# 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.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.w-chain.com/w-swap/liquidity.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.