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Add Liquidity

This guide will assist you in navigating the 'Add Liquidity' module.
We'll walk you through the elements and inputs of the interface, followed by a tailored FAQ section to address common queries related to this module.
After selecting an LP Vault to which you want to provide liquidity, you'll be presented with the following section:
The first three rows provide you with essential information about the LP Vault:
  • [Morpho]: Identifier of the LP Vault you will add liquidity into.
  • APR: This shows the current APR of the LP Vault.
  • Next Rollover: The date your liquidity is automatically rolled into the next period.
In the input field, you can choose either an underlying token (e.g., USDC) or its interest-bearing token (e.g., mUSDC) for the deposit.
Upon entering the deposit amount (in our example, that's 200 USDC), the lower area provides a summary of the transaction:
  • LP - This indicates the number of 'Liquidity Provider' Tokens you'll receive in your wallet.
  • Pool share denotes the percentage of the total pool that your LP tokens represent at a given time.
This feature is not fully available in Beta.
Once you've reviewed the summary, click [Add Liquidity] to initiate the action.

Frequently Asked Questions

  1. 1.
    What are the fee streams a liquidity provider is entitled to?
As a liquidity provider in an LP Vault, you're entitled to up to four fee streams:
  • The yield of the interest-bearing token
  • Incentives from the underlying platform
  • Pool Fees
  • Native or third-party rewards
  1. 2.
    What does 'Next Rollover mean'?
LP Vaults are designed to power pools with specific maturity dates. When the pool reaches maturity, a new period begins automatically, and all liquidity in the LP Vault is rolled over to the new period. As a Spectra liquidity provider, you don't have to redeposit your funds at each maturity manually.
  1. 3.
    Can I withdraw my deposit anytime?
Yes, you can withdraw your liquidity from the LP Vault anytime. Just use the [Withdraw Liquidity] tool.
  1. 4.
    Where can I preview my earnings from the liquidity provision?
To preview your earnings from liquidity provision, go to your Portfolio page and select the [LP Vault] tab.