The SundaeSwap protocol allows users to deposit liquidity into existing liquidity pools, and by doing so earn trading fees as a form of yield or reward for providing the liquidity.
To become a liquidity provider on SundaeSwap by contributing to an existing pool, follow the steps below!
1. Visit the app.sundaeswap.finance, connect your wallet, and click on the "Home" tab via the navigation panel on the left.
2. Select or search for a liquidity pool you'd like to provide liquidity to.
3. Click on the "More" button on the right-hand side of the liquidity pool, and click on "Provide Liquidity"
4. In the "Provide Liquidity" panel, enter the amount of tokens you would like to provide to the liquidity pool. You may wish to consider factors such as TVL, trading volume, and your assessment of the risk that these token prices diverge in the future.
Note: Since there needs to be a 50:50 ratio of the assets being deposited, you only need to enter an amount for one asset, and the other will automatically adjust.
5. Once you have entered the amounts of tokens you would like to provide to the liquidity pool, review, approve, and provide your liquidity!
Once your order has been successfully processed by the Scooper, you can find details on your new liquidity position in the "Liquidity" section on the navigation menu on the left.