diff --git a/product-features/liquidity-providers/faqs.md b/product-features/liquidity-providers/faqs.md index e849bd0..93046dd 100644 --- a/product-features/liquidity-providers/faqs.md +++ b/product-features/liquidity-providers/faqs.md @@ -56,9 +56,9 @@ The fees are not directly transferred to the liquidity provider's (LP) wallet. I Where can I see the fees I've gained so far as a liquidity provider? -You can view your accrued fees in the "My Liquidity" panel. To access it, navigate to the Swap -> Pool tab and select your pool of interest from the list. You'll also see a summarized version above the pool list. +While there isn't a direct way to view your fees separately, you can check the "My Liquidity" panel for this purpose, which shows your LP tokens and liquidity provision details. To access it, navigate to the Swap -> Pool tab and select your pool of interest from the list. You'll also see a summarized version above the pool list. -In this panel, the "Pooled" amount reflects your total token holdings in the liquidity pool, which includes both your initial deposit and any fees you've accrued. Over time, this amount increases as more fees are added. The "Indicative Value" shows the USD equivalent of your holdings, which may fluctuate due to price changes of the pool's assets, but still provides a useful reference for tracking your gains. +In this panel, the **Pooled** amount reflects your total token holdings in the liquidity pool, which includes both your initial deposit and any fees you've accrued. Over time, this amount increases as more fees are added. The **Indicative Value** shows the USD equivalent of your holdings, which may fluctuate due to price changes of the pool's assets, but still provides a useful reference for tracking your gains. @@ -84,11 +84,11 @@ Yes, you can remove liquidity at any time. However, if you've staked your LP tok Let's walk through an example of how impermanent loss might look for a liquidity provider (LP). -Carol deposits 100 [STX](https://www.coingecko.com/en/coins/stacks) and 150 [sUSDT](https://www.coingecko.com/en/coins/bridged-tether-alex-bridge) into a liquidity pool. As with ALEX DEX's AMM, the deposited token pair must to be of equivalent value. This means that the price of STX is 1.5 sUSDT at the time of deposit, making her total deposit worth 300 USD. +Carol deposits 100 [STX](https://www.coingecko.com/en/coins/stacks) and 150 [sUSDT](https://www.coingecko.com/en/coins/bridged-tether-alex-bridge) into a liquidity pool. As with ALEX DEX's AMM, the deposited token pair must to be of equivalent value. This means that the price of STX is 1.5 sUSDT at the time of deposit, making Carol's total deposit worth 300 USD. Now, let's assume the total pool size is 1,000 STX and 1,500 sUSDT, funded by Carol and other LPs. So Carol has a 10% share of the pool. -Next, suppose the price of STX rises to 6 sUSDT. As this happens, arbitrage traders will add sUSDT to the pool and remove STX, adjusting the ratio to reflect the new market price. Since AMMs don't use order books, the asset's price in the pool is determined by the ratio between their balances. +Next, suppose the price of STX rises to 6 sUSDT. As this happens, arbitrage traders will add sUSDT to the pool and remove STX, adjusting the balances to reflect the new market price. Since AMMs don't use order books, the asset's price in the pool is determined by the ratio between their balances. With the price change–STX is now 6 sUSDT– the pool now holds 500 STX and 3,000 sUSDT, thanks to the work of arbitrage traders. diff --git a/product-features/liquidity-providers/how-to.md b/product-features/liquidity-providers/how-to.md index 9bd97de..542f205 100644 --- a/product-features/liquidity-providers/how-to.md +++ b/product-features/liquidity-providers/how-to.md @@ -30,7 +30,7 @@ All available pools will be displayed including information such as: * **Trading Pair:** The token pair that constitute liquidity pools to which you can add liquidity. * **Liquidity:** The total liquidity in the pool, expressed in USD value. -* **Volume:** The trading volume between the token pair over the last 7 days. +* **Volume:** The trading volume between the token pair over the last 7 days. By hovering on the trading volume for a specific row/pool, the 24-hour volume is also displayed. * **Fee Rebate:** Potential LP earnings from swap fees over a year, based on the last week's average. This metric, also known as Pool APR, reflects the potential profitability of participating in a pool over a year, assuming similar trading activity continues. Select the token pair to which you want to add liquidity from the displayed list. Note you can sort by pool metrics.