How to add tokens to SushiSwap Exchange as an LP
Click the large "Add Liquidity" button
Step 2:
Select which token pair you want to add liquidity for:
Step 3:
Fill in the amounts you want to add to the liquidity pool.
It may ask you to "Approve" the tokens - you will have to send these "approve transactions" first.
Once you've approved the token you can hit "Supply"
Then a transaction will pop-up for you to sign in your wallet (like MetaMask) - after the transaction is complete you will have successfully added liquidity.
Step 4:
The transaction will provide you with some "SLP" tokens in your wallet. These are Sushiswap LP tokens and represent the share you've deposited in the pool. All pools are labeled as SLP but represent different pools.
Step 5:
If you click the arrow, the drop-down menu will show you more details about the pool including your shares, and options to add or remove liquidity.
Congratulations, you have successfully staked your tokens as a "Liquidity Provider" in SushiSwap. This means when people make a trade you will be eligible for part of the 0.25% trade reward.
How does the trade fee reward work?
Every time a user trades between $SUSHI and $ETH a 0.3% fee is taken on the trade. 0.25% of that trade goes back to the the LP pool.
If previously there were 100 SLP tokens representing 100 ETH and 100 SUSHI each token would be worth 1 ETH & 1 SRM.
If one user trade 10 ETH for 10 SUSHI, and another traded 10 SUSHI for 10 ETH, then there would now be 100.025 ETH and 100.025 SUSHI.
This means each LP token would be worth 1.00025 ETH and 1.00025 SUSHI now when it is withdrawn.
Does this mean I am also farming new Sushi?
No. Once you have the SLP tokens you'll need to go to sushiswapclassic.org/farms to also farm them for new Sushi rewards each block.
Last modified 2yr ago