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Nut Money pools allow you to provide liquidity by adding your tokens to liquidity pools or “LPs”.
Liquidity providers earn 0.3% fees from all transactions, proportional to their market share in the pool. Fees are added to the pool and are accumulated in real time. It can be by withdrawing your liquidity.
Liquidity providers stack liquidity (Liquidity mining) and earn NUT at https://nut.money/#earn
To become a liquidity provider, you need to add 2 tokens Liquidity Pool.
Click to open menu Liquidity
to add liquidity or create a pair
There are 2 main buttons on Liquidity Page:
- Create a pair: you are the first liquidity provider.
- Add Liquidity: add your tokens to the current liquidity
When you add your token to a liquidity pool (LP), you will receive LP tokens (NUT’s version of liquidity provider tokens).
For example, if you deposit $NUT and $HUSD into a liquidity pool, you will recieive NUT-HUSD LP tokens.
The amount of LP tokens you receive will represent your share of the NUT-HUSD liquidity pool.
You can also redeem your funds at any time by removing your liquidity.
Providing liquidity is not risk-free, as you could experience erratic losses. That's not all bad for liquidity providers as you will also receive a reward in the form of transaction fees.
Whenever someone trades NUT Swap, the trader pays 0.3% fee, in which 0.25% is added to the liquidity pool of the swap pair they traded.
- There are 10 LP tokens representing 10 NUT and 10 HUSD tokens.
- 1 LP token = 1 NUT + 1 HUSD
- Someone trades 10 NUT for 10 HUSD
- Someone else trades 10 HUSD for 10 NUT.
- The NUT/HUSD liquidity pool now has 10.025 NUT and 10.025 HUSD.
- Each LP token is now worth 1.00025 NUT + 1.00025 HUSD
To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the NUT farms (here), while still earning your 0.25% trading fee reward.