Providing Liquidity In SparkSwap

The liquidity provided by community members in a decentralized exchange, commonly known as DEX, is considered the lifeline of all transactions. Without liquidity between two cryptocurrencies, there will be no tokens to exchange in a DEX.

In SparkSwap, the fee per swap is 0.20% of the total swapping volume. If you have provided liquidity in a certain liquidity pool (LP) like SFUEL-BNB, SFUEL-BUSD, SRKb-BNB, or SKRb-BUSD in SparkSwap, then you get a share of the fees which are accumulated during every swap in the said DEX. The share is based on the proportion you have contributed to the LP.

In this article, we will see the step-by-step process of how to provide liquidity in SparkSwap.

How to Contribute Liquidity in SparkSwap

Step 1: Connect your cryptocurrency wallet

You must first connect your MetaMask wallet or WalletConnect wallet. For this tutorial, I’ll be using MetaMask wallet.

Step 2: Add liquidity

Once your cryptocurrency wallet is connected, click Liquidity.

When you are going to provide liquidity, make sure you have both tokens in your cryptocurrency wallet. In this tutorial, I’ll be providing liquidity in the SRKb-BNB pool.

CLick ADD LIQUIDITY button then select the tokens you prefer to provide liquidity. In this tutorial, we use SRKb-BNB as an example.

After putting the desired amount, click SUPPLY. A window will appear containing all the details about adding liquidity in the SRKb-BNB pair. Click CONFIRM SUPPLY.

In this transaction, I will receive 3.02191 SRKb-BNB Liquidity Pool tokens. Click Confirm Supply.

After clicking Confirm Supply, a window containing my MetaMask wallet will appear to confirm the transaction. Click Confirm.

Reminder: Always make sure that you have sufficient BNB to cover the transaction (gas) fee.

Once the transaction has been confirmed in my MetaMask wallet, I returned to the Add Liquidity page and the SRKb-BNB Liquidity Pool appeared since I added liquidity to the said token pair.

Step 3: Stake your LP tokens to earn rewards

Now that I have SRKb-BNB LP tokens, I can stake it in the SRKb-BNB Liquidity Staking so I can earn SRKb rewards.

Conclusion

I hope this tutorial helps you in understanding the importance of providing liquidity in SparkSwap. The available liquidity pools are SFUEL-BNB, SFUEL-BUSD, SRKb-BNB, and SRKb-BUSD. Stay tuned for more liquidity pools in the future!

Learn more about SparkPoint and SparkDeFi from the following links:

SparkPoint Website: https://sparkpoint.io/
SparkDeFi Website: https://srk.finance/

Trade SRK: https://srk.sh/trade
Trade SFUEL: https://srk.sh/tradesfuel
SRK-ETH on Uniswap: https://srk.sh/uniswap

Telegram Announcements (SparkPoint): https://t.me/sparkpoint
Telegram Announcements (SparkDeFi): https://t.me/SparkDeFiOfficial
SparkPoint Community on Telegram: https://t.me/SparkPointOfficial
SparkDeFi Community on Telegram: https://t.me/SparkDefi
SpakPoint Twitter: https://twitter.com/sparkpointio
SparkPoint Facebook: https://facebook.com/sparkpointio
SparkPoint Instagram: https://instagram.com/sparkpointio
SparkDeFi Twitter: https://twitter.com/SparkDeFi
SparkDeFi Facebook: https://www.facebook.com/SparkDeFi
SparkDeFi Instagram: https://www.instagram.com/sparkdefi/

LinkedIn: https://www.linkedin.com/company/sparkpointio
GitHub: https://github.com/sparkpointio
SRK on CMC: https://coinmarketcap.com/currencies/sparkpoint/
SFUEL on CMC: https://coinmarketcap.com/currencies/sparkpoint-fuel/