Provide Liquidity
Last updated
V3 User Docs
Last updated
The Synthetix Liquidity App offer users a way to passively earn fees and rewards by providing the liquidity to power trading products in the Synthetix ecosystem.
Fees from Synthetix products are directed to Liquidity Providers (LPs) in addition to rewards from various incentive programs. LPs earn a share of these fees distributed pro-rata according to their share of the total liquidity provided in addition to various rewards or incentive programs that benefit LPs.
Providing liquidity allows users to collectively function similar to an aggregated "market maker", filling the AMM with liquidity to provide low-slippage trade execution across all supported markets.
Keeper fees, open interest fees, losing trades, and liquidations result in higher rewards for LPs.
Conversely, winning trades result in lower rewards for LPs.
In extreme circumstances, if the amount of winning trades exceeds the fees collected from losing trades, liquidations, and other fees, LP performance can be negative and accrue debt. See Security & Risks for more on the risks of LP'ing.
Connect your wallet and create an account.
Select the asset you wish to deposit.
Under “Manage Collateral” choose “Deposit and Lock”, select the amount to deposit, click “Deposit and Lock Collateral” and sign the approval and transfer transactions.
Any depositing, locking, claiming rewards, or unlocking of liquidity triggers a 24 hour waiting period before withdrawing.
Find your active position by clicking on the "Dashboard" tab in the menu.
Repay any debt from borrowing under the “Manage Debt” tab.
Select the "Manage Collateral" tab.
Select "Unlock" and the amount of deposited collateral to unlock.
Sign the transaction to unlock your collateral.
After the unlocking period of 24 hours, you may return and withdraw your deposit.
Click on the "Dashboard" tab in the menu.
Click "Claim" in the rewards section.
