How to LP

Swimming in the ocean is hard, but rewarding

A total of 3.4B USD has been accrued as LP fees on Uniswap alone until the moment of writing. This is a testament of how to make your money work for you.

However, we know that this is not so easy for newcomers and we need to democratize this source of income by explaining to everyone.

Simple requirements to provide liquidity

Taraswap is an unmodified Uniswap v3 fork, which means that everything you do on it is done exactly the same way on Uniswap(at least until they release v4).

1. Pick Your Token Pair:

• Choose two tokens you want to provide (e.g., TARA and USDC).

• You’ll need both tokens in your wallet.

2. Choose Your Price Range:

• Decide the price range in which traders can use your liquidity.

• Example: “I’ll provide ETH/USDC liquidity between $1,500 and $2,000 per ETH.”

3. Deposit Funds:

• Add an equal value of both tokens for your chosen price range.

• Example: $1,000 of ETH + $1,000 of USDC.

4. Earn Fees:

• When trades happen within your range, you earn fees proportional to the liquidity you provided.

• Fee tiers vary (e.g., 0.05%, 0.3%, or 1%) depending on the pair.

5. Monitor and Adjust:

• If the price moves out of your range, your liquidity stops earning fees.

• You can adjust your range or withdraw funds.

Let's see how you do this on Taraswap, with images.