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Liquidity in Standard Pools

Once a standard pool has been created on OroSwap, any user can add or remove liquidity to participate in fee earnings and help deepen the market for that pair.

Overview​

Liquidity providers (LPs) supply equal-value amounts of two tokens to a constant product pool. In return, they receive LP tokens that represent their share of the pool. These LP tokens accrue a portion of swap fees collected by the pool.

Adding and removing liquidity is permissionless and can be done at any time via the OroSwap interface.

Adding Liquidity​

Requirements​

  • You must hold both tokens in the pair (e.g., MYTOKEN and ORO).
  • The tokens must be supplied in the current pool price ratio (e.g., if the pool price is 1 MYTOKEN = 100 ORO, you must deposit in that ratio).

Steps​

  1. Navigate to the OroSwap UI or CLI.
  2. Select the target pool (e.g., MYTOKEN / ORO).
  3. Input the amount of one token you'd like to supply; the UI will calculate the matching amount for the second token.
  4. Confirm the transaction to deposit both tokens.
  5. You’ll receive LP tokens representing your share in the pool.

Notes​

  • Your position earns a portion of swap fees proportional to your share.
  • You can add liquidity multiple times; each deposit increases your LP token balance.

Removing Liquidity​

Steps​

  1. Go to the portfolio page and find the pool.
  2. Select the “Remove Liquidity” option.
  3. Choose the percentage or amount of LP tokens you wish to redeem.
  4. Confirm the transaction to burn your LP tokens.
  5. You’ll receive your share of MYTOKEN and ORO back, based on the current pool ratio.

Notes​

  • The amounts received may differ from what you originally deposited due to price movement (a concept known as impermanent loss).
  • Removing liquidity is irreversible—ensure you review your position before confirming.