dropletLiquidity

Tapir's liquidity pools enable the DP/YB marketplace to function. You can see available pools on the Markets page, along with each pool's TVL and current LP APY.

Liquidity providers earn returns from:

  • Trading fees generated when users buy DP and YB tokens

  • LP APY displayed on the Markets dashboard


Why Provide Liquidity?

When users buy DP or YB tokens through the Buy tab, they are trading against the AMM pool. Liquidity providers supply the assets that make these trades possible. In exchange, LPs earn fees from every trade.

The current LP APY for each asset is displayed on the Markets dashboard.


How to Provide Liquidity

  1. From the Markets page, click into the asset you want to use.

  2. Navigate to the Liquidity.

  3. Enter the amount of the asset you want to deposit.

  4. Review the details and current LP APY.

  5. Click Add Liquidity and confirm the transaction.

Your LP position is now active and earns a proportional share of trading fees generated by the pool.


Removing Liquidity

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Coming Soon — The detailed flow for withdrawing liquidity is being finalized on testnet. Typically, you would return to the Liquidity tab and withdraw your deposited assets. This section will be updated with step-by-step instructions once available.


Risks

As with any AMM-based liquidity provision:

  • Impermanent loss – If DP and YB token prices diverge significantly, the value of your LP position may differ from simply holding the base asset.

  • Smart contract risk – Contracts are under active development. Production deployments should be reviewed against the latest published audit and release materials.

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