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.

Pool: Sushi IDLE pool

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 on the liquidity price range you would like to provide liquidity for.

Website: Uniswap

Pools: IDLE-ETH pool 1, IDLE-ETH pool 2

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.

Balancer liquidity pool

Balancer is an Ethereum-based Automated Market Maker (AMM) protocol that functions as a decentralized exchange (DEx) and a “self-balancing” portfolio management tool. Balancer's AMM provides traders with liquidity for their ERC-20 tokens.

Website: Balancer

Pool: IDLE-USDC pool

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. Providing liquidity on the Sushiswap-Polygon AMM works exactly as it does on the Ethereum mainnet, with similar benefits and risks.

Website: IDLE-WMATIC pool

Risks: Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Sushiswap.