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Provide Liquidity

For those lacking the ability, time, or willingness to independently market-make and engage in creating market maker pools, liquidity provision in a preferred pool is a simpler option. This way, you can earn a share in market-making rewards and collectively bear market-making risks.


How to Choose​

Generally, there are three key major indicators: TVL, APR and MDD.

  1. TVL represents the total value of capital in the pool, and is a key indicator of popularity and somehow the confidence of other LPs to this pool.

  2. APR represents the estimated reward annually. Here we provide three options for you to choose from: weekly, monthly and all-time, the difference being whether weekly/monthly or all data is used to estimate. If you want to check short-term performance then just choose weekly.

  3. MDD is widely used to express the risk in investment strategy. In Jungle Exchange, it measures the largest percentage decline in market making during a specific period. The larger the maximum drawdown, the higher the risk. MDD is calculated as:


MDD=Max{(1−Trough(n)Peak(n))×100%∣∀n}MDD = \text{Max}\{(1 - \frac{\text{Trough}(n)}{\text{Peak}(n)}) \times 100\% \mid \forall n\}

Provide Liquidity​

Now you have picked a MM pool with pool strategy and basic attributes you preferred, and entered in the pool details page, you can see the option panel on the right side. If it’s the first time for you to provide liquidity in Jungle, you need to approve USDC allowance first. You need to input how much USDC you’d like to deposit. It will show the current exchange rate and how much pool LP token you’ll receive. The final step is to submit the transaction to your wallet and approve it. You shall see the balance change in my share section if the transaction is executed successfully.


Remove Liquidity​

Similarly to providing liquidity, you can also remove liquidity in the option panel by clicking the remove tab. You will see the LP token balance and decide the withdrawal amount. Once you input a valid number, it will calculate and display the service fee which will be illustrated in the next page. You can submit the transaction to your wallet and approve it. If the avaliable liquidity is insufficient, you may try again later.