Provide Liquidity

Alligator is a decentralized exchange. As such, it operates by having liquidity pools into which token pairs are deposited and an automated market maker which handles the balancing of the pools.

In return for providing liquidity, users are rewarded in the form of fees collected from each transaction, relative to their share of the pool. On each transaction, 0.25% of the value is rewarded to all providers in the respective pool.

Add liquidity to an existing pool

To provide liquidity, visit the Pools page and choose the desired token pair from the list.

Enter the token amounts you wish to deposit in the pool. The app will automatically calculate the pair token amount based your input. If necessary, approve the transaction by clicking on the Approve button(s).

Once you have all the approval, click the Supply button to add liquidity to the pool.

Create a new pool

If the desired pool does not exist yet, or is not visible in the list, you can provide liquidity by clicking on the Add Liquidity button.

If a pool does not exist yet, you will be able to create a new one. Specify your desired token pair and enter the amounts you wish to deposit. If you are creating a new pool, you will be allowed to set the initial price of the pool. In other words, the ratio of tokens provided by you will determine the initial trade price between the token pair.

Liquidity provision rewards

In exchange for providing liquidity, Alligator will issue Liquidity Pool (LP) tokens to you. The fees that are collected from trading are deposited directly into the pool. Therefore, with each trade the value of your LP token increases. When you decide to withdraw your tokens, you will receive the initial value you deposited, as well as additional tokens from any fees collected.

Note that the pool information shown on the Pools page is derived from the amount of available LP tokens you hold. Any tokens deposited in a farm will not be shown here.

Remove liquidity

If you wish to withdraw tokens from a pool, select the desired pool from the Pools page (note: all pools in which you have deposited tokens will appear in the My Pools tab).