🎓Add Liquidity

This guide will assist you in navigating the 'Add Liquidity' module.

After selecting the pool where you want to provide liquidity, you'll see the following:

In the upper section of the module, you will find the essential info:

• Pool identifier alongside the pool's address

• The pool's expiry date

• Current liquidity expressed in $USD

You can choose an underlying token (e.g., USDT) or its Interest-Bearing Token (e.g., aUSDT) in the input field to get started with liquidity provision.

Underneath, the NPIM mode allows you to enter the pool in two ways:

NPIM ON: The output consists of an LP (PT<>iBT) and YT token. In most cases, this will result in slightly fewer LP tokens than the NPIM OFF way.

Yield Tokens result from the yield tokenization process; however, they are not part of the pool composition. LP token holders remain entitled to fees from Yield Token (YT) swaps as they are driven by flash swaps utilizing the PT<>iBT pool. Read more about output composition when providing liquidity in this FAQ section.

NPIM OFF: The output consists solely of an LP Token.

In this scenario, Principal Tokens in the LP token are directly bought from the IBT parts in the pool.

Upon entering the deposit amount (in our example, that's 100 USDT) with NPIM OFF, the lower area provides an output summary consisting solely of:

• LP Tokens - represent the number of liquidity provider (LP) tokens you receive in exchange for your deposit. These tokens are proof of your share in the pool and can be used to redeem your portion of the pool's assets, plus any accrued swap fees.

• Pool Share - represents the percentage of the total pool's liquidity that your deposit contributes. This percentage determines your proportionate share of any swap fees the pool generates.

To proceed, token approval [Approve] is required first, followed by action confirmation [Add Liquidity].

Questions?

View this FAQ section on adding liquidity.