Liquidity FAQ

What are APR Calculations on XenDEX

• Displayed APRs: APRs shown on XenDEX pools are extrapolated based on daily (default), weekly, or monthly performance. These figures are examples only; past performance does not guarantee future profits.

• Sources of APR:

  • Maker Fees: Earned from swaps executed within the pool.

  • Reward Emissions: Offered through ecosystem farms for eligible pools.

What are LP tokens?

When you add liquidity to a pool, you receive LP tokens representing your proportional share of the pool’s assets (e.g., DEX-USDC LP tokens for the DEX-USDC pool). These tokens allow you to reclaim your share of the pool at any time.

• Earning Fees:

  • Each swap incurs a 0.25% trading fee, distributed as follows:

    • 0.22%: Returned to the LP pool, increasing the value of LP tokens.

    • 0.03%: Allocated to $DEX staking rewards.

• Example: If a pool initially has 100 LP tokens representing 100 DEX and 100 USDC:

  • After trades increase the pool balance to 100.022 DEX and 100.022 USDC, each LP token is now worth 1.00022 DEX and 1.00022 USDC.

How to add liquidity?

• Access the Liquidity Section:

  • Select ‘Liquidity’ from the navigation menu.

• Choose a Pool:

  • Connect your wallet and search for a pool by entering a token mint address or ticker or browse the list of available pools.

  • Click ‘Deposit’ on the pool you wish to join.

• Select Tokens and Add Liquidity:

  • Choose the tokens you want to provide. Liquidity must be added in a 1:1 USD value ratio.

  • Enter the amount of one token; the other token amount will auto-adjust to match the ratio.

  • Click ‘Supply’ and approve the transaction in your wallet.

• Confirmation:

  • After confirming the transaction, you’ll receive LP tokens in your wallet.

How do I manage my liquidity?

• Navigate to Portfolio:

  • Go to the ‘Portfolio’ page and select ‘Standard’ under ‘My Positions’.

• Manage Your Position:

  • To reclaim tokens or increase your position, choose the desired action and confirm the transaction.

Are my LP tokens staked in farms still earning Fees?

Yes, the maker fees are compounded into the LP tokens.

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