Liquidity

Liquidity is crucial for ensuring efficient and stable trading on Swamps L2. Our platform supports robust liquidity pools that facilitate quick token swaps with minimal slippage. By contributing to these pools, liquidity providers earn rewards, enhancing their contribution value while supporting the ecosystem. Here’s a detailed look at the rewards structure for providing liquidity on Swamps

Revenue Share: Contributors to liquidity pools earn 0.4% from swaps transactions processed in the pool, proportional to their share of the pool's liquidity, utilizing our V2 Liquidity protocol.

LP Tokens and Staking: Upon adding liquidity, you will receive LP tokens as proof of your contribution. These tokens can be staked in stacked positions, where you will earn xGSWP tokens. Staking your LP tokens not only amplifies your earning potential but also secures your position in the liquidity pool.

spNFT for Enhanced Rewards: In exchange for your LP tokens, you will obtain spNFTs (stacked positions NFTs). These NFTs can be added to a HyperPools, where they attract additional xGSWP earnings, further increasing the rewards from your initial liquidity provision.

GSWP Staking: If you possess GSWP tokens, you can stake them to earn xGSWP, which are vested over time. This process converts your GSWP into xGSWP, seamlessly integrating with the Swamps reward ecosystem.