Earn LP Rewards

Providing liquidity on H2 Finance is an excellent way to earn passive income from trading fees.

Step by Step Guide

Step 1: Ensure your wallet is connected and set to the correct network.

Step 2: Select “Pool” in the navigation bar, then click on “Add Liquidity.”

Step 3: Navigate to the “Flexible V3” or “Classic V2” tab, depending on your preference.

Step 4: Pick the token pair you want to provide liquidity for, and enter the amount or select a percentage.

For Classic V2 pools, a flat 0.3% fee is applied to every token swap within the pool, which is distributed proportionally among all LPs based on their share.

Step 5 (For Flexible V3 Only): Choose from the available fee tiers (0.01%, 0.05%, 0.3%, 1%) and set your desired price range by dragging the price cutoff lines or entering the min and max prices.

Note: For Flexible V3 pools, there are multiple pools for each token pair, each with a specific fee tier. Swaps are routed through the most efficient pool, and you can choose a tier that matches your strategy, potentially earning higher fees.

Step 6: Review your settings and amounts, then click “Add” to provide liquidity. If it’s your first time providing liquidity for this token pair, click "Enable" to grant H2 Finance permission to interact with your wallet.

Last Step: Click “Supply” and confirm the transaction in your wallet. Once completed, your contribution will be added to the pool, and you'll receive LP tokens.

What is the difference between Classic V2 and Flexible V3 liquidity pools?

The primary difference between V2 and V3 liquidity pools lies in their underlying mechanics.

Classic V2 Liquidity Pools

Uniform distribution: Liquidity is evenly spread across the entire price range.
Lower capital efficiency: Less efficient use of capital.
Simpler structure: Easier for new users to manage.

Flexible V3 Liquidity Pools

Concentrated liquidity: Providers can focus funds on specific price ranges.
Higher capital efficiency: More efficient use of capital.
Increased complexity: Requires strategic thinking.
Fee tiers: LPs can choose between higher fees with lower liquidity or vice versa.

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Last updated 9 months ago

Step by Step Guide

Step 1: Ensure your wallet is connected and set to the correct network.

Step 2: Select “Pool” in the navigation bar, then click on “Add Liquidity.”

Step 3: Navigate to the “Flexible V3” or “Classic V2” tab, depending on your preference.

Step 4: Pick the token pair you want to provide liquidity for, and enter the amount or select a percentage.

For Classic V2 pools, a flat 0.3% fee is applied to every token swap within the pool, which is distributed proportionally among all LPs based on their share.

Step 5 (For Flexible V3 Only): Choose from the available fee tiers (0.01%, 0.05%, 0.3%, 1%) and set your desired price range by dragging the price cutoff lines or entering the min and max prices.

Last Step: Click “Supply” and confirm the transaction in your wallet. Once completed, your contribution will be added to the pool, and you'll receive LP tokens.

What is the difference between Classic V2 and Flexible V3 liquidity pools?

The primary difference between V2 and V3 liquidity pools lies in their underlying mechanics.

Classic V2 Liquidity Pools

Uniform distribution: Liquidity is evenly spread across the entire price range.

Lower capital efficiency: Less efficient use of capital.

Simpler structure: Easier for new users to manage.

Flexible V3 Liquidity Pools

Concentrated liquidity: Providers can focus funds on specific price ranges.

Higher capital efficiency: More efficient use of capital.

Increased complexity: Requires strategic thinking.

Fee tiers: LPs can choose between higher fees with lower liquidity or vice versa.