Providing Liquidity
Become a PACIFIC/MATIC Liquidity Provider
Risk of Impermanent Loss ("IL"):
When you are providing liquidity and become a liquidity provider (LP), the price of the tokens in a Liquidity Pool can move in different directions. The greater the move, the more impermanent loss a LP can suffer from.
Impermanent loss implies that this loss is temporary, however once the price of the tokens returns to the original value the user had invested, the loss is eliminated.
When providing liquidity to a liquidity pool, LPs earn trading fees as users swap between tokens within the pool.
Remember that impermanent loss can become permanent loss if the user decides to withdraw their liquidity and the token prices have diverged by a big proportion.
Learn more:
Liquidity Provider benefits:
Trading fees: By supplying liquidity on QuickSwap DEX, you as an LP are earning trading fees as users swap between tokens
Token rewards: By using your LP tokens (which you will receive after depositing in a liquidity pool), you are entitled to receive PACIFIC rewards on our platform
Why is providing liquidity important?
DeFi thrives off liquidity and it is essential for Pacific DeFi as a protocol to capture as much liquidity as possible during our growth phase. This is why Pacific DeFi is going multi-chain and having liquidity pools on BSC and Polygon to capture the liquidity.
Having deep liquidity is important for absorbing trading volumes. This helps smooth price movement and lessens volatility.
This also helps investors with large amounts of capital to invest in the protocol without massive slippage.
How to Provide Liquidity
Step 1: Read the information above and make sure you fully understand what you are doing
Step 2: To provide liquidity, make sure you've already swapped some PACIFIC into your wallet on BSC. If you currently do not have PACIFIC, please go to the How to Buy PACIFIC section
Step 3: Bridge your PACIFIC tokens on BSC to Polygon via our bridge:
Instructions to use the bridge can be found here
Step 4: Make sure you add the Polygon PACIFIC contract address to your MetaMask and switch over to the Polygon network:
0x7Ce053907485Cf46B8dFcEC8763A5fAEc8E03eD9
Your bridged PACIFIC tokens from BSC to Polygon will be found using the above contract address
Step 5: On the QuickSwap DEX, go to this link to provide liquidity for the PACIFIC-MATIC LP pair:
Step 6: Remember, you also need to also buy MATIC tokens to supply both MATIC and PACIFIC in equal proportions
(e.g. If you bridged $100 worth of PACIFIC to Polygon, you should also have $100 worth of MATIC tokens to supply equal amounts)
Step 7: MetaMask will prompt you to confirm the relevant transactions and to supply liquidity
Step 8: You will then receive your PACIFIC-MATIC LP tokens in your wallet on MetaMask on the Polygon network
If QuickSwap does not prompt you, add the PACIFIC-MATIC LP address here:
0xE05Ca986d0D7481FeBd7b68150c7D086f9Cc3293
Step 9: Congratulations! Now you can learn about How to Farm PACIFIC on Polygon
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