Adding Liquidity
Last updated
Last updated
Concentrated Liquidity Market Maker (CLMM) pools allow liquidity providers to select specific price ranges for their liquidity, unlike constant product Automated Market Maker (AMM) pools like DeDust or STONfi, where liquidity is spread from 0 to ∞.
In CLMM pools, LPs choose a specific price range to provide liquidity. They earn fees proportionate to their share at the current price, incentivizing active management to keep the pool’s price within their range.
If the price moves outside the selected range, the position stops earning fees and becomes inactive.
TONCO's liquidity pools allow anyone to provide liquidity by adding their assets to a pool.
— Go to the ‘Pools’ tab and select the desired pool, for example, TON/USDT.
Note: if the pool doesn’t exist, create one by clicking the ‘Create pool’ button. You’ll need to provide liquidity in a 50/50 ratio to set the primary price. Pool creation is free, and you can choose the pool fee (more about fees)
— On the Pools page, select a pool to view its details: TVL, Volume (24h), Fees (24h), and APR (24h).
— Click “Create position” to add your liquidity.
Set a range
— Use the four presets or manually enter minimum and maximum prices according to your strategy.
— A smaller range offers higher yield but higher risk of the price moving outside the selected range.
Note: the price you enter will be rounded to the nearest tick. It is not necessary to enter a round number, as this is a characteristic of how ticks function
When choosing a price range, consider how much you expect the prices to fluctuate while holding your position. Also, think about how much time and effort you’re willing to spend managing your position as market conditions change, and be aware of any costs associated with making adjustments.
— Enter the amount for one asset, and the corresponding amount for the other asset will auto-fill based on your price range relative to the market price.
If your price range is closer to one side of the market price, you’ll provide more of that specific asset. By selecting the Full range button, you can distribute liquidity across the entire range, similar to AMM V2.
— You can allocate liquidity on one side of the market, either above or below the current spot price, depending on your strategy (more about perks for LPs).
— Click the ‘Create position’ button and approve the transaction in your wallet.
— View the current status of your transaction on the screen.
Once processed, you will see a ‘Success’ message and the page will refresh. Your assets are now actively contributing liquidity and accruing trading fees.
For more details on claiming fees and removing liquidity, refer to the “Managing a Position” page.
