Burn & Earn

Burn (permanently lock) CLMM and CPMM (CP-Swap) positions while retaining ownership of LP fees and rewards.

On XenDEX, the Burn & Earn feature allows users to lock liquidity positions permanently, offering a streamlined way to secure trading fees and rewards over time. When a position is locked, an NFT representing the right to claim future yield is issued to the liquidity provider.

At this time, Burn & Earn supports only the latest CPMM (CP-Swap) pools and does not include Hybrid AMM pools. This feature is optional.

Important Note for Concentrated Liquidity Pools

For concentrated liquidity pools, Burn & Earn is recommended only for full-range positions. Once an LP token is locked, the provider cannot withdraw or adjust the position to rebalance liquidity within a specified range.

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Lock Liquidity Permanently

Technically, the NFT and LP tokens representing your initial position are locked, not burned. To permanently lock liquidity for a specific position, follow these steps:

1. Create a Pool Start by creating either a Constant Product Pool or a Concentrated Liquidity Pool with a full-range position.

2. Access the Burn & Earn Interface Navigate to the Burn & Earn interface by selecting 'Create' on the liquidity page.

3. Select Your Position Choose the position you wish to lock. Verify the pool and position details carefully.

4. Confirmation Review the details, including the NFT address and position size, and type the confirmation statement to proceed.

   Note: Once the LP token is locked, the liquidity deposited in this position is permanently inaccessible for withdrawal or management.

5. Finalize and Lock Click Confirm to permanently lock your liquidity. You will receive an NFT, known as the XenDEX Fee Key, which represents your right to claim yield from trading fees.

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XenDEX Fee Key

The XenDEX Fee Key is a transferable NFT representing your claim to future rewards and trading fees generated by the locked liquidity position.

Claiming Fees and Rewards

Your locked position will appear on the Portfolio page, similar to a standard position. You’ll be able to monitor and claim fees and rewards directly from this interface.

Monitoring Locked Liquidity

The percentage of locked liquidity within each pool is visible on the Liquidity page. This feature provides transparency for both users and third-party integrations.