Finn's Liquidity Guide
Last updated
Last updated
When a user completes a swap on Huckleberry, the protocol charges a 0.3% trading fee, of which 0.25% is paid to the Liquidity Providers of the token pair that was traded.
Anyone who stakes a pair of tokens, e.g. $CLV and $FINN, becomes a Liquidity Provider. These token pairs, or pools, are what makes it possible for users to exchange between two tokens automatically. When a user add liquidity to a token pair, they get HBLP (Huckleberry Liquidity Provider) tokens representing their shair of the pool.
While you can provide Liquidity to any token pair, more popular pairs will of course have more tradin’ activity. Some of you clever drifters might also consider addin’ Liquidity for under-serviced pairs — while the total tradin’ volume may be lower than more popular pairs, you will likely represent a greater proportion of said Liquidity pool. And of course, this means you will receive a greater portion of the tradin' fees for that pair!
Now, let ol’ Finn walk you through a specific example of how to add Liquidity. For this demonstration, I will add liquidity using $MOVR and $BTC.m. $BTC.m is a crosschain asset, backed 1:1 with native BTC, brought to Moonriver using Wanchain’s decentralized bridges.
1. Visit the Liquidity page.
2. Click the Add Liquidity button.
3. Choose a token usin’ the dropdown menu in the upper section.
4. Choose another token to complete the pair using the dropdown menu in the lower section.
5. Type in the amount you want to provide for one of the tokens by clickin’ inside the input box. The other token amount will be calculated automatically by Huckleberry.
6. If this is your first time interactin' with a particular token, you will need to approve it. If prompted, click the Approve button. Your wallet will ask you to confirm.
7. Wait for about 10–20 seconds. Once confirmed by the Moonriver blockchain, the Supply button color will turn to blue. Click it.
8. A box with more details will appear before your eyes. Make sure the details are as you intended. Click the Confirm Supply button. Then, confirm the transaction once more in your wallet.
9. After a short wait you can see your HBLP balance and your share of this liquidity pool at the bottom of the page.
You can repeat the steps above to add more Liquidity at any time to any pair.
10. After addin’ Liquidity, go the River page and choose the River matchin’ the two tokens you provided as Liquidity.
11. Click Deposit and deposit your HBLP tokens.
1. Visit the Liquidity page. If you are providin’ Liquidity you will see the token pair here.
2. Click Manage and choose Remove. A box will appear.
3. Use the buttons or slider to choose what percent to remove. Choose MAX to remove everything.
4. Click Approve. Then, confirm the transaction in your wallet.
5. The Remove button will light up. Click it.
6. A box with more details will appear before your eyes. Make sure the details are as you intended. Click Confirm. Then, confirm the transaction once more in your wallet.
7. After a short wait you will see your $MOVR and your $BTC.m are back to your wallet!
And that’s it! You now know how to add and remove Liquidity on Huckleberry!
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