How to add liquidity to Uniswap V3 on Polygon? (to get xSPACE LP tokens)
oSPACE to xSPACE Migration
This pool concern xSPACE only, old SPACE (Multichain version) aren’t compatible with this pool.
If you already hold SPACE on Polygon, you’ll need to migrate it to xSPACE at a 1:1 ratio. Simply head over to the migration page here:
https://migration.spacetoken.tech
Alternatively, if you don’t have any SPACE on Polygon, you can buy it on SpaceSwap.
What is Uniswap V3?
Uniswap V3 is a decentralized exchange (DEX) that operates on multiple blockchains, including Ethereum and other Ethereum-compatible networks. It allows users to trade various cryptocurrencies in a decentralized and trustless manner, eliminating the need for a centralized exchange.
Uniswap V3 utilizes an automated market maker (AMM) model, where the price of assets is determined by the ratio of tokens in a liquidity pool, rather than the traditional supply and demand dynamics of buyers and sellers. This ensures faster and more efficient trading, often with lower fees compared to centralized exchanges.
Uniswap V3 introduces exciting new features such as concentrated liquidity, where liquidity providers can specify price ranges for their contributions. This results in improved capital efficiency and potentially higher returns. Additionally, Uniswap V3 allows for the creation of custom fee structures and provides enhanced flexibility for liquidity providers.
Operating across multiple chains, Uniswap V3 expands its reach and usability, offering users the ability to trade on various blockchain networks. By creating and contributing to liquidity pools, users can earn trading fees in the form of UNI tokens, incentivizing liquidity provision and helping to create more liquid markets for trading.
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?
Uniswap V3 liquidity pools allows users to trade SPACE with other assets on the Polygon network.
In this step-by-step guide, you will learn how to add Space Token to a liquidity pool on Uniswap.
First, you will need to have Space Token (SPACE) and Polygon Ecosystem Token (POL) in your Web3 Wallet on the Polygon Network.
We recommend using Rabby.io as Web3 wallet, since that’s probably the most secure and the user experience is great.
1- Once you have these tokens, you need to go to the pool page and connect your Web3 wallet that contains your SPACE and POL.
Optimism xSPACE-POL Pool Page is https://app.uniswap.org/add/0x1D1498166DDCEeE616a6d99868e1E0677300056f/ETH/500?minPrice=0.0000000000000000000000000000000000000029395&maxPrice=340190000000000000000000000000000000000&chain=polygon
a- Open your Web3 Wallet And Select Polygon
b- Go to the xSPACE-POL Pool Page and connect your wallet
2- Trading fee tier (0.05%)
You need to keep the fee tier to 0.05%.
Other tiers are not compatible to get Space LP Bonus and Staking on Final Autoclaim
3- Select “Full range” as range settings
By selecting the “Full range” option, liquidity providers can ensure that their liquidity will be utilized even in volatile market conditions, reducing the risk of impermanent loss. This setting allows the liquidity provider to specify a wider price range for the pool, which can result in a safer and more stable position.
Warning: Only the Liquidity provided with “Full Range” option will be included in your SPACE LP balance, if you want to enjoy of Space LP Bonuses and Staking on Final Autoclaim
4- Enter the amount you want to add to the liquidity pool. You need to provide SPACE and POL in a 50/50 ratio (for example, $9 in SPACE and $9 in POL).
5- Enable SPACE, so the token will be able to interact with the pool
Approving SPACE will require to sign a transaction on your Web3 wallet, don’t worry, it is safe.
6- Confirm the transaction, and wait for the network confirmation.
a- Click the “Preview” button, that will show you details about the position that you will get:
b- Click the “Add” button, that will ask you to sign another and last transaction on your web3 wallet.
c- Sign the transaction on your web3 wallet.
If you use Rabby, just click the “Sign” button
After a minute, you can close the message, and you’ll be able to see your liquidity position.
In the image below, you can see our xSPACE-POL positions.
If we click on the position, we can see that this position contains 1000 xSPACE and ~24.28 POL.
As you can see, you can Increase or Remove liquidity any time, be sure to bookmark the pools Uniswap link: https://app.uniswap.org/pools, so you can manage your positions simpler just by opening the link.
🎉Congratulations!
You’ve successfully added xSPACE and POL to Uniswap V3 liquidity pool on Polygon.
You can now refresh your SPACE LP balance on Final Autoclaim Space Bonus Page to enjoy bonuses on the website.
Once you have refreshed your LP balance, you can activate the xSPACE LP staking pool to enjoy high APR.
