In simple words, liquidity in DeFi is the ability of an asset to be sold or exchanged. A liquidity pool is a pair of two digital assets combiined toegether to enable trading on a decentralized exchange (DEX) such as AlienFi.

On AlienFi, liquidity is a key to ensure a healthy and thriving environment. An increase in liquidity available on AlienFi platform means more users have the ability to trade a greater number of their favorite tokens smoothly.

As stated in Alien Swap, adding liquidity on AlienFi platform earns users some trading fees which other users pay when they swap their tokens.

Steps To Add Liquidity

  1. Connect your wallet to AlienFi

  2. Go to the Exchange page by clicking "Exchange" in the navigation bar.

  3. Find the "Liquidity" option and click it.

  4. Search the first token you want to add to the liquidity pool in the list or you can directly search its name. If you're not able to find it, paste the token's contract address into the search field and it'll show up to add into the list. Click on the icon or name of the token to select it.

  5. Repeat the process for the second token you want to add to the liquidity pool.

  6. Input the token amount for one of the tokens, and the other token amount will be calculated automatically for you to ensure equal amounts for both tokens.

  7. If it is your first time adding liquidity for that specific token, you will have to enable it in your wallet first.

  8. Click "Add Liquidity" and confirm the transaction in your wallet.

Note: If you are the first user to add liquidity for a specific token pair, you can choose to add liquidity at any rate you desire. However, be cautious and compare your intended rates to market rates before proceeding to avoid losing money due to market rate differences and potential arbitrage opportunities.

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