Providing Liquidity
How to provide liquidity on Sumero
Last updated
How to provide liquidity on Sumero
Last updated
This guide will walk you through the steps to provide liquidity via the Sumero app.
The first step is to navigate to the Pool page.
From the pool page, select the 'Provide' tab.
From the toggle list in the Asset field, select the asset you wish to pool with USDC. You may wish to consider factors such as total value locked (TVL), trading volume, and your assessment of the risk that the token prices of the USDC-ASSET pair you have selected diverge in the future.
In the asset input field, enter the amount of the selected asset you want to contribute to this position. USDC and the selected asset must be deposited in a 50/50 ratio in order to maintain equilibrium within the pool. In order to simplify this calculation, the corresponding amount of USDC required to open the position will be automatically populated.
When you are finished reviewing the respective pool trading fees, you are ready to submit the transaction. First, you may need to approve the Sumero router contract to allow the protocol to spend both of the selected tokens on your behalf. This is only necessary the first time you provide liquidity for each token.
Once this spend approval transaction has been confirmed, click 'Provide Liquidity' to trigger the transaction in your wallet.
Sign the corresponding transaction in your wallet.
Congrats! Once this final transaction has been signed and confirmed, your assets will be providing liquidity to SumSwap traders and your position will begin earning fees. You can monitor and manage your position on the Sumero Dashboard page.
