Liquidity Pool

On the Marxstreet Exchange, liquidity will be managed in the form of non-fungible positions. You will still earn a share of the fees while providing liquidity. When you add your tokens to a Liquidity Pool, you will receive a Liquidity Provider NFT token and participate in its fees. Liquidity providers now have more control over the price range at which they wish to deploy their liquidity. So, when you add your tokens to the Liquidity Pool, you will create a new non-fungible liquidity position with its unique setup. Therefore, the liquidity position is NFT. Please note that these NFTs are transferable, and represent ownership of the underlying asset and the trading fees it earns. Trading fees are no longer automatically added to positions. You can claim it manually on each position details page. You can redeem your funds at any time by clearing your liquidity.

Active Liquidity and Price Range

Liquidity providers can configure their positions to only provide liquidity when prices are within a certain range. If the trading price moves out of that range, the position will consist of only one type of token in a pair and will become inactive.

Inactive liquidity positions will not participate in trading or earn any trading fees.

Concentrated Liquidity

Because liquidity providers can concentrate their token deposits to provide liquidity only within a certain price range. With the same number of underlying assets, it can support much larger trades.

This results in a much higher level of relative liquidity. And liquidity providers can earn more trading fees with the same amount of capital.

Generate Trading Fees

Providing liquidity rewards you in the form of trading fees when people use your liquidity pool to settle swaps.

Every time someone trades on Marxstreet , for every swap in each Exchange liquidity pool, depending on the liquidity pool fee level, the trader pays fees ranging from 0.01% to 1%.

Impermanent Losses

Providing liquidity is not without risk, as you may experience temporary losses.