Position Exchange

<h2 id="header-0">Benefits Concentrated Liquidity Brings about</h2><ul><li>Liquidity concentration improves the pool’s capital efficiency</li><li>It allows LPs to approximate their preferred reserves curve, while still being efficiently aggregated with the rest of the pool.</li><li>You can add or remove liquidity whenever you want.</li><li>In case you decrease all liquidity out of Liquidity NFTs, your NFTs still exist. This means you do not need to open new NFTs with high costs to add the same token later.</li><li>It helps to decrease your impermanent losses. The limited range means you earn fees if the market price is within your selected range. In this new system, the key to optimizing returns is that liquidity providers will need to update their price ranges according to the price changes in a volatile market. You can change the price range anytime you think you should</li></ul><h2 id="header-1">Add liquidity</h2>Now, on Concentrated Liquidity you can concentrate your liquidity within a particular price range based on your personal market view. You will receive a Liquidity NFT corresponding to each Liquidity Pair token that you deposit.Adding liquidity to enjoy fee revenue on Position Exchange is never too complex. Let’s follow the below simple steps.Step 1: Connect walletAccess the Liquidity section on Position Exchange and connect your wallet<img src="https://academy-public.coinmarketcap.com/optimized-uploads/2c24e1c2c6994b54bec8c619215e2fd3.png" />Step 2: Choose pairClick Add Liquidity button and select a pair of tokens you wish to provide as liquidity<img src="https://academy-public.coinmarketcap.com/optimized-uploads/e9779ee422e74fef88cb07715c922d0f.png" /><img src="https://academy-public.coinmarketcap.com/optimized-uploads/6fe58259be0c4e1ead5abdea08472901.png" />To decide which pair of token to deposit as liquidity, you may consider factors such as TVL, trading volume, and your evaluation of the risk that these token prices diverge in the future.Then click Approve [token] button to finish choosing.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/d5ff10ff719e497cab0b2ec2fbf11860.png" />Step 3: Select the price range and fill in the amount<img src="https://academy-public.coinmarketcap.com/optimized-uploads/e160d7ee19c84ac1b4e5557572cacda0.png" />You need to choose the price range you want to provide liquidity for. You can adjust your range by sliding the price range left-right along the chart or dragging scroll bar below the chart.When determining the price range, you should consider the expected price fluctuations during the lifetime of the position. You should also actively manage your positions as the market fluctuates.If the price moves outside the specified range, the position will be concentrated in one of the two assets and no transaction fee will be charged until the price moves back within the range.Next, decide how much capital to contribute to this position. Fill in the amount of one token then the system will automatically calculate the other by the current currency rate.Step 4: Confirm<img src="https://academy-public.coinmarketcap.com/optimized-uploads/73cc41dfba5d49098f6044e53451c050.png" />Click Add liquidity button. Confirm the action in your wallet. After the transaction is submitted, a pop-up box will appear to ask you to accept price. Click Accept<img src="https://academy-public.coinmarketcap.com/optimized-uploads/8cae2a8f14b94986b24b4e202d80a7f9.png" />Next, confirm add liquidity.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/5d0b45282f2c4e41b4c7acfe110e48f3.png" /><img src="https://academy-public.coinmarketcap.com/optimized-uploads/0f2b82af9cd243ef8b8ada960825de9e.png" /><img src="https://academy-public.coinmarketcap.com/optimized-uploads/6e27ec009ea74fad90a09a5e6fa9eb36.png" />Congrats! Once that transaction confirms, your assets now providing liquidity to POSI traders and your position is earning fees. You can monitor and manage your position on the Pool page.<h2 id="header-2">Remove</h2>To delete liquidity.Step 1: Visit the Liquidity page.Step 2: Choose the pair you want to deleteClick on the pair you want to remove liquidity from your liquidity list and choose Remove button<img src="https://academy-public.coinmarketcap.com/optimized-uploads/fdd6479a8c9b48ff9754f2624b370e2e.png" />Step 3: ConfirmClick Remove and confirm the action in your wallet.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/8f9e506549d14047bbee30d757deddd8.png" /><img src="https://academy-public.coinmarketcap.com/optimized-uploads/91db3c2ebf9d49399cc6bcde7b83d0b7.png" />After the transaction is confirmed and there is a successful transaction notification. You will receive two of the tokens from your pair.<h2 id="header-3">Increase Liquidity</h2><ul><li>Step 1: Connect wallet</li></ul>Log in to<a href="https://position.exchange/" rel="noopener noreferrer nofollow"> Position Exchange</a>, choose tab Liquidity and connect your wallet.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/5754883afc9548a1b874b287d1941ed1.png" /><ul><li>Step 2: Choose the pair to increase liquidity</li></ul>In the Liquidity section, you can see all the liquidity you have already deposited displayed on the board as follows. Choose the pair you want to increase liquidity and click Modify<img src="https://academy-public.coinmarketcap.com/optimized-uploads/b4c37a859570453ea924233f7701d5f7.png" /><ul><li>Step 3: Click Increase</li></ul><img src="https://academy-public.coinmarketcap.com/optimized-uploads/d93d98ba58774c6ab27cf5f1de97440e.png" /><ul><li>Step 4: Fill in the amount</li></ul>Enter the number of tokens you would like to add and click Increase<img src="https://academy-public.coinmarketcap.com/optimized-uploads/5a6e8802722842908b82cada398a6c32.png" />When you enter a number on either of the two tokens. The other will be calculated automatically according to the current rate in the pool.<ul><li>Step 5: Confirm the transaction on MetaMask</li></ul>When your liquidity is increased successfully, the number of tokens you have in the pool and the liquidity will be recalculated.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/f501a5f2d79341ee93d0ae970f847e42.png" />Note:<ul><li>You can only increase your liquidity once you have added liquidity and the pair&#39;s range is in the active range.</li></ul><h2 id="header-4">Decrease Liquidity</h2><ul><li>Step 1: Choose the pair to decrease liquidity.</li></ul>In the Liquidity section, you can see all the liquidity you have already deposited displayed on the board as follows. Choose the pair you want to increase liquidity and click Modify<img src="https://academy-public.coinmarketcap.com/optimized-uploads/b4c37a859570453ea924233f7701d5f7.png" /><ul><li>Step 2: Click Decrease Liquidity</li></ul><img src="https://academy-public.coinmarketcap.com/optimized-uploads/3a14b84eacbe441fa080027d998c9ca1.png" /><img src="https://academy-public.coinmarketcap.com/optimized-uploads/f6694374e1944f93a7074ee9d0206e91.png" /><ul><li>Step 3: To decrease liquidity, you can either:</li><li><ul><li>Enter the LP amount you would like to withdraw</li></ul></li></ul><img src="https://academy-public.coinmarketcap.com/optimized-uploads/0aeb3fc344924b8089e57ccdf163213c.png" /><ul><li>Drag the slide bar to choose the percentage of liquidity you would like to withdraw</li></ul><img src="https://academy-public.coinmarketcap.com/optimized-uploads/6e9e781a49714fd1862d04c03504f23c.png" /><ul><li>Step 4: Click Decrease</li></ul>When your liquidity is decreased successfully, the number of tokens you have in the pool and the liquidity will be recalculated. The number of withdrawn tokens will be returned to your wallet.<ul><li>Step 5: Confirm the transaction on MetaMask</li></ul>When your liquidity is decreased successfully, the number of tokens you have in the pool and the liquidity will be recalculated.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/212eb9c133cc4e8e923964f2b11e192b.png" />Note:<ul><li>You can only decrease your liquidity once you have added liquidity.</li><li>You can enter the maximum LP amount or drag the slide bar to 100% to withdraw all.</li></ul>

How to run Concentrated Liquidity of DEX 2.0 - Position Exchange

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Andre artikler publisert på 15. des. 2022

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