Increasing Liquidity On Elastic
Add To Your Favourite Concentrated Liquidity Positions
Introduction
If you already have a KyberSwap Elastic liquidity pool position that’s doing well, you may want to increase the size of that position. This is called Increasing Liquidity.
Note: “Increasing Liquidity” should not be confused with “Adding Liquidity.” Adding Liquidity means creating a new position, whereas Increasing Liquidity pertains to increasing the size of a position you currently hold. Please refer to Add Liquidity To An Existing Elastic Pool if you would like to enter a new position.
Liquidity Provider Flow
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Increasing Liquidity On Elastic <-
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Increasing the liquidity of an existing position
Step 1: Select position
From the My Positions page, look for the position you’d like to increase and click its corresponding “Increase Liquidity” button.
This opens the “Increase Liquidity” screen.
Step 2: Configure additional liquidity amounts
Specify the deposit amounts, or the magnitude of the position size increase. You can either manually type in amounts or use the “Max” and “Half” buttons. Once you specify the deposit amount for one leg of the pair, the corresponding leg’s amount will be automatically calculated and populated for you.
Note: The proportion of liquidity deposited for each leg of the pair is determined by the price range associated with the position.
Fee-on-transfer tokens
Certain ERC20 token smart contracts implement a fee-on-transfer (FOT) mechanism whereby for every token transfer, a percentage of the tokens are burned or distributed to various wallets.
To ensure the safety of our user's funds as well as avoid any unexpected outcomes, KyberSwap Elastic does not support FOT tokens. All KyberSwap Elastic transactions involving any FOT token will be failed as a safety precaution.
Note that the FOT tax is specified in the FOT token's smart contract (i.e. the FOT token team) hence KyberSwap does not have any control over the FOT mechanism. Users are advised to trade such tokens at their own risk as KyberSwap was optimized to handle the standard ERC20 implementation.
Step 3: Authorize contract
If you haven’t already done so, you will need to need to authorize the KyberSwap smart contract to transact using your tokens on this network. Click the “Approve [Token]” button to do so. This will open the approval dialog window on your wallet.
Once the approval is confirmed, the previously-greyed-out “Preview” button will be clickable.
Step 4: Review increase liquidity
Click on the “Preview” button to bring up the preview screen.
Slippage: Protecting your liquidity
As an AMM protocol, any additions of liquidity to the pool might result in slippage whereby the final amount deposited differs from the expected amount. To minimize the effects of slippage, KyberSwap Elastic enables you to configure a slippage tolerance that caps the amount of slippage above which your transaction will be reverted (i.e. failed and cancelled).
Please refer to AMM Slippage for further details on why slippage occurs and how to protect your liquidity additions or removals.
Once you have reviewed the information on this screen, click on the “Supply” button to proceed.
You will need to confirm this transaction in your wallet.
Once you’ve confirmed the transaction you will see a screen informing you that the transaction has been submitted. You can click on “View Transaction” to view your transaction on the appropriate blockchain explorer.
The newly increased position should now be visible on the My Positions page.
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