Pool

Overview

You can contribute funds to liquidity pools (LP) on Katana, enabling you to earn trading fees from the resulting transactions.

By engaging as a liquidity provider, you deposit pairs of tokens into a smart contract, effectively increasing the pool's liquidity. For instance, if you decide to support the ETH-RON pool, you need to contribute an equivalent value of both tokens. In recognition of your contribution, you receive LP tokens, which represent your share in the pool. These tokens not only signify your stake but also entitle you to a portion of the trading fees generated by the pool's transactions, directly proportional to your contribution.

Profits and risks

Be aware that earning a profit through providing liquidity is not guaranteed. You may face what is known as impermanent loss, a risk that arises from fluctuations in the value of the deposited tokens.

Prerequisites

To provide liquidity on Katana, you need to have tokens in your Ronin Wallet. You can acquire tokens by depositing from Ethereum using Ronin Bridge, buying tokens through the Purchase website, or receiving tokens from other users. For more information, see Acquire RON.

Add a liquidity pair

1. Open Katana and connect your Ronin Wallet.

2. Select the Liquidity pool page. This page displays a list of available pools.

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3. Search for the pool you want to contribute to. For example, if you want to provide liquidity for the ETH-RON pool, search for "RON".

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4. Select the pool. This opens the Add liquidity panel. This panel is similar to the Swap panel, except you see a plus sign (+) between the two tokens instead of an arrows sign (⇅). This symbolizes that you will be adding both tokens into a pool.

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   Here you can see the detailed information about the pool:

   • Fee earned: the percentage of the trading fee you will earn.
   • Total value locked: the total value of the pool, including the volume, fees, and transactions for the last 24 hours.
   • Charts showing the pool's performance over time: volume, total value locked, and fees.

5. Enter the amount of tokens you want to contribute. Katana automatically calculates the equivalent amount of the other token based on the current exchange rate. You can also click MAX to deposit the maximum amount of tokens you have in your wallet. If everything checks out, click Add.

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   info

   You may need to approve the token if you're interacting with it for the first time. Click Approve, then confirm the transaction in your Ronin Wallet.

6. Review the details of your liquidity contribution:

   • The amount of LP tokens you will get in return.
   • The amount of tokens you are contributing.
   • The share of the pool you will receive.

   Click Confirm add liquidity, then confirm the transaction in your Ronin Wallet.

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When the transaction is completed, you'll see a confirmation pop-up. You can click View on Explorer to see the detailed information on the transaction on Ronin Chain Explorer.

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The My position panel on the Liquidity pool page now displays the following information:

• Your LP token amount
• Your tokens amount in the pool

Congratulations, you are now a Liquidity Provider on Katana. You can now earn fees from the pool's transactions. If the pool supports farming, you can also stake your LP tokens to farm RON. For more information, see Farm.

View positions and earned fees

To see all the pools you contributed to and the fees earned, open the Liquidity pool page, then select My positions.

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Here you can see the following information:

• The pools you contributed to
• The APR (Annual Percentage Rate) for each pool
• The fees you earned from each pool
• Your position in each pool

Select each pool to see more detailed information, such as the amount of LP tokens and the pool's performance over time.

Remove a liquidity pair

1. Open the My positions tab, then select the pool you want to withdraw from:

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2. Click Remove liquidity.

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   You may need to approve the tokens if you interact with it for the first time. Click Approve, then confirm the transaction in your Ronin Wallet.

3. Enter the amount of LP tokens you want to withdraw and burn. You can also click MAX to withdraw all your LP tokens. Depending on the amount, you can see how much you're getting when removing liquidity.

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4. Review the details of your withdrawal, then click Remove.

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5. To confirm the withdrawal, click Confirm remove liquidity, then confirm the transaction in your Ronin Wallet.

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When the transaction is completed, you'll see a confirmation pop-up. You can click View on Explorer to see the detailed information on the transaction on Ronin Chain Explorer.

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You'll also see that the My position panel is now updated to your latest position within the pool.

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You have now removed your liquidity by removing your LP tokens, and have gotten your tokens with the accrued fees, proportionate to your shares. Thank you for your service.