Skip to main content

🏊 Liquidity Pool

Overview​

HashgreenSwap takes a 0.90% trading fee from token exchanges and provides a portion of the trading fee (0.30%) as reward to liquidity providers.

As a liquidity provider, you don’t have to manually collect the rewards you obtain during your liquidity deposit. They will be cashed back to your wallet automatically once you remove liquidity from the pool.

How to Provide Liquidity?​

In order to provide liquidity and start receiving rewards from HashgreenSwap, users can stake at most two tokens of equal valuation into the liquidity pool. For example, should you be targeting the token pair XCH and USDS, if you have 10 XCH and the current XCH-USDS ratio is 1:30, you would normally have to provide 300 USDS to stake into the liquidity pool.

If you’d like to learn more about how does it work, please take a look at this article.

Zap​

HashgreenSwap supports “Zap”, which allows users to provide only one side of the tokens when adding liquidity, instead of both in the usual case. In other words, you don’t have to provide an equal value of A tokens and B tokens to add liquidity.

This Reddit post gives a pretty good explanation to this functionality.

Impermanent Loss​

Please note that providing liquidity incurs the risk of impermanent loss. Make sure you fully understand the risk and the mechanics before investing. Please refer to this article to learn more about impermanent loss.