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Add Liquidity

Add liquidity to earn a share of trading fees. AchSwap supports both V2 classic pools and V3 concentrated liquidity.

Understanding Liquidity Providing​

When you add liquidity to a pool:

  1. You deposit two tokens (e.g., USDC and ACHS)
  2. You receive LP tokens (V2) or an NFT position (V3)
  3. Traders pay fees when swapping through the pool
  4. You earn a pro-rata share of those fees

V2 Liquidity (Classic)​

V2 provides liquidity across the entire price range - like a traditional AMM.

Adding V2 Liquidity​

  1. Navigate to Add Liquidity
  2. Select V2 mode
  3. Choose your token pair (e.g., USDC/ACHS)
  4. Enter amounts for both tokens

Understanding Ratios​

The interface shows:

  • Current Ratio - Tokens in the pool
  • Your Deposit - What you're adding
  • Pool Share - Your % of total liquidity

Example​

Pool Status:
- USDC: 100,000
- ACHS: 250,000
- Total LP Tokens: 10,000

Your Deposit:
- USDC: 1,000
- ACHS: 2,500

Your Share: 1% (100 / 10,000)

Claiming Fees​

V2 fees are auto-collected when you remove liquidity. There's no separate claim step.

V3 Liquidity (Concentrated)​

V3 allows you to concentrate your liquidity within a specific price range, earning more fees on the same capital.

Key Concepts​

TermDefinition
TickPrice granularity in V3
Fee TierTrading fee percentage (0.01% - 10%)
PositionYour liquidity commitment
RangePrice min and max for your position

Fee a Tiers​

Choose fee tier based on your strategy:

TierBest For
0.01%Stablecoin pairs
0.05%Similar assets
0.30%Standard pairs (USDC/ACHS)
1.00%Exotic pairs
10.00%Very volatile pairs

Adding V3 Liquidity​

  1. Select V3 mode
  2. Choose your token pair
  3. Select a fee tier (0.30% for USDC/ACHS)
  4. Enter deposit amounts
  5. Choose a price range:
    • Full Range - Across all prices
    • Custom Range - Specific price bounds
  6. Review the APR estimate
  7. Click Add Liquidity

Advanced Mode​

For experienced users:

  • Set exact tick boundaries
  • Fine-tune price range
  • Monitor pool health

Price Range Selection​

Choosing the right range is crucial:

  • Narrow Range - More fees if price stays in range, but risk of no trading
  • Wide Range - More stable, less fees per swap
  • Full Range - Like V2, no concentration risk

Pool Health​

The V3 interface shows pool health:

  • Green - Good range selection
  • Yellow - Consider widening range
  • Red - Out of range, no fees earned

Migrating from V2 to V3​

If you have V2 LP positions:

  1. Go to Add Liquidity
  2. Select V2 tab
  3. See your existing positions
  4. Click Migrate to move to V3
  5. Set your V3 parameters
  6. Confirm migration

Expected Returns​

V2 Returns​

V2 returns depend on:

  • Your share of total liquidity
  • Trading volume in the pool
  • Fee tier (fixed at 0.3%)

APY calculation:

APY = (Your Share × Annual Volume × 0.3%) / Your Liquidity

V3 Returns​

V3 returns can be higher due to concentration:

  • 1x concentration = Similar to V2
  • 10x concentration = ~10x fees (if price stays in range)
  • 100x concentration = ~100x fees (if price stays in range)

The interface shows estimated APR based on recent volume.

Risks​

Impermanent Loss​

When you provide liquidity:

  • If token prices change significantly
  • You may lose value vs. just holding
  • This is "impermanent" until you withdraw

V3 Specific Risks​

  • Out of Range - No fees earned if price moves outside your range
  • Full Range - Lower returns but no range risk

Removing Liquidity​

See Remove Liquidity for withdrawal instructions.

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