Liquidity Providers

In AtmosSwap, users can participate as liquidity providers by adding liquidity to existing pools. This process allows users to contribute tokens to a pool in exchange for LP tokens, which represent their share of the pool.

Adding Liquidity

To add liquidity, users select the pool they wish to join and specify the amount of one token they want to contribute. AtmosSwap then automatically calculates the required amount of the other tokens in the pool to maintain the correct ratio. Once users provide the necessary tokens, they receive LP tokens in return, which represent their ownership in the pool.

Earning Fees

Whenever a swap occurs in the pool, liquidity providers earn a portion of the trading fees collected by AtmosSwap. These fees are distributed proportionately based on the user’s share of the pool, determined by the number of LP tokens they hold relative to the pool’s total liquidity. The more liquidity a user provides, the larger their share of the fees