Providing Liquidity
How to provide liquidity on MIMSwap and earn trading fees
Last updated
How to provide liquidity on MIMSwap and earn trading fees
Last updated
To provide liquidity on MIMSwap, go to abracadabra.money and launch the app. This will take you to our community deployed and maintained interface.
From here, hit the MIMSwap button, available at the top of the page on desktop or in the side panel on mobile, then hit the Deposit button on the top of the page.
This is the main section of the Liquidity Provisioning positioning page. It shows the following information:
The mode (Deposit | Remove)
The deposit type (Deposit | Stake)
The two tokens of the pair
The pool ratio between the 2 assets
The current liquidity provided (TVL)
To supply liquidity, you need to provide the assets in the current Ratio (in this example, you'll provide 76% of MIM and 24% of USDB). You can learn more about this ratio in the MIMSwap page Inputing an amount of any of the 2 tokens will automatically fill out the other asset's amount according to this ratio. If you only have one of the 2 assets, you can use the swap function to get to the good ratio. Follow the Swap Guide to know how to.
Once you've inputed the amounts you want to provide, you'll be able to go ahead and provide liquidity.
You might be required to approve the 2 assets on MIMSwap before providing liquidity, the UI will guide you through the process.
Once all tokens are approved and you're happy with the amounts you're providing, you can click deposit to start providing liquidity.
MIMSwap will transfer your tokens into the pool and give you MagicLP tokens, an IOU token representing your share of the pool. These tokens can be used in DeFi, be staked for further rewards, and finally used to get back your share of the pool.
To gain further rewards, you can stake your liquidity in MIMSwap. You'll need MagicLP tokens for this part, so go ahead and deposit some liquidity if you haven't done so already. To do so, you'll stake your MagicLP tokens. Click on the stake button to access the staking menu.
Here, you'll be able to stake your tokens for further rewards and even lock them to increase those rewards.
On Blast, you'll get the Founder Boost for locking your LP tokens, this is only available for a short amount of time and might not be possible at the time of reading.
Use the lock switch to toggle it on if you want to lock your tokens for 3 months, or leave it off if you're not interested in those extra rewards. Then, simply approve and stake and you're done!
If you want to exit the farm, or exit your liquidity provisioning position entirely, you'll need to get your LP tokens back. If you're not locked, or if the lock is over, access the Unstake section within the remove portion of the interface.
From here, you'll be able to select how much you want to unstake and then confirm. This will send the MagicLP tokens back to your account from the farm; and you'll be able to redeem them for your share of the pool.
To remove liquidity, access the remove section of the Remove menu.
From this menu, you'll be able to see you MagicLP tokens, and what they correspond to in term of underlying tokens. Select how much you want to remove and hit the Remove button to withdraw your liquidity. You may need to approve the spend of your magicLP tokens first.
When withdrawing liquidity, you're removing your share of the liquidity and getting back the 2 tokens at the current rate of the pool. This rate may be different from the time you provided liquidity as the markets shift towards one or the other asset.
