Liquidity

Adding liquidity allows the contributor to earn swapping fees from the pairs they've provided. You can supply liquidity and start earning fees, and even more via adding your LPs to the pools you can earn $OMEN. When you've provided liquidity, you will receive LP tokens as proof of contribution. For example, if a user deposited $OMEN and $MATIC into a pool they would receive OMEN-MATIC LP tokens. These tokens represent a proportional share of the pooled assets. These LP tokens can be staked at farms to earn OMEN. We have 13+ pairs for you to stake for now.

How a pool acquires value from fees

If at the time of a trade, there are 100 LP tokens representing 100 MATIC and 100 OMEN, each LP token would be worth 1 MATIC and 1 OMEN. If one user trades 10 MATIC for 10 OMEN, and another traded 10 OMEN for 10 MATIC, then there would now be 100.02 OMEN and 100.025 MATIC in the pool. This means each LP token would be worth 1.00025 MATIC and 1.00025 OMEN when it is withdrawn.

Adding liquidity to an existing pool

You need to provide tokens in a 1:1 value ratio to the liquidity pool. This means that if you are adding to, say, an OMEN-MATIC pool, and wish to provide 2000 MATIC worth of liquidity, you would need to convert approx 1000 MATIC to an equal value of OMEN tokens first via our Augury Swap.

Adding liquidity to a new pool

If the pool you wish to provide liquidity to does not exist, you can create it of course! Just provide the tokens and off you go. As the first liquidity provider, you set the initial exchange ratio (price) if one of the tokens in the pair does not exist yet on AuguryFinance. This often quickly corrects itself through arbitrage and by more liquidity providers adding to the pool.