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DEXs liquidity provision

Governance > $IDLE token > Use-cases > Liquidity provision
Idle holders can provide liquidity to any of the decentralized trading pools in a trading pair such as IDLE/ETH. Providing Liquidity on AMMs generally requires an equal amount of ETH and IDLE.

Ethereum

Sushiswap liquidity pool

A liquidity pool is a core mechanism of AMM (Automated Market Makers), where at least two assets are deposited to form a trading pair. Whenever liquidity is deposited into an AMM pool, specific tokens known as liquidity providers tokens (LP tokens) are minted and sent to the provider’s address. The proportion of the pool’s liquidity provided determines the number of liquidity tokens the provider receives, and so by staking your LP tokens into the Idle LP Staking Program, Liquidity Providers are entitled to receive additional rewards in the form of $IDLE.
Currently, there is an IDLE-WETH liquidity mining program on the Sushiswap AMM as voted by the Idle Community. The Sushi liquidity mining program was voted with a total allocated budget of 180,000 $IDLE with a daily distribution of 6-months starting from April 2021. The community chose to use the Ampleforth Geyser model for distribution.
Website: Sushi $IDLE Pool​
Tools:
Risks: Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Sushiswap.
Insurance: Nexus Mutual offers an insurance service for SLP tokens covering contract bugs, economics attacks, or governance attacks.

Uniswap liquidity pool

Uniswap is another AMM pool, similar to Sushiswap, where $IDLE token holders can provide liquidity into the pool trading pair of your choice (e.g., IDLE-ETH, IDLE-DAI, etc.). Currently, Uniswap has a V2 and a V3. On Uniswap V3, as the Liquidity Provider, you can concentrate the liquidity price range you would like to provide liquidity for.
Website:
Tools:
Risks: Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Uniswap.
Insurance: Nexus Mutual offers an insurance service for Uniswap LP tokens covering contract bugs, economics attacks, or governance attacks.

Loopring liquidity pool

Loopring is a decentralized Layer 2 AMM with high transaction throughput due to it being built on zkRollup, an Ethereum Layer 2. Providing liquidity in the Loopring AMM works similarly to Sushiswap, with similar risks, except you have to activate your wallet onto layer 2. Liquidity providers earn a 0.20% fee on all trades proportional to your share of the pool.
Website: Loopring IDLE Pool​
Tools:
Risks: Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Loopring.

Polygon

Sushiswap liquidity pool

If you are using the Polygon network, you can provide liquidity on Sushiswap. Currently, there is a 20,000 $IDLE incentivisation program on the WETH/IDLE LP Pool. Providing liquidity on the Sushiswap-Polygon AMM works exactly as it does on the Ethereum mainnet, with similar risks.
Tools:
Risks: Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Sushiswap.