Adding Liquidity for OD or ODG
Guide to Adding Liquidity for OD or ODG on Camelot DEX
Prerequisites
- Supported Wallet: E.g., Metamask
- Arbitrum Network: Ensure your wallet is connected to the Arbitrum network. Arbitrum network details.
- Funds: You need to have both ETH and OD or ODG tokens in your wallet. ETH is used for transaction fees and as part of the liquidity pairs.
- Understanding DeFi Risks: Familiarize yourself with the risks of providing liquidity, such as impermanent loss.
Steps to Add Range-Bound Liquidity
Step 1: Access Camelot DEX
- Visit Camelot DEX.
- Click on "Connect Wallet" and link your wallet.
Step 2: Navigate to Liquidity Management
![Liquidity Navigation](./img/Untitled (50).png)
- Select βTradeβ at the top menu and then click on "Liquidity" from the drop down.
- Go to the liquidity management page by clicking on "Add Liquidity."
Step 3: Choosing the Liquidity Range
![Liquidity Range](./img/Untitled (51).png)
- Select the ODG/ETH or OD/ETH pair.
- This range should be selected based on your expectations of the price movement and your comfort with the market's volatility.
- Minimum Price: The lowest price at which your liquidity will be used. Below this price, your liquidity won't be utilized in trades.
- Maximum Price: The highest price at which your liquidity will still be used. Above this price, your liquidity won't participate in trades.
Step 4: Approve and Supply Liquidity
- Click "Approve" for OD/ODG, allowing Camelot DEX to interact with your tokens. Confirm this in your wallet.
- After approval, click "Supply" to deposit your funds within the specified range.
- Confirm the transaction in your wallet.
Step 5: Transaction Confirmation and Receipt of LP Tokens
- Wait for the blockchain confirmation.
- Once the transaction is confirmed, you'll receive LP tokens that represent your position within the specified price range of the OD/ODG / ETH pool.
What to Do After Providing Liquidity
- Monitor Your Position: Since your liquidity will only be active within the set price range, it's important to monitor the market and adjust your range if needed.
- Collect Fees: Earn trading fees from the transactions within your price range.
- Adjusting the Range: If market prices move out of your selected range, your liquidity will not be earning fees. You may want to adjust the range or add additional liquidity at different ranges.
Risks and Considerations
- Impermanent Loss: This occurs when the market price at withdrawal is different from when you provided liquidity, and it is more pronounced if the market moves outside your specified range.
- Smart Contract Risk: Interacting with contracts carries the risk of bugs or vulnerabilities. Always use official and audited contracts.
Learn more
Visit Camelotβs Docs section on Providing Liquidity to learn more.