> For the complete documentation index, see [llms.txt](https://docs.w-chain.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.w-chain.com/w-swap/liquidity.md).

# Liquidity

Provide and manage liquidity in constant-product AMM pools on W Chain. This guide covers creating positions, understanding LP tokens and fees, and safely removing liquidity.

### Overview

* Network: W Chain (EVM-compatible; native gas token `WCO`)
* Model: a constant-product AMM (x·y = k)
* LP Tokens: Minted to represent your position; burned when removing liquidity
* Fees: 0.25% per trade paid to LPs (accrues within pool reserves)

### Prerequisites

* A supported wallet (e.g., Rabby or Metamask) connected to `W Chain`.
* Sufficient `WCO` for gas.
* The two assets you want to deposit. If assets are on Ethereum or BNB Chain, bridge them first.

### Add Liquidity

1. Open `Liquidity` or `Add Liquidity` page.
2. Select the token pair (Token A and Token B). You may paste contract addresses for custom tokens.
3. Enter an amount for one token; the UI computes the corresponding amount for the other token based on current pool price.
4. Approve spending for each token if prompted (`Approve Token A` / `Approve Token B`).
5. Review details:
   * `Pool Share`: Estimated percentage of the pool you’ll own.
   * `Prices`: Implied exchange rates after your deposit.
   * `Slippage/Min Received`: Relevant when creating the initial pool or large deposits.
6. Click `Supply` (or `Add Liquidity`) and confirm in your wallet.
7. After confirmation, you receive `LP tokens` representing your position.

Notes:

* If a pool does not exist yet, your deposit sets the initial price. Carefully choose amounts to avoid unintended pricing.
* For new pools, higher slippage tolerance may be needed; the UI will guide you.

### Remove Liquidity

1. Navigate to your position (e.g., `Pool` page or `Your Liquidity`).
2. Choose the position and select `Remove`.
3. If prompted, approve the router to spend your LP tokens (`Approve LP`).
4. Select the percentage to remove (e.g., 25%, 50%, 100%).
5. Review expected amounts of Token A and Token B.
6. Click `Remove`, confirm in your wallet, and wait for the transaction to finalize.

### Fees and Rewards

* Each trade pays a 0.25% liquidity fee to LPs, accruing inside the pool as additional reserves.
* Your portion of fees is implicit in the increased value of your LP tokens.
* Realization occurs when you withdraw liquidity (your redeemed amounts include fee accrual).

### Risks and Best Practices

* Impermanent Loss: Price divergence between tokens can reduce your position value vs. holding.
* Slippage: Large deposits/withdrawals can move price; consider splitting actions.
* Smart Contract Risk: Use official UI and verified token addresses.
* Gas Costs: Keep `WCO` for approvals, adds, and removals.

### Troubleshooting

* `Approve Required`: Approve both tokens before adding liquidity; approve LPs before removing.
* `Insufficient Balance`: Confirm balances on W Chain and consider bridging if needed.
* `Transaction Reverted`: Increase slippage tolerance or reduce deposit size.
* `No Positions Visible`: Ensure correct wallet and network (`W Chain`) are selected.

### FAQs

* How do I earn fees? Fees accumulate in the pool; your LP token share entitles you to a proportional claim when you withdraw.
* Can I add single-sided liquidity? a constant-product AMM requires balanced deposits; use a swap first if needed.
* Where can I see my positions? Use the `Pool` or `Your Liquidity` view in the DApp.