Liquidity provision is a way to earn passive income by providing liquidity to a decentralized exchange (DEX). 1inch is a DEX that allows users to trade cryptocurrencies and also provide liquidity. Here’s a step-by-step guide on how to use 1inch for liquidity provision:
- Connect your wallet to 1inch: In order to provide liquidity on 1inch, you will need to connect a wallet to your 1inch account. This can be done by going to the “Wallets” page and following the prompts. 1inch supports various wallets, including MetaMask and Ledger.
- Select the token pair you want to provide liquidity to: Once your wallet is connected, you can select the token pair you want to provide liquidity to by going to the “Add liquidity” page.
- Input the amount of tokens you want to provide: Input the amount of tokens you want to provide in the input field provided.
- Confirm the transaction: Review the details of the transaction and confirm the transaction.
- Wait for the transaction to be confirmed: Once the transaction is confirmed, your tokens will be added to the selected liquidity pool.
- Collect your rewards: The rewards for providing liquidity will be credited to your account automatically. You can claim them any time you want.
It’s important to note that liquidity provision can be risky and it’s important to be aware of the risks before providing liquidity. Also, the rewards can be highly volatile and it’s important to always do your own research before providing liquidity.
It’s also important to note that providing liquidity on 1inch is a more advanced way of earning passive income. It is important to understand the concepts of liquidity pools, token pairs and trading pairs before providing liquidity to any exchange.
That’s it! You have successfully provided liquidity on 1inch. Remember that liquidity provision on any decentralized exchange still carries some risks and it’s important to be aware of them, and to always do your own research before providing liquidity.