ZAP to provide liquidity
Last updated
Last updated
Before we dive into the mechanism that runs ZAP, let's briefly look back at what liquidity pools are: .
So, how does ZAP benefit the user, and how does it remove one of the barriers we usually stumble upon when exploring DeFi?
Imagine you would like to add liquidity to a specific liquidity pool. This usually requires you to have at least two different tokens (needed for the liquidity pool) in your wallet. If you have only one of them, you would usually have to sell part of it for the other token before pairing them up and depositing into a liquidity pool. With ZAP, you need only one token.
ZAP does most of the work for you: it swaps half of the amount of the tokens (you selected to create the LP) for the other tokens needed for the LP, pairs them up and deposits into the pool you previously selected, then returns the LP tokens to your address. In one transaction.
1.Head to the Liquidity section and select "ZAP". Next, select the token you would like to use to create the LP.
2. Now select the amount of the tokens you would like to use to create an LP and press the "Zap" button.
3. Press "Confirm Your Zap". You will be prompted to sign a transaction in your wallet. Confirm the transaction and let the code do the rest.
4. Your LP token has been created. Head to the "Liquidity" tab to see your LP position.
As simple as that, ZAP does all the work for you. It swaps half of your existing tokens for the other, deposits them into a liquidity pool, and then returns the LP tokens to your wallet. And all that in just one transaction! You are now ready to farm with your LP tokens.
