In this article, we’ll be explaining how to add KICK liquidity on the decentralized Uniswap and SushiSwap platforms and why this is something you need.
Why provide liquidity?
As you already know, not all users can be verified and begin trading on KickEX. This is due to the fact that KickEX operates in the legal field of regulators and complies with Estonian laws along with EU and US requirements, which prohibit access to users from sanctioned countries, or restrict US and Canada citizens without appropriate licenses. Iranian citizens, for example, are therefore not allowed on KickEX, which comes as a frustration to many. We understand and we share in your displeasure, but we can’t do anything to help.
Nevertheless, there are decentralized exchanges where you can organize your own trade in any ERC-20 pair: KICK/ETH, KICK/USDT and so on. You don’t need our permission, you don’t need the permission of the exchange — you can create your own environment for trading. As such, if you come from a sanctioned country, don’t come to our chats and demand that we give you access to KickEX. That’s not going to happen, anyway. You will have to collectively organize yourselves and work together to create the tool you want.
Furthermore, every Uniswap or SushiSwap platform user who provides trade liquidity also earns from it. The more liquidity you provide, the higher your income will be from trading that particular pair.
How to add liquidity to KICK trading pairs on Uniswap
To add liquidity, you will need to use a Metamask wallet or a similar wallet supported by Uniswap and SushiSwap. Fill it with KICK and ETH tokens, and then follow some simple instructions.
1. Select a trading pair. In our case, this will be the KICK/ETH pair. To add your own liquidity to this pair, follow this link.
2. Next, you will need to select the fee tier. Each trading pair offers three types of fees.
● 0.05% fee: best for stable pairs. A fee tier of 0.05% is ideal for token pairs that are typically traded at a fixed or highly correlated rate, such as Stablecoin-stablecoin token pairs (e.g., DAI-USDC). LPs (Liquid Pool) take minimal price risk in these pools, and traders expect minimal fees.
● 0.3% fee tier: best for most pairs. A fee tier of 0.3% is best for less correlated token pairs, such as the ETH-KICK token pair, which are subject to significant price swings both upward and downward. This higher commission is more likely to compensate LPs for the greater price risk they incur compared to stablecoin LPs.
● 1.0% fee tier: best suited for exotic pairs. A fee tier of 1.0% is suggested for exotic assets where LPs take extreme price risk (e.g., ETH-GTC). Relevant assets are those that are particularly susceptible to monotonic price fluctuations.
3. Set price range
When deciding on a price range, you must consider the extent by which you expect prices to move over the term of your position. You must also consider your willingness to actively manage your position as the market develops and consider the transaction economics required to actively manage your position.
If the price moves out of the specified range, your position will be concentrated in one of the two assets and will not receive a trading commission until the price returns within its range.
4. Select deposit amount. Enter a value in one of the “Deposit Amounts” fields, and the corresponding amount will be automatically substituted in the other field. The ratio of these two fields is based on the position of your price range relative to the market price. You can adjust the ratio by moving the price range left and right on the chart or by dragging the minimum or maximum price boundary. The deposit amount you input will remain fixed, while the second asset amount will be adjusted according to the new ratio based on your new price range.
5. Accept conditions and add liquidity to the pool. Configuration is complete. All you have to do now is submit the transaction. You may need to validate the Uniswap v3 router contract in order for tokens to be spent on your behalf. This is required only the first time you provide liquidity with a token. Once the transaction has been approved, you can click Preview, view the transaction details, and then click Add to start the transaction on your wallet.
Done! You have added liquidity to the ETH-KICK pair and will be receiving commission payments.
How to add liquidity on SushiSwap
1. To add liquidity, click here and select the Add Liquidity function.
2. If this is your first time using SushiSwap, you will see a window asking you to select a trading pair. In our case, it’s the KICK token and the ETN token, and specify the amount of tokens you want to add.
3. Then click Add, which appears after your wallet has been connected, and complete the transaction.
Liquidity successfully added!