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Trading on Augur Turbo
Earn Fees as a Liquidity Provider
Resources
Adding liquidity
How to earn fees from providing liquidity to a market
There are two options for adding liquidity,
1. Adding Liquidity to an existing pool
The APY is shown on the market card gives you an idea of what you can earn from your liquidity. This can change over time as more liquidity is added or removed from the pool.
Find a market you would like to provide liquidity. Enter the market and click the add liquidity button under the order ticket or under the liquidity tab.
This will bring up the add liquidity modal. Enter the amount of liquidity you wish to provide to the market and hit the add button to go to the confirmation screen.
Here you can confirm the market you're adding to and the amount you're depositing.
Liquidity Providers adding to an existing pool will receive a mix of outcome shares and LP Tokens. This is because 1 USDC is one of all outcomes and the prices need to be maintained. These positions will show up in your portfolio.
The LP tokens (Liquidity Provider) are what you will receive after depositing your funds into the pool. You can use these tokens to reclaim your share plus a portion of the trading fees.
The Trading Fee is charged to traders each time they make a trade on the market. This is split between all liquidity providers and your current allocation is shown next to Your Share of The Pool.
Hit the Confirm Add button and sign sign the transaction in your wallet
You may need to approve first. This approval is to allow the contract to spend your assets.
2. Adding Initial Liquidity to a Market
First you will need to go to the settings button at the top right of the page (or the slide out menu on mobile devices) and toggle the Show liquid markets only button to off. Any markets that have never had liquidity added to them will now show up.
Clicking the Earn Fees as a Liquidity Provider button will bring up the add liquidity modal.
From here enter the amount of liquidity you wish to provide to the market. Then set the prices (odds) for each outcome. These prices need to be between $0.02 and $1.00 and and the total of all outcome prices must add up to $1.
Hit the add button to go to the confirmation screen.
Here you can confirm the market you're adding to and the amount you're depositing.
The LP tokens (Liquidity Provider) are what you will receive after depositing your funds into the pool. You can use these tokens to reclaim your share plus a portion of the trading fees. Liquidity Providers who are first to add liquidity to a market will be given 100 LP tokens.
The Trading Fee is charged to traders each time they make a trade on the market. This is split between all liquidity providers and your current allocation is shown next to Your Share of The Pool.
Hit the Confirm Market Liquidity button and sign sign the transaction in your wallet
You may need to approve first. This approval is to allow the contract to spend your assets.