By adding liquidity to a pool on zkSync labs, you will receive LP (liquidity provider) tokens. These tokens represent your share of the pool and can be traded or held for future value.
To add liquidity to zkSync labs, follow these steps:
Go to the ‘’Trade -> Liquidity’’ tab on the zkSync labs platform.
Select the tokens you wish to add to the liquidity pool. In this example, we will use $ZLA and USDT.
Enter the amount of tokens you wish to add to the pool.
The system will automatically calculate the amount of LP tokens you will receive in return.
Approve the transaction in your wallet. Make sure you have enough funds to cover the transaction fees.
Once the transaction is confirmed, you will receive your LP tokens.
Remember that by adding liquidity to the pool, you are exposed to impermanent loss risks. Impermanent loss is a temporary loss of funds caused by changes in the ratio of token prices in the pool. You can learn more about impermanent loss by clicking here.
To wrap your LP token into a staked position, go to the ‘’Earn -> My Positions’’ tab and select the position you wish to wrap. Then, click on ‘’Wrap’’ and choose the duration of the lockup period. Once you confirm the transaction, you will start earning additional rewards on top of the trading fees generated by the liquidity pool.
By providing liquidity on zkSync labs, you will earn a slice of each transaction fee on the pool. Additionally, you can create staked positions with LP tokens to earn farming emissions and additional yields from incentive pairs and Chemical pools.
For more information on adding liquidity, check out the video tutorial.