled assets. For example, if a user deposited $MAKI and $USDC into a pool, you would receive MAKI-USDC LP tokens.

Every time a user swaps within the pool between $MAKI and $USDC, a 0.25% fee is taken. 0.22% of that trade goes back to the LP pool. 0.03% of that goes to MAKI staking.

* Previously, if there were 100 LP tokens representing 100 USDC and 100 MAKI, each token would be worth 1 USDC & 1 MAKI.
* If one user trades 10 USDC for 10 MAKI, and another traded 10 MAKI for 10 USDC, then there would now be 100.022 USDC and 100.022 MAKI.
* This means each LP token would be worth 1.00022 USDC and 1.00022 MAKI now when it is now withdrawn.

Additionally, if there is a farm for the tokens you're LP-ing, you will be able to earn additional tokens.

If you are unfamiliar with the concept of impermanent loss, [reviewing this article](https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22) for a basic understanding is highly recommended.

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<summary>What are LP tokens?</summary>

Liquidity Provider (LP) tokens represent a proportional share of a liquidity pool. For instance, if you contribute to the SOL-MAKI pool, you will receive SOL-MAKI liquidity pool tokens (LP tokens). If you have deposited liquidity, you can see these tokens in your wallet.

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<summary>What are ecosystem farms?</summary>

Ecosystem farms are Maki's new permissionless farms for traditional AMM pools.&#x20;

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They further the decentralization of liquidity on Solana by enabling any project team or user to create a farm and bootstrap liquidity by offering reward emissions on any pool!

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<summary>How can I check how many days left of emission there are? </summary>

On the farm page, place your cursor on the token symbol under pending rewards to display the reward period. \
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The reward can be extended by the farm owner. However, it can not be shortened.&#x20;

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<summary>I can't find my LP tokens in farm</summary>

Have a look at the staked tab on the farm page. \
If you staked LP tokens before the release of Maki V2 in March 2022, access the V1 farm page by clicking 'Maki V1' at the bottom of the navigation bar. \
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If you can't still find them, reach out on the Maki discord or telegram for 24/7 support!

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<summary>Are my LP tokens staked in farms still earning fees? </summary>

Yes! the maker fees are directly compounded in the value of the LP tokens.

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## More

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<summary>Why did my transaction fail?</summary>

**Insufficient SOL:** SOL is required to pay network fees (gas), it's recommended to keep at least 0.05 SOL in your wallet to ensure smooth transactions.

**Slippage Tolerance:** Transactions will fail if the price of the underlying pool moves past your Slippage Tolerance. Try increasing your slippage tolerance on the Swap page.

**Approving Transactions:** If you see the “Making Transaction” notification in the lower lef&#x74;**-**&#x68;and corner of your screen, you will need to approve the transaction in your SPL wallet.

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<summary>Your question is not answered in this FAQ?</summary>

No worries, you can join the Maki discord or telegram for 24/7 support! Community managers will be more than happy to help answer questions.

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