How to Add Liquidity to SRK-ETH Pair in Uniswap
This tutorial will show you how to add liquidity to the SRK-ETH pair in Uniswap. Volume and liquidity of SRK-ETH in Uniswap has been steadily and significantly increasing during the last few weeks since listing the trading pair in June. I hope this quick and easy guide will help keep this momentum going and attract more people to add to the pool.
Introduction
Let’s start by defining a few terms to have a better understanding and appreciation of how Uniswap works.
What is Liquidity?
In business, economics or investment, market liquidity is a market’s feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset’s price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold.
In short, liquidity makes an asset easy and fast to sell at a good price. An asset is considered to be liquid if it’s easy to convert to cash at a good price. And yes, cash is the most liquid asset. In the case of crypto, liquidity can also mean the ease of converting one token to another, as in the case of SRK-ETH pair.
What is Uniswap?
Uniswap is a fully decentralized protocol for automated liquidity provision on Ethereum.
A simple formalized equation drives unstoppable liquidity for thousands of users and hundreds of applications.
Uniswap empowers developers, liquidity providers and traders to participate in a financial marketplace that is open and accessible to all.
Simply put, Uniswap is an open decentralized exchange platform running on the Ethereum blockchain where anyone can participate as a developer, liquidity provider, or trader.
What is a Liquidity Pool?
Liquidity pools offer a new standard for efficiently trading assets while allowing investors to earn a yield on their holdings.
Behind the scenes, the “liquidity pool” is just an automated market maker in the form of a smart contract that automatically matches traders’ buy and sell orders based on predefined parameters.
Liquidity pools allow traders to perform buy and sell orders that are automatically executed through smart contracts. Trades are guaranteed as long as the liquidity pool has enough tokens to fulfill the orders.
Things You Need
Where to Get ETH
Uniswap requires equivalent amounts of ETH and SRK to add to the liquidity pool but make sure you have more ETH to pay for transaction fees (gas).
Where to Get SRK
- From SparkEarn. By signing up and completing bounties. This will take some time though.
- Trade some of your ETH to SRK in Uniswap. I’ll discuss this in more detail in the next section.
How to Add Liquidity in Uniswap
Step 1: Open Uniswap
Go to the SRK-ETH pair Uniswap info page. Read the Token Safety Alert warning then click I understand if you understand and accept the risks.
Open MetaMask and check to make sure you have enough ETH tokens on your wallet. If you don’t have ETH, read the “Where to Get ETH” section above.
Step 2: Get Some SRK
To add to the SRK-ETH liquidity pool, you need to provide equal amounts of ETH and SRK tokens. Make sure you have extra ETH to cover price fluctuations and the transaction fees (gas).
Go ahead and click the Trade button.
This will take you to Uniswap’s Swap page.
Read the Token imported warning then click I understand if you understand and accept the risks.
Click on Connect Wallet to connect your MetaMask wallet.
Select MetaMask from the list, make sure your Uniswap (your account name is most likely different) account is active then click Connect. In the latest version of MetMask, you’ll be asked first to choose which account to connect.
Upon successful connection, you’ll see your ETH and SRK balances.
We’ll trade some of our ETH to SRK. Click the down arrow to set ETH as the From token.
Let’s trade 0.25 ETH to SRK to have enough extra ETH left for transaction fees (gas).
At the time the screenshot was taken, 0.25 ETH was worth around 219,824 SRK. Go ahead and click on the Swap button, double check the values then click on Confirm Swap.
Always check ETH Gas Station for the current transaction fee rates. You’ll save some ETH if you perform transaction when gas prices are low. Gas prices in the Ethereum blockchain have risen significantly during the past few weeks. I recommend setting the gas fee to Fast to avoid waiting too long for the transaction to be processed. Click Confirm to submit the transaction to the Ethereum blockchain.
You can click View on Etherscan to see your transaction’s progress.
It should take a few seconds for the transaction to be confirmed.
Step 3: Add Liquidity
Go to Uniswap’s Add Liquidity page. Check that you have the right amount of SRK that you traded in the previous step. In my case, I now have 219,824 SRK tokens and my ETH has been reduced to 0.388534.
Let’s add all our SRK to the Liquidity Pool by click on MAX button. We also need equal amount of ETH which is 0.251774, an increase of 0.001774 from our previous ETH to SRK trade. Double check the values then click on Approve SRK.
Edit the Transaction Fee and select the Fast option then click Confirm to submit the transaction.
Wait for the transaction to be approved. You can also check it out on Etherscan to see the progress.
After the transaction is approved, the Supply button will be enabled, click it now.
Uniswap will inform you how much Pool Tokens you’ll receive. In my case, I’ll be receiving 227.416 Uniswap SRK/ETH Pool Tokens. Check the values once again then click Confirm Supply.
These Pool Tokens play a very important role in SparkPoint’s upcoming SparkDeFi platform. You can stake these Pool Tokens in SparkDeFi’s smart contract and receive a pro rata share of the SparkPoint Ecosystem Development fund allocated to reward SRK-ETH liquidity providers. This is separate from and is in addition to the share in the fees generated from transactions in Uniswap.
Your MetaMask wallet will open again. Edit the Transaction Fee and set it to Fast then click on Confirm.
Upon submission, you can check the transaction progress in Etherscan. It should take a few seconds.
Upon confirmation, you’ll see Your position update from showing all zeroes to showing the updated values corresponding to the amount of tokens you added to the liquidity pool and the SRK/ETH Uniswap Pool Tokens you received.
That’s it! You’ve contributed to the SRK-ETH liquidity pool! Thank you for your support! The next and final step is to confirm you’ve received the Pool Tokens from Uniswap.
Step 4: Pool Tokens
Confirm that you’ve received the Pool Tokens from Uniswap. You may not need to do this in the latest MetaMask version, your Pool Tokens should automatically appear in your wallet. But if not, do these steps:
From the Etherscan Transaction Details page, open the Uniswap V2 token page.
From Uniswap V2’s Token page, copy the Contract address.
Open your MetaMask wallet and click on the Menu button.
In the Menu screen, click Add Token.
Switch to the Custom Token tab and paste the Uniswap V2 Token’s Contract address in the Token Contract Address box. The other boxes should be autocompleted. Double check to make sure it’s the same as the one in Etherscan. Click Next.
We can now partially see that I have the correct balance of 227.xx of UNI-V2 tokens. Click Add Tokens to complete the process.
You should now see your complete and correct UNI-V2 token balance.
Upon refreshing and checking the SRK-ETH Pair Uniswap info page, you’ll see that the Total Liquidity has increased by the amount you’ve added (if no one removed liquidity while you were adding).
Conclusion
I hope you’ll now find it easier to add liquidity to the SRK-ETH pair in Uniswap with the help of this guide. In the next tutorial, I’ll discuss the inverse process which is how to remove liquidity from Uniswap.
Follow SparkPoint’s social media acounts for updates on our upcoming SparkDeFi platform. The SparkDeFi smart contract will enable you to stake your Uniswap Pool Tokens to earn additional SRK.
Official Website: https://sparkpoint.io/
2020–2021 DeFi Roadmap: https://sparkpoint.io/roadmap
SRK-ETH on Uniswap: https://srk.sh/uniswap
Telegram: https://t.me/SparkpointOfficial
Telegram Announcements: https://t.me/sparkpoint
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Facebook: https://www.facebook.com/sparkpointio/
GitHub: https://github.com/sparkpointio
LinkedIn: https://www.linkedin.com/company/sparkpointio
CoinMarketCap: https://coinmarketcap.com/currencies/sparkpoint/
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