Providing Liquidity
Become a PACIFIC/BNB 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 PancakeSwap DEX, you as an LP are earning trading fees as users swap between tokens. You'll earn 0.17% of the trading value as a fee on PancakeSwap, which is deposited back into the pool
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. If you currently do not have PACIFIC, please go to the How to Buy PACIFIC section
On PancakeSwap, instead of being on "Exchange" tab, go to the right tab called "Liquidity" (See below)
Step 3: Click on "+ Add Liquidity" button and you'll be sent to an interface similar to the swapping interface
Step 4: You'll then need to paste the PACIFIC contract address into the search bar after clicking on "Select a currency". PACIFIC contract address: 0x054ae19876b2a669c282503d5a76313290bc6453
You'll then see two pairs (BNB and PACIFIC) as per below:
Hit "MAX" on PACIFIC or however many tokens you'd like to deposit into the liquidity pool. Then hit "Enable PACIFIC" then "Supply" at the bottom. You'll be prompted to "Confirm Supply" - please go do that
MetaMask will prompt you to confirm, hit confirm
Step 5: Congratulations! Now you can learn about How to Farm PACIFIC!
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