Add Liquidity
Important Risk Warning
Positions outside the selected deposit range stop earning fees and may experience impermanent loss. Narrow ranges require frequent rebalancing, which incurs gas costs and can significantly reduce net profitability. Review the Risks section before proceeding.
Prerequisites: Token Approval
Before providing liquidity with a token for the first time, a token approval transaction is required for each token in the pair. This one-time authorization grants the Pool smart contract permission to access and transfer the specified tokens on behalf of the connected wallet. Token approval is a separate transaction from the liquidity deposit and requires its own gas fee.
Selecting a Token Pair
Navigate to the Pool page and browse the list of available liquidity pools. Each pool displays key information:
Token pair (e.g., WEMIX/stWEMIX)
Current APR
24-hour / 7-day trading volume
Current liquidity
Select the token pair where liquidity will be provided. Common pairs include WEMIX/stWEMIX and other actively traded combinations.
Setting a Deposit Range
After selecting a pair, choose a deposit range strategy. WEMIX.Fi provides preset options and custom range input:
Preset Range Options
Narrow Range: Concentrated liquidity within ±5-10% of current exchange rate
Maximum capital efficiency and fee earnings per dollar
Requires active management and frequent rebalancing
Higher risk of moving out-of-range
Example: $10,000 position may earn $200/month but incur $50/month in rebalancing costs
Wide Range: Broader liquidity spread within ±20-50% of current exchange rate
Balanced capital efficiency with reduced maintenance needs
Rebalancing required every 1-2 weeks
Suitable for most liquidity providers
Example: $10,000 position may earn $120/month with $15/month in rebalancing costs
Full Range: Liquidity distributed across all possible exchange rates
Lower capital efficiency and fee earnings
Minimal rebalancing required (monthly or less)
Best for passive, long-term liquidity provision
Example: $10,000 position may earn $60/month with $5/month in costs
Custom Range
Advanced users can manually set specific upper and lower deposit boundaries for precise range targeting based on market analysis and volatility expectations.
Selecting Position Placement
After defining the deposit range, select the position placement relative to the current exchange rate.
Position Placement Options
Centered (Current Exchange Rate): Range is centered on the current exchange rate
Balanced exposure to price movements in both directions
Suitable for stable or range-bound markets
Immediately begins earning fees
Right-Shifted (Above Exchange Rate): Range positioned above the current exchange rate
Anticipates upward price movement
Position starts out-of-range but activates if price rises
Suitable when expecting bullish price action
Left-Shifted (Below Exchange Rate): Range positioned below the current exchange rate
Anticipates downward price movement
Position starts out-of-range but activates if price falls
Suitable when expecting bearish price action
Current Exchange Rate Reference
The interface displays the current exchange rate as a reference point for positioning the range. Consider recent exchange rate volatility and expected market direction when selecting placement.
Selecting a Fee Tier
Choose an appropriate fee tier for the position. Different fee tiers suit different market conditions:
0.01%
Stablecoin pairs with minimal volatility
0.008%
0.002%
0.05%
Standard pairs with low to moderate volatility (e.g., WEMIX/stWEMIX)
0.04%
0.01%
0.25%
Moderate volatility pairs
0.2%
0.05%
1.00%
High volatility or low liquidity pairs
0.8%
0.2%
Fee Tier Selection Guidance
Lower fee tiers attract more trading volume but earn less per trade
Higher fee tiers earn more per exchange but may discourage volume
Match fee tier to pair's typical volatility and competition from other pools
Entering Deposit Amounts
Enter the amount of one token to deposit. The platform automatically calculates the required amount of the second token based on the current exchange rate and selected range. Review the deposit details, including estimated position value, deposit range boundaries, and expected share of trading fees.
Review all position parameters and click "Deposit" and confirm the transaction in the connected wallet. Once confirmed, the liquidity position becomes active and begins earning fees immediately if the exchange rate is within the deposit range.
The new position will appear in Portfolio with a unique NFT identifier. Track position status, accumulated fees, and range status through Portfolio.
Example
Adding $10,000 liquidity to WEMIX/stWEMIX pool with ±20% range and 0.05% fee tier:
Daily trading volume: $500,000
Expected monthly fees: ~$250 (0.05% of proportional volume)
If WEMIX price moves 25%, position becomes partially out-of-range
Potential impermanent loss: ~$150 if price diverges 25% and is withdrawn immediately
Net result depends on fee accumulation vs. IL over holding period
Click "Deposit" and confirm the transaction in the connected wallet. Once confirmed, the liquidity position becomes active and begins earning fees immediately if the exchange rate is within the deposit range.
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