Provide Liquidity

Guide on providing and withdrawing liquidity from Kriya AMM Pools

Liquidity provisioning on a DEX helps ensure low slippage for traders on the platform and in return, the LPs get trading fee.

A quick guide on adding, tracking, and removing liquidity on Kriya Swap:

  • Head to https://app.kriya.finance/spot/liquidity. You can see the list of all pools available on Kriya. You can check the current pool TVL in dollar terms and the current APY estimated based on fee generated from rolling 7D average volume + rewards being added to incentivize the pool.

  • In the action column, you will see a '+' button, click on it to 'add liquidity' to the pool of your choice.

  • A side panel opens up. You can input the amount of the first token you want to LP (Dollar value and available balance shown below) and the amount of second token you would have to LP with it is auto-calculated.

  • Verify the values and sign the txn. Within a few seconds, your funds will be added in the pool and you can start generating yield instantly and permissionlessly.

  • Head https://app.kriya.finance/spot/portfolio (the 'Portfolio' option in the 'Spot' dropdown) You can see the pools you've LP'd in and the current dollar value of your holdings (inclusive of auto-compounded yield).

  • In the actions column you could choose to add more liquidity by clicking the '+' button. In case you want to exit a position, click on the '-' button. A similar side panel opens up. Select the dollar value you want to redeem (Total redeemable shown below).

  • Verify the values, sign the txn and you're good to go. Your portfolio page will be updated

This yield is not risk-free however, LPs are counterparty to every trade on the DEX and a sudden price change could cause impermanent loss.

We also offer boosted yields on certain pools via $SUI emissions and our own token emissions to ensure LPs are aptly rewarded for their initial contribution and they can earn stable passive income once liquidity stabilizes and volume on the DEX rises.

Here’s how the APY multipliers work:

We've introduced the concept of staked LP positions to incentivise longer deposit durations. Users can lock their liquidity for upto 4 weeks and recieve 4 times higher reward APY. Locked LP positions have get a weight multiplier during pool TVL share calculations.

To explain how this works we take an example:

Assume that the total TVL in a pool: 10,000 USD

2 Users LP equal amounts

LP position value: 1000 USD

User A stakes ‘flexibly’

User B stakes for ‘4 W’ ie 4 weeks

User A effective pool share: 1000 USD

User B effective pool share: 4000 USD

User A rewards: 1000/13000 * APY

User B rewards: 4000/13000 * APY

User B rewards = 4* User A rewards

This means User B receives a 4 times boost on his effective rewards APY by locking his stake for 4 weeks, compared to A’s flexible lock.

Withdrawing your LP Position

  • You can withdraw your LP position from the portfolio page, if the position is locked, it can only be withdrawn at the end of the locking period.

    Try it out here: https://app.kriya.finance/spot/portfolio

That’s all folks, it is actually that easy 🙌.

Happy yield farming 🧘‍♂️

Last updated