In this tutorial, we are going to show you how to add liquidity to the diesel pool LEN:LENM.
What is a diesel pool?
On the second layer of hive there are liquidity pools that are called diesel pools. One of these pools pairs our two Liotes tokens LEN and LENM. People who provide liquidity for this pool get daily dividends in a number of different tokens.
How to provide liquidity?
There are two user interfaces that allow you to access these diesel pools. There is tribaldex and beeswap. We find the second one a bit more userfriendly.
In order to pair the two tokens you need to have the same value of LEN and LENM. If you have only one of the tokens, the easiest thing is to actually swap half for the other token. Once you have a same value of LEN and LENM, you can add them to the pool.
What is the advantage of providing liquidity
There is a reward pool linked to this diesel pool and after 24 hours, you will get your first daily payout according to how big your share is in the liquidity pool. The more tokens you have in the liquidity pool, the more daily rewards you will get.
In addition to that, each swap between the two tokens will generate a 0.25% fee that will be split among the liquidity providers. So you will earn fees and rewards just for providing liquidity to this diesel pool.
Is it possible to take the money out again?
You can always reduce the liquidity that you provide partially or totally. This will be done in a couple of seconds.
Are there fees?
There are no fees when you add or remove liquidity. There are only 0.25% fees when you swap from one token to the other and these fees go to the liquidity providers.