Liquidity pools

Liquidity pools #

A liquidity pool is a digital supply of cryptocurrencies backed by a smart contract, which results in the creation of liquidity that allows transactions to be completed faster.

Disclaimer. Please note that decentralized finance (DeFi) and, in particular, liquidity provisioning and liquidity farming carry increased risks, such as operational risks, inherent technology risks, risk of impermanent loss, risk of attackers discovering and exploiting blockchain protocol or smart contract vulnerabilities, etc. .d. You should do your own research (DYOR) to determine whether these risks are acceptable to you. More details

Liquidity pools on the Meteora DEX exchange are created for the CLC/SOL and CLC/USDT currency pairs.

Liquidity pool Meteora MLP CLC-SOL #

Liquidity pool address: https://app.meteora.ag/pools/GzuKvv69kkMKVszH8nLU56Xj6oxVjAqdje7KJcNhXGuP

Liquidity pool token: GkP25SnEDUD5nKm96c8wmSvcVMuxZ1nKfqu1z8kDQWzU

Meteora MLP CLC-USDT Liquidity Pool #

Liquidity pool address: https://app.meteora.ag/pools/BmHbNuF7pQ83n34Nip5h3pvpebr3Unwr23iPMAoXjRek

Liquidity pool token: BELjK3T8MR42XjRDmk4GEQBPQxNb3zsxEsG9GiBMT7EW

How liquidity pools work #

Anyone can invest in a liquidity pool, but it is important to remember that investments in a liquidity pool can only be made using two tokens (depending on the pool) in equal shares.

For example, if you want to invest 10 USD worth of CLC, you need to have 10 USD in both the SOL token and the USDT token.

When investing, both tokens are sent from your wallet to the liquidity pool. You can withdraw funds at any time.

What profit does the user receive when investing? Exchange of SOL tokens by other users to CLC and back in the liquidity pool occurs with a commission of 1%. Each user who invested in the pool receives a portion of the commission. This income automatically goes into the pool, thereby increasing the investor’s share. Thus, when withdrawing funds from the pool, the user will receive more tokens than they originally invested.

Also, when investing in a pool, you receive special MLP tokens (Meteora LP), which are confirmation of your share in the pool. These tokens are sent to your wallet.

Additional rewards in krypton #

All MLP (Meteora LP) liquidity token holders receive additional rewards in the KR (Krypton) token. To earn additional crypto rewards, you simply need to store MLP tokens in your wallet. KR token rewards will be automatically sent to this wallet once a day.

The current yield of Krypton rewards is calculated solely based on the latest Krypton bonus for each liquidity pool. The administration independently determines the size of the bonus in krypton, based solely on its own considerations, including the market situation, the need for additional liquidity, the liquidity balance in the pools, etc. Accordingly, the size of the bonus in krypton can be changed by the administration at any time without additional notice.

How to invest #

To invest in a pool, go to the liquidity pool address and connect your wallet. All actions from mobile devices must be performed in the built-in browser of your wallet. If you have the automatic page translation feature enabled in your browser, you will need to disable it. Automatic transfer may negatively affect the work with the wallet.

To connect your wallet, click the Connect Wallet button in the upper right corner.

Connection, step 1

Then you need to choose your preferred wallet - Phantom or Solflare.

Connection, step 2

And the last step is to connect your wallet using the Connect button.

Connection, step 3

Now let’s move on to adding tokens to the pool. We select the number of CLC tokens that we want to invest. The system will automatically show how much you need to invest in SOL or USDT tokens. You can also enter in the reverse order: select how much SOL or USDT you want to invest, and the system will calculate how much CLC you need to have.

Add to the pool, step 1

Then check the confirmation box and click Deposit.

Add to the pool, step 2

And we confirm the transaction in the wallet.

In this window you will see how many tokens will be sent from your wallet to the pool. It also shows the number of liquidity pool tokens you will receive and the transaction fee. The first time an increased commission is charged as a Meteora LP token account is created. When you subsequently add funds to the pool, the commission will be significantly lower.

How to withdraw tokens #

Withdrawal of tokens from the pool is available on the liquidity pool page. To withdraw tokens, you need to go to the Withdraw tab and enter the number of Meteora LP tokens you want to withdraw.

Withdrawal from the pool, step 1

In this window you can see how many CLC and SOL tokens you will receive after withdrawing Meteora LP from the pool. All you have to do is click the Withdraw button and confirm the transaction in your wallet.

Withdrawal from the pool, step 2

After confirmation, you will receive CLC and SOL tokens to your balance.

Commissions #

When you first add tokens to the liquidity pool, you will be charged a one-time fee of about 0.0025 - 0.003 SOL. This fee is charged once to any wallet that deposits tokens into the liquidity pool for the first time. In addition, for withdrawals from the pool and adding tokens to the pool, the standard blockchain commission will be charged from the wallet, which is about 0.00001 SOL.

Don’t forget that there is a minimum balance of 0.00203928 SOL on the Solana blockchain that cannot be spent.

The certificate indicates the approximate amount of the commission. To know the exact amount of commissions, do your own research.