Adding Liquidity using Bitget Wallet

Liquidity pools, a pivotal innovation in decentralized finance (DeFi), have transformed market-making activities by amassing funds in smart contracts for decentralized trading and lending. These tools reward liquidity providers with trading fees in line with their share in the total pool, facilitating the democratization of Web3 finance. Attracting significant individual and institutional investments, liquidity pools are embedded in DeFi platforms like 1inch, Aave, and Balancer. These have revolutionized finance by providing innovative methods for earning passive income and enhancing trading efficiency and flexibility. Check out this article on Bitget Wallet (Previously BitKeep) Academy for more information about liquidity pools.

How to Add Liquidity Using Bitget Wallet (Previously BitKeep) Wallet?

1. Launch Bitget Wallet (Previously BitKeep) Wallet and select “DApp” to access the Bitget Wallet (Previously BitKeep) DApp browser. Choose "DeFi" and look for the DeFi platform where you want to contribute liquidity. In this example, we'll use Aave.

2. Your Bitget Wallet (Previously BitKeep) Wallet will automatically connect to the DApp, or you can connect your wallet manually if it does not. In Aave, there are multiple networks offered for users to provide liquidity. Select your preferred network.

3. After choosing the network, look for the available liquidity pool on the chosen DeFi platform. For example, the MATIC pool is selected as it offers a decent 2.74% APY. Enter the supply amount and confirm your transaction. You can withdraw your funds anytime and collect fees for your contribution period.

4. A notification window will pop up after the successful addition to the liquidity pool. Congrats! You have added to the liquidity pool using Bitget Wallet (Previously BitKeep) Wallet and earned trading fees proportionate to your share. You can also add the LP token to your Bitget Wallet (Previously BitKeep) Wallet for easy tracking on the homepage.

Adding liquidity to a pool is a great way to participate in the burgeoning DeFi ecosystem and earn passive income from trading fees. However, it's crucial to understand the associated risks, such as impermanent loss, before deciding to become a liquidity provider.