Provide Liquidity

Providing liquidity on Soroswap allows users to earn rewards by depositing two assets into a liquidity pool. Liquidity providers (LPs) facilitate asset swaps for other users, and in return, they earn a share of the trading fees collected by the protocol.

How to Provide Liquidity

1. Access the app Go to soroswap.finance and click Launch App.

2. Connect your wallet Use a Stellar/Soroban-compatible wallet. Make sure you have enough XLM for transaction fees.

3. Navigate to the Liquidity section In the app, select Liquidity to view existing pools

1. Deposit both assets

• Enter the amounts of each asset you want to deposit.

• The ratio must match the current pool price (or, when creating a new pool, you set the initial price).

1. Receive pool tokens After a successful deposit, you’ll receive pool tokens that represent your share of the pool’s liquidity.

Key Notes

• Initial liquidity providers set the initial price of a new pool.

• All liquidity pools follow the formula: x * y = k, where k is constant.

• Removing liquidity: You can withdraw your assets at any time by burning your pool tokens, receiving your share of the assets plus accumulated fees.

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📘 Need a full walkthrough? Check Adding Liquidity l Remove Liquidity