May 2, 2022
How to add liquidity on Spookyswap? (to get SPACE-FTM LP tokens on Fantom Network)
What is Liquidity Mining?
Liquidity mining, also known as yield farming, is the act of providing liquidity via cryptocurrencies to decentralized exchanges (DEXs). Since the primary goal of an exchange is to be liquid, DEXs seek to reward users willing to bring capital to their platform.
Most DEXs are decentralized by replacing order books with an Automatic Market Maker (AMM). An AMM is a smart contract that regulates trading. Since smart contracts are decentralized, users do not have to trade the order book of an exchange. Instead, they effectively trade with other users.
The AMM collects these fees and grants them to each liquidity provider (LP) as a reward. Therefore, the DEX offers a symbiotic ecosystem where each group of users helps each other. While the token swapper pays a small fee to trade on a decentralized exchange, the liquidity provider earns money for providing the liquidity that the first user will need.
How to add liquidity?
In this step-by-step guide, you will learn how to add Space Tokens to a liquidity pool on spookyswap.
First of All, you will need to have Space Tokens (SPACE) and Fantom(FTM) on your Web3 Wallet compatible with Fantom Opera Network (As Web3 Wallets, you can use Metamask, Trust Wallet, or Frame..).
1- Once you have these tokens, you need to go to this page and connect your wallet who contains your SPACE and FTM.
2- Enter the amount you want to add to the liquidity pool. You need to provide SPACE and FTM in a 50/50 ratio (for example, $20 in SPACE and $20 in FTM).
3- Confirm the transaction, and wait for the network confirmation.
Once the tokens are added to the liquidity pool, you’ll be able to see your liquidity by clicking on the ‘My Potions’ button.
Then click on ‘Import it’ and select FTM + SPACE, You may need to manually search for the SPACE contract address (0x5f7F94a1dd7b15594d17543BEB8B30b111DD464c) to see SPACE in the list.
In the image above you can see that this wallet contains 142.9 SPACE/FTM LP tokens.
Done. You have added SPACE and FTM tokens to the liquidity pool on Spookyswap!
