Learn about adding/creating liquidity to token pairs on the Phenix DEX
Liquidity refers to the availability of assets to be bought or sold in a market without causing significant price movements. In a decentralized exchange, liquidity is provided by individuals who add their assets to a pool, making them available for others to trade. The more assets are added to a pool, the higher the liquidity of that particular token becomes, making it easier and faster to execute trades without affecting the price. High liquidity in a decentralized exchange is crucial for ensuring smooth and efficient trading.
Adding, creating, or removing liquidity on Phenix DEX is effortless and straightforward. The "Liquidity" page provides you with the option to choose the tokens for which you wish to create or add liquidity. Simply select the two tokens and enter the number of tokens you want to add. After approving the token transfer, you will receive PHENIX-LP Tokens, which represent your share in the chosen token pair's pool. You can view your liquidity token balance in the "Your Liquidity" section and choose to remove your liquidity to receive the exact tokens back.
Figure 1: Adding/Removing Liquidity UI
Enhance your trading experience and earn rewards with Phenix DEX. By providing liquidity for token pairs, you're supporting seamless trading for all users. Enjoy a generous 0.10% of all trades returned to you, proportional to your share in the liquidity pool. By adding your tokens to our DEX's liquidity pools, you'll not only support the platform but also earn passive income from trading fees. And, the best part - you can easily remove your tokens at any time, without incurring any fees. Maximize your token potential with Phenix DEX today!