ConvPool Liquidity Provisoning Guide
Welcome to ConvPool Liquidity Provisioning Guide! Following our Mainnet Staking Guide, this guide is to help you on providing liquidity to ConvPool and receive LP tokens that earn you a substantial APY.
ConvPool is a part of the Convergence dApps suite. It is the liquidity pool behind ConvX, our AMM trading platform for Wrapped Tokens and Assets. To incentivise users adding liquidity to ConvPool, CONV-LP token holders may also stake their CONV-LP tokens obtained from liquidity provisioning to earn extra rewards in CONV, in addition to earning 0.25% of fees from trading activities at the ConvX AMM. Besides LP staking, CONV token holders are also eligible to stake their tokens in ConvPool and earn more CONV, however with a lower APY.
After you have successfully provided liquidity to ConvPool, you can visit our Mainnet Staking Guide to learn how to stake your LP tokens and earn more rewards.
Link to ConvPool: https://convx.conv.finance/liquidity
Preparations
- You must have a MetaMask wallet (https://metamask.io/) installed to your browser.
- Chrome/Brave browsers are recommended, Firefox could be buggy.
- Please use a Desktop/Laptop for now while we are still working on full mobile support.
Walkthrough
Part A: Add Liquidity
As a liquidity provider on ConvPool, you can split 0.25% of the trading fees on our AMM trading platform ConvX. Your share of the trading fee will be calculated based on the proportion of your liquidity provided in relation to the whole pool.
- Hover on the Pool on the left navigation bar and select Liquidity Pools.
- In this example, we click the “Select” button under CONV-ETH pool, to get redirected to the CONV-ETH liquidity pooling page.
- Enter the amount of tokens you want to add to the pool, then click “Add Liquidity”. Please note that due to the design of the AMM architecture, it is a must for you to pair CONV and ETH of the same value, for example $100 worth of CONV and $100 worth of ETH.
- Last step, confirm the transaction(s) via MetaMask and you will be adding liquidity to ConvPool and receive LP tokens according to your share of the pool.
- Please note: For each liquidity pool, if you are providing liquidity for the first time, you will need to perform two transactions, which ConvPool will prompt the transactions for your confirmation on MetaMask accordingly. The first one is an “approval” transaction, that means you are approving ConvPool Smart Contracts to use your tokens. The second one is the actual staking transaction, that means ConvPool Smart Contracts will use your LP tokens to stake into the contract and start earning rewards for you.
Part B: Remove Liquidity
It is mostly reversing the steps in Part A: You return your LP tokens to ConvPool and redeem your share of the tokens you added as liquidity in Part A, plus the trading fees you have earned during the liquidity provisioning period.
- Hover on the Pool on the left navigation bar and select Liquidity Pools.
- In this example, we click the “Select” button under CONV-ETH pool, to get redirected to the CONV-ETH liquidity pooling page.
- Enter the amount of LP tokens you would like to remove, or click Max to remove all. Then click Remove Liquidity.
- Last step, confirm the transaction(s) via MetaMask and you will be removing liquidity to ConvPool and receive your pooled tokens back according to your share of the pool plus trading fees accrued.
- Please note: For each liquidity pool, if you are removing liquidity for the first time, you will need to perform two transactions, which ConvPool will prompt the transactions for your confirmation on MetaMask accordingly. The first one is an “approval” transaction, that means you are approving ConvPool Smart Contracts to use your LP tokens. The second one is the actual removing transaction, that means ConvPool Smart Contracts will use your LP tokens and remove liquidity from the pool to return you share of tokens plus accrued trading fees back to you.
If you have further questions on the staking system, please feel free to ask in our official Telegram or Discord support channel.
About Convergence Finance
Convergence is the first AMM to make private token interchangeable in the DeFi space by fractionalizing them using a single easy-to-use interface and composable with other DeFi protocols. Convergence enables originators to take advantage of DeFi’s liquidity, while DeFi users can access exotic private exposure unavailable to them before. Convergence Finance combines the edge of a lowered investment entry barrier with the liquidity, automation, and transparency features of DeFi to bring exclusive investment exposure to all DeFi users.
