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WX Invest: Liquidity Pools
WX Invest: Liquidity Pools
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Written by Mark
Updated over a week ago

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What are Liquidity pools?

Liquidity pools are an investment product that allows users to receive passive income by providing liquidity (tokens) to a pool for AMM (Automated Market Making). Users who have provided tokens to the pool are called liquidity providers.

A liquidity pool is a smart contract with a pair of tokens on its balance (for example, USDT / XTN), that provides liquidity for Waves Exchange decentralized trading. The liquidity pools facilitate and speed up the trading process by means of AMM (Automated Market Making). The AMM algorithm automatically fills traders' orders by using pools liquidity. AMM controls the proportion of tokens in each pool depending on the price change.

By investing tokens in a pool, the liquidity provider receives the LP token (for example, USDTXTNWXLP). The growth of the LP token price and, accordingly, the cost of all LP tokens on the balance of the liquidity provider is its passive income. The liquidity provider is able to increase its income by staking LP tokens. Staking LP tokens, the liquidity provider receives WX tokens, the income from the sale of which is his additional passive income. To boost this additional passive income, the liquidity provider can "freeze" their WX tokens. This will lead to an increase in the number of WX tokens that the liquidity provider receives for staking LP tokens.

The following image clearly demonstrates all the stages of investing.

How to invest tokens in a liquidity pool

Open WX Invest app, log in to your account, and navigate to the Investments tab. After that, choose Liquidity Pools in the Staking tab.

In the next step, you need to choose the pool you want to invest your tokens (for example, USDT/XTN).

After pool choosing, you will be redirected to the pool's tab where you can familiarize yourself with the profitability, received rewards (if you invest in this pool earlier), and invest your tokens. To invest tokens, click on the Deposit tokens button.

In the appeared form specify the amount of one of the tokens that you want to invest in the pool (the amount of the second token will be inserted automatically). After you specify the investment amount, the approximate amount of the LP token that you will receive will appear in the LP tokens amount you will get field. After that, click on the Deposit tokens button and your tokens will be invested.


Please note that you can also invest in the USDT/XTN pool with one of the tokens. To do this, you need to select the appropriate token in the column I want to deposit

Each block in Waves network (every minute) you receive a reward for investing, which you can claim by clicking the Claim WX button.

How to withdraw tokens from the pool

Open WX Invest app, log in to your account, and navigate to the Investments tab. After that, choose Liquidity Pools in the Staking tab.

In the next step, you need to choose the pool from which you want to withdraw your tokens (for example, USDT/XTN).

In the pool tab, click on the Withdraw tokens button to continue the withdrawal process.

In the form that appears, enter the number of LP tokens corresponding to the number of tokens that you want to withdraw from the pool. Amounts of tokens that you receive as a result of the transfer of LP tokens will appear in the I receive field. Click on the Withdraw tokens button to withdraw tokens from investment.


Please note that in the USDT/XTN pool, you can choose to withdraw funds with one token or two

How to stake LP tokens

To deposit LP tokens in staking, open the WX Invest app, log in to your account, select Investments in the lower panel of the application and go to the Liquidity Pools section. Select the pool whose LP tokens are on your account balance (for example, USDT/XTN) and click Stake now.

In the next step, you can view how many LP tokens are available for staking.

Please note that all available LP tokens will be transferred to the staking. You cannot change the amount of tokens

Confirm the transaction by clicking the Stake button.

If you have any questions related to WX.Network, feel free to contact us via customer support

tags: liquidity pool wx invest passive income app

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