Single-Sided Liquidity
Overview of how our single-sided liquidity features work.
Last updated
Overview of how our single-sided liquidity features work.
Last updated
Another unique feature of eckoDEX is that liquidity providers will be able to provide liquidity to any pair with just one side. Thus, if you wanted to provide liquidity to a KDA/USDC pair but only owned KDA, then we would allow you to provide liquidity with eckoDEX by swapping 50% of your KDA for USDC and completing the pair for you in a single gas-free transaction.
Example:
$10,000 in KDA is put into the KDA/USDC LP pair,
$5,000 KDA is swapped for USDC and the two tokens get added to the KDA/USDC LP,
When the provider chooses to leave the LP Pool they receive back KDA and USDC equivalent to what it’s 1:1 ratio currently is plus any additional fees they have accumulated in either their native pair or KDX as described above.
The same process can be done when removing liquidity, also done in a single transaction, for example:
$5,000 in KDA and $5,000 in USDC are removed from the LP by the provider,
$5,000 in USDC is swapped for KDA, and both tokens are returned to the provider.
The process for adding or removing liquidity to a pool in eckoDEX with a single token is very similar to adding via the normal double-sided system.
To begin, navigate to the 'tokens' section:
From there, select the token and pool you wish to provide liquidity in:
Input the amount of liquidity you wish to provide in the token of your choice:
Click 'supply' and sign the transaction in eckoWALLET when it appears:
After clicking 'confirm' in eckoWALLET, click confirm on the transaction:
Your transaction is now submitted, and will process through the eckoDEX Wrapper contract. Do not refresh the page while the transaction is processing. To view your liquidity positions, navigate to 'my liquidity':
To remove liquidity, press the '-' button on the 'my liquidity' page, then select 'single-sided':
Here, select the amount of liquidity to remove (between 0% and 100% of your stake), and, if applicable, whether you wish to receive KDX rewards instead of normal fees. Then click on 'Remove' to sign and preview the transaction:
The preview screen shows the amount of each token that will be removed, and the amount of token you will receive at the end of the transaction. If applicable, the estimated KDX rewards you will receive are shown here as well.
If all the information is correct, just confirm the transaction and wait until it gets confirmed by the Kadena blockchain.
This concludes our guide on providing single sided liquidity to a pool on eckoDEX utilizing the eckoDEX Smart Contracts.
