KwikTrust is taking a significant step forward in enhancing the utility and accessibility of its native token, KTX, within the cryptocurrency ecosystem.
In a strategic move to grow and support the community and customers, we at KwikTrust announce the creation of a new market on Uniswap V2, a leading decentralized exchange protocol on the Polygon blockchain.
This initiative not only opens up new trading opportunities for KTX token holders but also presents them with the prospect of earning from trading fees through liquidity provision.
Providing Liquidity on Uniswap V2 for KTX/MATIC
Uniswap V2 is a popular decentralized exchange (DEX) that allows users to swap tokens directly without the need for an intermediary. Liquidity providers (LPs) are essential for the smooth functioning of Uniswap, as they add liquidity to trading pairs by depositing equal amounts of both tokens.
This article will guide you through the process of providing liquidity on Uniswap V2 for the KTX/MATIC trading pair.
Before you begin:
- Ensure you have KTX and MATIC tokens: You will need equal amounts of both tokens to deposit into the Uniswap liquidity pool.
- Have a Uniswap-compatible wallet: MetaMask is a popular choice and works seamlessly with Uniswap V2, but other wallets like WalletConnect can also be used.
- Understand the risks involved: Impermanent loss is a potential risk associated with liquidity provision. Research impermanent loss before committing your tokens.
Adding KTX to your wallet:
Token Address: 0x60e6895184448f3e8ef509d083e3cc3ac31f82fd
How to add liquidity to existing KTX-MATIC Pool in Uniswap V2:
- Navigate to: https://app.uniswap.org/add/v2/ETH/0x60E6895184448f3e8EF509D083e3cC3AC31F82Fd
- Select Polygon: Navigate to the top right corner and click the drop down menu. Choose polygon from there.
- Once Polygon is selected you will automatically see an existing KTX-MATIC Pool created.
- Enter token amount: For the sake of this guide let’s say you deposit $0.5 MATIC & $0.5 KTX you will now own 1% of the liquidity pool.
- Approve the transaction: Review the transaction details carefully and click “Approve” if you agree.
- Confirm the transaction: Go to your wallet and confirm the transaction.
- Supply liquidity: Review the amount and click “Confirm Supply”
Monitoring your liquidity position:
- You can track your LP tokens and their associated fees on the Uniswap interface under the “Pools” tab.
- Uniswap charges a 0.3% fee on all swaps that occur within the pool, which is distributed proportionally to LPs based on their contribution
Important considerations:
- Impermanent loss: As mentioned earlier, impermanent loss is a risk associated with liquidity provision. It occurs when the price of one of the tokens in the pair deviates significantly from the price at which you deposited them.exclamation
- Trading fees: Uniswap charges a 0.3% fee on all swaps, which can impact the overall returns you earn from providing liquidity.
- Unwinding your liquidity position: You can withdraw your liquidity from the pool at any time. However, the process involves claiming your LP tokens and converting them back to the underlying KTX and MATIC tokens.
By providing liquidity on Uniswap V2 for the KTX/MATIC trading pair, you contribute to the smooth functioning of the decentralized exchange and earn fees from trades that occur within the pool. However, it’s crucial to understand the associated risks before committing your tokens.
