Provide Liquidity

On Henjin, a liquidity pool is a crowdsourced pool of tokens locked in smart contracts and used to facilitate trades between the assets. Automated market makers (AMM) allow digital assets to be traded in an automatic and permissionless manner through liquidity pools, replacing traditional markets of buyers and sellers.

Henjin v3 enables liquidity providers to concentrate their capital within specific price ranges, leading to increased liquidity at preferred prices. Users can choose to employ both manual mode and auto mode, with the latter automating the adjustment of price ranges.

To provide liquidity on Henjin, navigate to the Pools tab and click "add liquidity". You can also clock on an existing pool, to see details and then add liquidity.

Select a pair

Start by selecting the pair you want to use for providing liquidity. Take into account factors like trading volume, TVL, and the potential risk of price volatility in the future.

Also, check if the pair is incentivized with market maker rewards (v3 manual) which serve as an additional, separate layer of rewards on top of the LP trading fees, or $HENJ incentives (v3 auto).

Select a mode

The mode you choose depends on the specific utility you seek:

  • Manual mode is tailored for experienced liquidity providers, granting them control over the price ranges of the liquidity they provide

  • Automatic mode employs focused liquidity management strategies, handling the intricate task of adjusting price ranges for users.

Refer to the below guides for next steps depending on your choice of mode

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