How to Add OAP Liquidity to Uniswap
OAP has been listed on Uniswap. We are very happy with the turn up of liquidity providers of OAP. However, to further improve the liquidity pool (LP) of OAP, we shall discuss how the LP works and how you can contribute to it.
Uniswap is a trustless decentralized exchange for Ethereum (tokens) which allows third party individuals to setup their own LP and contribute to it. This means you can easily trade any ERC20 token for Ethereum or any other ERC20 token. Users of the DEX basically are trading against the LP. Anybody can swap tokens at any point of time. Since you are swapping directly from your own Metamask/Ethereum wallet, your funds are always in your own control, as opposed to centralized exchanges in which the exchange controls your funds.
The fees per swap are 0.3% of the total swapping volume. LP providers share the fees which are accumulated during every swap through Uniswap, based on the proportion you have contributed to the LP. e.g. if you contributed 10% of the total LP, you shall receive 10% of the total fees. These fees are automatically contributed to the LP, so your total personal LP contribution keeps on increasing according to accumulated fees.
So what can one contribute to the LP on Uniswap?
You can create a new Uniswap pair for any token combination as you wish. One could add liquidity to the LP of OAP-ETH. However, for somebody to contribute to the LP, one would require an equal amount in USD value for both tokens. e.g. if you want to contribute to $1,000 to OAP-ETH LP, you need $500 in OAP and $500 in Ethereum. As a result, if a regular user uses Uniswap to swap OAP for Ethereum, the OAP ends up in the LP and the Ethereum ends up in the user’s wallet. Based on the swapping behavior, the Ethereum and SOUL in the LP will fluctuate, while the LP providers accumulate trading fees.
How does one create or contribute to the LP on Uniswap?
If you wish to contribute to OAP-ETH, you need to visit https://liquidity.openalexa.com
fill the form and add your address for authorization, this is needed to avoid any liquidity dumps. Once address is authorized, you can add liquidity following these steps:
To begin, you will need OAP and ETH in your Metamask wallet and some ETH for the gas fees.
Step 1. Go to https://liquidity.openalexa.com
Once you are on the Uniswap website connect your Metamask wallet by clicking on “Connect to a Wallet” in the top right corner.
Step 2. Add Liquidity
Enter the amount of OAP you want to add to the liquidity pool. It will automatically fill the ETH input box with an equivalent amount.
Click on the “Supply” button.
Step 3. Confirm the transaction in Metamask
Now, you need to select the amount of OAP Token you want to buy, and you will be able to see the concurrent amount of ETH required to make the purchase.
You will also need to confirm the transaction in your Metamask wallet. Your wallet will show you the gas fee and the total transaction amount.
If everything looks correct click on Confirm.