How to Add/Remove Liquidity
Liquidity is at the core of GroFi Dex's functionality. You can contribute liquidity for any token pair by staking both tokens through the Liquidity page.
In return for adding liquidity, you'll earn trading fees for that pair and receive either an NFT or LP Tokens, which you can then stake in Farms to earn U2U rewards!
Add Liquidity
To provide liquidity, you'll need to commit an amount of any token pair you prefer. The lower value (in USD) of the two tokens will determine the limit of liquidity you can provide.
If you require any tokens, you can easily trade for them. Feel free to refer to our How to Trade on GroFi Dex guide if needed.
In this example, we will demonstrate adding liquidity using U2U and USDT.
Step 1: Visit the Liquidity page.
Step 2: Click the âAdd Liquidityâ button.
Step 3: Select 2 tokens to determine the trading pair for adding liquidity. For instance, in this demonstration, we'll choose U2U and USDT.
Step 4: The interface will automatically select the most popular trading fee tier and set the price range for you.
Step 5: You can confirm the version and fee tier of the liquidity pool you are providing by checking the "LP - x% fee tier" displays.
If you wish to customize the fee tier, simply click on "More" and select your desired option.
Please note that it's typically recommended to provide liquidity to the most popular fee tier.
Step 6: You can review and confirm the displayed price range on the right-hand side.
The chart displays liquidity levels across various price ranges. You can use the magnifier buttons to zoom in and out, and navigate the chart by dragging the bottom x-axis.
If you wish to customize the price range, you can simply drag the handles, use the + and - buttons on the two prices, or manually enter the desired price numbers.
Although not recommended, you can provide liquidity across the entire price range by clicking the âFull Rangeâ button.
Step 7: Enter an amount for one of the tokens in the âDeposit Amountâ field. The corresponding amount for the other token will be calculated and filled automatically. If one of the tokens doesn't have a sufficient balance, an error will be displayed, and the button will be greyed out.
Please enter a lower amount to proceed or use the âMAXâ button to fill in the maximum available value.
Step 8: Click the âEnable USDTâ button. If you are adding liquidity against tokens other than U2U, you might need to click enable twice for each token in your pair. Your wallet will prompt you to confirm the action.
Step 9: Afterward, the âAddâ button will become active. Click it to proceed.
Step 10: A new pop-up window will appear, allowing you to preview your liquidity position. If everything appears correct, click âAddâ again to proceed.
Step 11: Your wallet will prompt you to confirm the transaction. Proceed by confirming the transaction from your wallet.
Step 12: After that, you'll find your new liquidity position on the âMy Liquidityâ page. You can view its details by clicking on the position.
Remove liquidity
Step 1: Visit the Liquidity page.
Step 2: Select the liquidity position you wish to remove from âYour Liquidity". You can utilize the filter to conveniently locate all liquidity positions.
Step 3: Click âRemoveâ. A new window will appear.
Step 4: Use the buttons or slider to select the amount of liquidity you wish to remove. Choose âMAXâ to remove all liquidity from this pair.
Step 5: Click âRemoveâ to proceed.
Step 6: A window will appear displaying the number of tokens you will receive. Click âRemoveâ once more. Your wallet will then prompt you to confirm the action.
Step 7: After the transaction is confirmed, you will receive two tokens from your pair. If you haven't removed all of your liquidity, your remaining liquidity value will be updated on the liquidity page.
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