1. Provide Liquidity on 1INCH
Learn how to provide liquidity on 1INCH
To provide liquidity to the 1INCH-SWISE pool, you first need to own some 1INCH tokens because you need to deposit equal parts (dollar value) 1INCH and SWISE into the pool. For example, at the time this document was written, to deposit 12,000 SWISE tokens into the pool, you also needed to provide 338 1INCH tokens.
The exact amount of 1INCH tokens you need depends on the amount of SWISE tokens you want to deposit in the pool and can be determined when you go through the liquidity provision process on the 1INCH DEX.
1INCH tokens can be bought at many exchanges or on the 1INCH DEX directly. How to buy 1INCH tokens is outside the scope of this document. If you need help, ask our community on Discord or Telegram - people there are friendly and willing to help.
Providing liquidity to the 1INCH-SWISE pool lets you earn interest in the form of shared trading fees. Whenever someone trades SWISE on 1INCH, part of the trading fees are distributed among all liquidity providers.
Go to the 1INCH DEX exchange and connect your wallet. We will be using MetaMask in this example, but the process is similar with other wallets. To connect your wallet, find the "Connect Wallet" button in the upper-right corner of the 1INCH website.
Once the wallet is connected, it's time to head to the 1INCH-SWISE pool and get started.
First, click on the pool you found in the first step. Click anywhere in the black space. The list entry will expand and look like this:
Next, click on the "Provide Liquidity" button in the lower right corner. A new window will open that will look like this:
As you can see in the screenshot above, before you can proceed, you have to unlock the tokens. This is required and will allow 1INCH to execute smart contract transactions on your behalf. Unlocking tokens costs a small amount of ETH fees.
To unlock, click on the "Unlock" button and follow the instructions given by 1INCH. You will have to confirm the transaction on your wallet.
Once the tokens are unlocked, you can provide liquidity. To do so, enter the amount of 1INCH tokens or the amount of SWISE tokens you want to provide. The amount of the other token will adjust accordingly.
To make the process a bit easier to understand, you can also enter the USD$ value in the corresponding field and it will adjust the token amounts automatically, according to the amount you specify. You can also click on the "Max:" link to provide the maximum amount you have available.
You can look at this example to get a general idea:
Here, we are providing roughly 12,000 SWISE tokens, which also means we have to provide around 327 1INCH tokens (note that these numbers will be different when you do this as prices fluctuate).
Once you have dialed in the number of tokens you want to provide to the pool, click on the "Provide liquidity" button. In the next step, you will have to confirm the transaction with your wallet. Once confirmed, you will get this screen:
Make sure you bookmark the link to the Etherscan transaction, you will need it to confirm everything went according to plan.
Once the transaction is confirmed on chain (see Etherscan), you are basically done. 1INCH will send you some 1INCH-SWISE LP tokens that represent your liquidity in the pool. You can use these LP tokens to farm for more 1INCH and SWISE tokens. Please find out how to do that in our farming guide.
Go back to the Pools page on 1INCH and expand the 1INCH-SWISE pool entry. There you can see your liquidity in the pool:
Note that the number of 1INCH and SWISE tokens will change constantly and will not be the same as you initially provided. This is because of the way liquidity pools work and is absolutely normal.
Unfortunately, there is no way to confirm this in MetaMask directly, as the ticker symbol for the token is too long and can't be displayed by MetaMask. However, you can simply head to the Etherscan link that was provided to you by 1INCH when you provided liquidity. Open the link and find the "Tokens Transferred" section. It will look something like this:
As you can see, the transaction transferred three tokens: 1INCH from your wallet to the pool, SWISE from your wallet to the pool, and the LP token from the pool to your wallet (last line).
You can also check your ETH address on Etherscan and you will find the same information there, confirming that you have the LP tokens.
Important: Unless you want to farm (see next chapter), do not sell or lose the LP tokens. They are the key to your funds in the pool. To withdraw your funds from the pool, you need the LP tokens.
Providing liquidity as described above will earn you interest from trading fees. They will accrue in your account in form of 1INCH tokens. This is automatic and will happen for as long as you provide liquidity.
However, that's not all. Remember that you received LP tokens for your liquidity? You can put those to work too by putting them into a farming pool. This will let you farm (earn) additional SWISE and 1INCH tokens. Please go to our farming guide below to find out how:
Note that if you are actively farming (see next chapter), you will have to exit the farm first. See the farming chapter for more details.
You can exit your liquidity stake at any time by removing it from the pool. Beware impermanent loss. To remove your liquidity and withdraw your funds, go to the Pool page on 1INCH, expand the 1INCH-SWISE pool and click on the "Remove Liquidity" button:
You will have to confirm the transaction with your wallet. Once the transaction is confirmed, you will find both your SWISE and your 1INCH tokens back in your wallet, including the interest you have earned. At the same time, your LP tokens will be removed from your wallet. So make sure you have them in your wallet before you try to withdraw. In this context, the LP tokens are basically the key to your funds in the pool.