Learn how to supply assets to a liquidity pool on Balanced.
Supply assets to the Balanced decentralised exchange. Liquidity pools receive 50% of the trading fees, and if you supply liquidity to a Balanced-incentivised pool, you'll earn Balance Tokens daily.
Before you start, make sure you understand the risks of impermanent loss. Use this impermanent loss calculator to help you weigh up the risk of supplying liquidity to a specific pool.
- 2.Choose the assets to supply. You can only use bnUSD, sICX, IUSDC, or USDS as the second asset, and you can add custom tokens if needed.
- 3.Choose the amount to supply. Aside from ICX, all existing pools require an equal value of two assets. If you're creating a new pool, you can set your own price ratio.
- 4.Click Supply or 'Create pool'.
- 5.Click Send to move each asset to the contract, then click Supply or 'Create pool' and complete the transaction.
If you supply liquidity but don't see it in the app, or you leave the page before the transaction is complete, try to supply a small amount to the same pool. You'll see your assets in the contract and can remove them.
Make sure you leave at least 2-3 ICX in your wallet to cover the transaction fees.
To earn rewards for BALN-incentivised pools, you need to stake LP tokens, which represent your position in the pool:
- 1.Click to expand the pool in the liquidity pools section.
- 2.Click 'Adjust stake' and use the slider to stake your LP tokens.
- 3.Confirm the transaction.
You'll earn BALN as long as your LP tokens are staked, and you'll need to unstake them before you can withdraw your liquidity. The ICX pool doesn't require LP tokens: you'll earn BALN automatically.
To withdraw liquidity, click to expand the pool in the liquidity pools section.
Unstake your LP tokens if staked, then choose the amount to withdraw and complete the transaction.
If you're in the sICX/ICX pool, you don't need to unstake any LP tokens: click ICX or sICX to withdraw the full amount.
If you don't see your liquidity details for a third-party liquidity pool, make sure you haven't staked your LP tokens on another platform.
Some of the liquidity pools on Balanced behave differently to others, as outlined below.
The ICX liquidity pool is not a traditional liquidity pool. It operates like an order queue that follows the First In First Out (FIFO) method, and there's no risk of impermanent loss.
While your order is open, you'll earn Balance Tokens.
Your order is filled when your ICX has been converted to sICX. You're no longer supplying ICX so you stop earning Balance Tokens, and can withdraw your sICX at any time. sICX is staked ICX, so it earns ICON staking rewards.
To convert sICX back to ICX, swap it on the Trade page for a 1% fee, or unstake it from the wallet section (depending on the volume of unstaking requests, this could take 1 hour, or up to 7 days).
Liquidity pools that are important for trading on Balanced are incentivised with some of the daily Balance Token inflation.
In addition to the sICX/ICX pool, you can earn BALN from these liquidity pools:
- sICX / bnUSD
- BALN / bnUSD
- BALN / sICX
- IUSDC / bnUSD
- IUSDT / bnUSD
- USDS / bnUSD
To earn BALN for your liquidity, stake your LP tokens from the liquidity pools section. To maximise your BALN rewards, lock up Balance Tokens.
Pools that aren't incentivised by Balance Tokens, like OMM/sICX, CFT/sICX, and METX/bnUSD, only receive 50% of the fees generated by swaps within their pool.
Liquidity providers may be able to earn additional rewards by staking their LP tokens on another platform (like Omm or Craft). While your LP tokens are staked, you won't be able to view your liquidity details for that pool on Balanced, and will have to unstake your LP tokens before you can withdraw your assets from the pool.