Provide Liquidity
Liquidity pools are an important part of Pryzm. These pools allow users to trade assets with minimal slippage. By providing liquidity to pools, you can earn rewards from swap fees and incentives.
Pool Types
On Pryzm, there are two types of pools:
- YAMM Pools: These pools contain a cToken and all of its corresponding pTokens of differing maturity dates.
- AMM Pools: These pools function like traditional xyk pools, which contain two different assets.
YAMM Pool LP
Follow these steps to provide liquidity for YAMM Pools. You'll need a cToken or at least one type of pToken.
- Visit https://app.pryzm.zone/ and connect your wallet. Under the Earn tab, click Provide Liquidity.
- Select a yield pool to provide liquidity to. The Osmosis pool will be used in this example, which contains cOSMO and all different maturities of pOSMO.
Multi
To deposit multiple assets (cTokens and pTokens of different maturities), select the Multi tab. Skip down this page if you want to deposit a single asset.
- Enter the amounts of cToken or pToken maturities that you want to provide as liquidity. You can add different pToken maturities by clicking add another token. If you want to see the optimal distribution of tokens based on the amounts in your account balance, click Optimize.
- Once you have entered the correct amounts, click Provide Liquidity and sign the transaction in your wallet extension. Your liquidity will enter the pool, and you will receive an LP token.
Zero-Price Impact
To deposit a single asset into a pool without impacting price, select Zero-Price-Impact. With Zero-Price Impact Mode, you only need to deposit cTokens. Some of the cTokens are used to mint pTokens and yTokens. The pTokens and the remaining cTokens are used for liquidity, while the yTokens are returned to your wallet. This avoids buying pTokens to prevent price changes.
- Enter the amount of cToken to be deposited, and click Provide Liquidity. Sign the transaction in your wallet extension.
After finalizing the transaction, LP tokens will appear in your account.
AMM Pool LP
Users can provide liquidity to an AMM pool by depositing two different types of assets. You'll need to have both types of assets to deposit them into this type of pool.
- Visit https://app.pryzm.zone/ and connect your wallet. Under the Earn tab, click Provide Liquidity.
- Select a multi-asset pool to provide liquidity to. The INJ/USDC pool will be used in this example.
- Input the amounts you would like to deposit. Pryzm will balance the amounts for you to make sure that the pool is balanced and the price will not be impacted by your provision. Click Provide Liquidity and sign the transaction in your wallet extension.
After finalizing the transaction, LP tokens will appear in your account.
Withdraw
To withdraw your assets from an LP pool, you will need to deposit a pool's corresponding LP tokens.
- Visit https://app.pryzm.zone/ and connect your wallet. Under the Earn tab, click Provide Liquidity.
- Select the yield pool that corresponds to your LP tokens. The example will show how to withdraw from the Osmosis Pool by providing Osmosis LP tokens.
- Enter the amount of LP tokens you want to deposit to redeem your assets.
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Pryzm will show you the balances of the different assets from your position. Remember, because pools rebalance according to trades, the exact amounts of each asset that you provided will be different than the amounts you receive. However, the amount of assets will be proportionally equivalent to the amount of the assets initially provided. Your LP tokens represent a proportional share of the assets of the pool.
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Click Withdraw Liquidity and sign the transaction in your wallet extension.
After finalizing the transaction, your withdrawn tokens will appear in your account.