Liquidity Pools
Learn how liquidity pools work on Doma. Provide liquidity to domain token pairs, earn a share of swap fees, and use Uniswap V3's concentrated liquidity to control your active price range.
Liquidity pools let you put your capital to work on Doma. Instead of just holding tokens, you can provide liquidity and earn a share of the trading activity that happens around a domain token pair.
What Are Liquidity Pools on Doma?
Navigate to Explore, then Pools, to find all available liquidity pools. Each pool is based on a domain token pair, usually paired with USDCe or Ethereum.
Here's how it works:
- You deposit two tokens into a pool
- Traders swap against that liquidity
- As a liquidity provider, you earn a share of the swap fees
Returns vary depending on trading volume, price movement, and overall market activity. Instead of your capital sitting idle, it can work while the market trades.
Concentrated Liquidity
Doma's liquidity pools are powered by Uniswap V3, which introduces concentrated liquidity. Rather than simply providing liquidity across the board, you choose the exact price range where your liquidity is active, giving you more control over your capital.
How to Add Liquidity
Step 1: Go to Pools
Navigate to Explore, then Pools, and select the pool you're interested in. This opens the pool page, where you'll see detailed stats and a price chart.
Step 2: Add Liquidity
Click Add Liquidity in the top right.
Step 3: Select Your Token Pair
Choose your token pair, making sure you hold both tokens. You'll need to approve both tokens so they can be deposited.
Step 4: Create Your Position
Click Continue and confirm the transaction in your wallet. Once confirmed, your liquidity position is live.
Managing Your Positions
Under your portfolio, you can view all your active positions. From there, you can:
- Add more liquidity to a position
- Adjust your range
- Remove liquidity
- Claim earned fees
Click into any position to see its current price range, earned fees, and overall performance.
To collect your earnings, click Claim Fees and they'll be credited directly to your wallet.
What's Next
Now that you know how to provide liquidity, take a look at how to manage your active positions in more detail.