Liquidity pools are pairs of tokens locked out in a Smart Contract. Their primary purpose is to provide liquidity to decentralized exchanges assuring quick trades and conversions within different currencies.
Liquidity providers are rewarded for their contribution to the pool. Providers get a share of the trading fees once a trade is completed and a share of the LP rewards proportional to the contribution to the pool.
At this moment, Splinterlands supports two currency pairs on Pancakeswap:
There are three things to consider before going through the process:
- Make sure you have already connected your wallet in the game and added the Splinterlands tokens into your metamask wallet (either DEC or SPS).
- All the transactions on the Binance Smart Chain need to pay a transaction fee; it can only be paid in BNB (Binance Coin). So, you will need some spare BNB in your wallet.
- You will need equal parts of both tokens in your BSC address. E.g., $100 worth in DEC plus $100 worth in BUSD plus some BNB to pay transaction fees.
Step 1: Go to the add liquidity page on Pancakeswap and select the currency pair.
Step 2: Once selected the currency pair, select equal parts of both tokens and click the Enable button if required.
Note: You will need to confirm this transaction before you can Supply some liquidity, a fee (paid in BNB tokens) will be required to confirm this transaction.
Step 3: Once the permissions are granted, you can supply the selected amount of tokens. You will be asked to sign a new transaction.
Step 4: Check out My Liquidity on Pancakeswap to verify your liquidity was added correctly.
Your recently added liquidity will show up in this window. It can be used to increase your contribution or remove liquidity by clicking the "Add Liquidity" or "Remove" buttons.
Tokens can be claimed anytime your balance is higher than zero by clicking the Claim buttons in the Liquidity Pool Dashboard.
Note: LP data is updated once per hour. So it might take some time until your liquidity shows up in the Dashboard.