> For the complete documentation index, see [llms.txt](https://pacificdefi.gitbook.io/pacific-defi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pacificdefi.gitbook.io/pacific-defi/products/staking-and-farming-on-polygon/providing-liquidity.md).

# Providing Liquidity

{% hint style="info" %}
***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:***

* [*Impermanent Loss Explained*](https://academy.binance.com/en/articles/impermanent-loss-explained) 

***Liquidity Provider benefits:***

1. ***Trading fees:** By supplying liquidity on QuickSwap DEX, you as an LP are earning trading fees as users swap between tokens* 
2. ***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.*  
{% endhint %}

## 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](/pacific-defi/how-to-buy-pacific.md) section

**Step 3:** Bridge your PACIFIC tokens on BSC to Polygon via our bridge: 

{% embed url="<https://bridge.pacific-defi.com>" %}

Instructions to use the bridge can be found [**here**](/pacific-defi/products/staking-and-farming-on-polygon/stake-pacific.md)

**Step 4:** Make sure you add the Polygon PACIFIC contract address to your MetaMask and switch over to the Polygon network:&#x20;

**0x7Ce053907485Cf46B8dFcEC8763A5fAEc8E03eD9**

Your bridged PACIFIC tokens from BSC to Polygon will be found using the above contract address&#x20;

**Step 5:** On the QuickSwap DEX, go to this link to provide liquidity for the PACIFIC-MATIC LP pair:

{% embed url="<https://quickswap.exchange/#/add/ETH/0x7Ce053907485Cf46B8dFcEC8763A5fAEc8E03eD9>" %}

**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)&#x20;

![](/files/ORxUAh7b2UW8xmfu6AuV)

**Step 7:** MetaMask will prompt you to confirm the relevant transactions and to supply liquidity&#x20;

**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** &#x20;

**Step 9:** Congratulations! Now you can learn about How to Farm PACIFIC on Polygon&#x20;