Heraswap Documents
  • Heraswap
  • Getting Started
  • FAQs
  • Contact Us
    • 🌐Official Channels
    • 💸Business Proposals
  • Common Errors
  • Technical Support
  • Features & Guides
    • Wallets & Funds
      • 📙Guide: Connecting Wallet
      • 📙Guide: Adding Funds
    • Token Swaps
      • 📙Guide: Swapping Tokens
    • Liquidity
      • 📙Guide: Adding Liquidity
    • Yield Farms
      • 📙Guide: Yield Farming
    • Mining Pools
      • 📙Guide: Staking Tokens
    • Exchange Analytics
  • Tokenomics
    • HERA
      • Tokenomics
      • Supply Control
  • CONTRACTS
    • Heraswap Contracts
Powered by GitBook
On this page
  • Liquidity Provider Tokens
  • Trading fees are paid to Liquidity Providers
  • Impermanent Loss
  1. Features & Guides

Liquidity

Acquire Liquidity Provider (LP) tokens and a share in the fees by contributing your tokens to a Liquidity Pool.

Liquidity Provider Tokens

For instance, if you contribute ONUS and HERA tokens into a Liquidity Pool, you will earn HERA-ONUS LP tokens.

The quantity of LP tokens you earn is based on your share of the HERA-ONUS Liquidity Pool.

You may also withdraw your liquidity to redeem your assets at any point in time.

Trading fees are paid to Liquidity Providers

Liquidity Providers get a share of the trading fees when individuals use their liquidity pool.

Every time a trader uses Heraswap, he's charged 0.25%, of which 0.05% goes into the Liquidity Pool of the traded swap pair.

You can also bring your LP tokens to Yield Farms while still earning your 0.05% from trading fees, making being a liquidity provider extra appealing.

Impermanent Loss

Providing liquidity is not risk-free. You may suffer an impermanent loss, which is why it's important to DYOR*.

*Do Your Own Research

PreviousGuide: Swapping TokensNextGuide: Adding Liquidity

Last updated 2 years ago