Providing standard AMM liquidity

Maki's liquidity pools allow anyone to provide liquidity by adding their assets to a pool.

How to add liquidity to a pool:

1. Navigate to the 'Liquidity' tab on the app and connect your wallet.

2. Select the tokens you wish to add to the liquidity pool. 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.

You should see a confirmation for the transaction. You should now be able to view your LP tokens in your wallet balance.

You have now successfully added to Maki's liquidity pool. If you wish to reclaim your tokens, simply click 'Remove Liquidity' and confirm the transactions.

That's it, you're now a liquidity provider on Maki!

Liquidity pool explanation:

When you add to a pool you will receive Liquidity Provider tokens (LP tokens). For example, if a user deposited $MAKI and $USDC into a pool, you would receive MAKI-USDC RLP tokens.

These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point.

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

• Previously, if there were 100 RLP 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• This means each LP token would be worth 1.00022 USDC and 1.00022 MAKI now when it is now withdrawn.

If you are unfamiliar with the concept of impermanent loss, reviewing this article for a basic understanding is highly recommended.