Providing Liquidity
Providing liquidity to Vordex has what users call passive income, earning them by supplying their assets to the liquidity pools. While liquidity providers (LPs) receive a portion of the swap fees as well as other governance rewards according to veVEX voting, it lures them. Liquidity constitutes a major precondition for high-quality trading by a variety of metrics, including low slippage and deep market liquidity, thus institutionalizing Vordex as a strong decentralized exchange (DEX).
How to Provide Liquidity on Vordex?
It is very easy and permissionless to provide liquidity on Vordex. You can deposit two assets into a selected pool in a 50/50 ratio and start collecting rewards. āļø No staking or locking is required ā LPs automatically earn from swap fees. āļø Rewards are associated with governance votes - The more veVEX votes, the more the rewards. āļø Freely withdrawable liquidity - Users can withdraw at any point. Steps to provide Liquidity: 1ļøā£ Choose a liquidity pool : volatile or stable. 2ļøā£ Deposit equivalent amounts of both assets: Alph: 50%; Usdt: 50% 3ļøā£ Confirm the Transaction and liquidity is added, and LPs earn rewards. Liquidity is accrued through every swap executed in the pool, whereas additional VEX rewards can be obtained if the pool garners votes from veVEX governance.
Liquidity rewards on Vordex
Long-term liquidity providers in DeFi have been placatingly wooed by functional streams of income.
Swap Fees: 50% of transaction fees are given out to LPs based on total trading volume. Governance Rewards: 50% of swap fees go towards veVEX voters who direct emissions. VEX Emissions: 50% of emissions are given to pools according to the veVEX votes. Staking Rewards: 50% of emissions are distributed to the holders of veVEX that are staked. Bribes: Pools can receive inducements of extra rewards for LP contributors.
How voting affects rewards:
āļø The more veVEX votes a pool receives, the higher its VEX emissions. āļø Pools with more votes become more attractive to LPs, increasing competition for liquidity. āļø Projects and LPs can offer bribes to attract votes and increase rewards.
Withdrawing Liquidity
LPs can withdraw liquidity at any time, reclaiming their share of the pool based on current token ratios.
ā ļø Withdrawals may be subject to impermanent loss, meaning the value of assets received may differ from the initial deposit due to price fluctuations.
Why Provide Liquidity on Vordex?
ā Earn passive income ā Collect swap fees and governance rewards. ā Enhance market efficiency ā Improve trade execution and reduce slippage. ā No lock-up period ā Withdraw liquidity at any time. ā Boost rewards through veVEX ā Influence governance to maximize earnings. ā Decentralized and secure ā No intermediaries, full control over funds.
Last updated