How to Add/Remove Liquidity

Overview

This guide explains how to provide liquidity to the CROSSD Pool and earn trading fees. CROSSD uses a Concentrated Liquidity system based on Uniswap V3, allowing liquidity providers (LPs) to set their desired price range to maximize capital efficiency.

By providing liquidity, you will receive a portion of the trading fees generated in the pool, and your position will be issued and managed as an ERC-721 NFT.

Before You Begin

Prerequisites

• CROSSx Wallet: A wallet compatible with the CROSS chain must be connected.
• CROSS Tokens: CROSS tokens are required for gas fee payments.
• Deposit Tokens: You must hold both CROSS and CROSSD tokens.

Important Information

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Impermanent Loss Warning

Providing liquidity does not guarantee returns. Impermanent loss may occur due to price fluctuations of the deposited tokens. Setting a narrower price range increases capital efficiency but also increases the risk of the price moving out of range.

Understanding Fee Tiers

The CROSSD Pool offers various fee tiers. Choose a fee tier that suits the characteristics of the token pair.

Understanding Price Range Settings

What Is Concentrated Liquidity?

Unlike traditional AMMs, the CROSSD Pool allows you to concentrate liquidity within a specific price range. This enables you to earn higher fee returns with the same amount of capital.

Preset Options

The following presets are available for quick setup:

• Stable: ±3 Ticks (suitable for stablecoin pairs)
• Wide: -50% ~ +100% (general volatility)
• General Decline: -50% (when expecting a decline)
• General Rise: +100% (when expecting a rise)

Providing Liquidity

Step 1: Connect Your Wallet

1. Visit the CROSSD Pool page.
2. Click the "Connect Wallet" button in the top right corner.
3. Select your CROSSx wallet and approve the connection.

Step 2: Select Pool and Fee Tier

1. Click the "Add Liquidity" button.
2. Select the token pair: CROSS / CROSSD
3. Select a fee tier.
   • Current TVL and trading volume are displayed next to each fee tier.

Step 3: Set Price Range

1. Choose between Full Range or Custom Range.

2. When setting a custom range:

   • Method 1: Drag the sliders on the chart to set the range
   • Method 2: Click a preset button (Stable, Wide, etc.)

3. The entered prices are automatically adjusted to valid tick units.

4. You can visually verify the current price and your set range on the chart.

Step 4: Enter Deposit Amount

1. Enter the amount for either CROSS or CROSSD.
2. The required token ratio is automatically calculated based on the current price and the set price range.

Step 5: Configure Slippage (Optional)

1. The default is set to Auto.
2. If needed, you can enter a custom value or select from presets (0.25%, 0.5%, 1%).

Step 6: Approve Tokens and Provide Liquidity

1. Click the "Approve CROSSD" button and approve it in your wallet.

   • An approval transaction is required for tokens being used for the first time.

2. After approval, the "Add Liquidity" button becomes active.

3. Click the "Add Liquidity" button.

4. Review the following information on the preview screen:

   • Token amounts to deposit
   • Set price range
   • Estimated APR
   • Fee Tier

5. Click the "Confirm" button and approve the transaction in your wallet.

Step 7: Verify NFT Receipt

Once the transaction is complete:

1. A position NFT (ERC-721) will be minted to your wallet.
2. You can view the created position in the "My Position" section.
3. The NFT contains the following information:
   • Pair information and fee tier
   • Set price range
   • Current liquidity value
   • Accumulated fees

Adding Liquidity

You can add additional liquidity to an existing position.

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Note: The price range of an existing position cannot be modified. If you want a different price range, please create a new position.

1. Select the position you want to add to in "My Position".
2. Click the "Add Liquidity" button.
3. Enter the amount of tokens to add.
   • The amount of the opposite token is automatically calculated based on the current price.
4. Click the "Confirm" button and approve the transaction.
5. The liquidity data of the existing NFT will be updated.

Removing Liquidity

You can withdraw some or all of the liquidity from a position.

1. Select the position you want to remove from in "My Position".
2. Click the "Remove Liquidity" button.
3. Set the removal percentage:
   • Manual entry (1–100%, integers only)
   • Preset selection: 25%, 50%, 75%, Max
4. Review the estimated amount to receive.
5. Click the "Remove" button and approve the transaction.

NFT status after removal:

• Partial removal: NFT is retained, liquidity amount updated
• Full removal: NFT is burned

Collecting Fees

You can withdraw accumulated trading fees separately. Your principal remains intact.

1. Select your position in "My Position".
2. Click the "Collect Fees" button.
3. Review the accumulated fee amount.
4. Click the "Collect" button and approve the transaction.
5. Fees are transferred to your wallet, and the accumulated fee counter is reset.

Understanding Position Status

In Range

• The current token price is within the set price range
• Fees are being accrued from trades
• Displayed with a green indicator on the NFT card

Out of Range

• The current token price has moved outside the set price range
• Fee accrual has stopped
• Displayed with a gray or yellow indicator on the NFT card

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Tip: If your position remains Out of Range for an extended period, consider removing the liquidity and creating a new position at the current price.