Provide Liquidity

Earn trading fees

When you add tokens to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.

LP Tokens

As an example, if you deposited SUB and AVAX into a Liquidity Pool, you'd receive SUB-AVAX LP tokens.

The number of LP tokens you receive represents your portion of the SUB-AVAX in the Liquidity Pool.

You can also redeem your funds at any time by removing your liquidity.

Liquidity Providers earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool.

Whenever someone trades on ZSwap, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on.

For example:

• There are 10 LP tokens representing 1000 SUB and 10 AVAX tokens.

• 1 LP token = 100 SUB + 1 AVAX

• Someone trades 1000 SUB for 1 AVAX.

• Someone else trades 1 AVAX for 1000 SUB.

• The SUB/AVAX liquidity pool now has 1001.7 SUB and 10.017 AVAX.

• Each LP token is now worth 100.17 SUB and 10.017 AVAX.

To make being a liquidity provider even more worthwhile, you can also put your LP tokens to work in our Farms (coming soon), while still earning your 0.17% trading fee reward.

In the meantime, you can stake SUB and ZSHARE pairs on the SUBZERO+ app.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss. Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.