How to Add Liquidity on Unichain with Enkrypt
Looking to add liquidity to Unichain and start earning? Follow our guide for help adding liquidity to Unichain on Enkrypt!
Uniswap is a decentralized cryptocurrency exchange that allows users to trade digital assets directly from their wallets rather than depending on a central authority. Uniswap is built on the Ethereum blockchain and employs smart contracts to enable automated, peer-to-peer token trading. It has a unique liquidity pool structure that allows users to contribute assets and earn a portion of the transaction fees, which improves market efficiency and accessibility. This method democratizes trading by assuring consistent liquidity and lowering entry barriers, resulting in smoother and more secure transactions for all users.
Enkrypt is a multichain, non-custodial, and open-source web3 browser wallet built by the team behind MEW (MyEtherWallet). With Enkrypt, users and developers can generate accounts, manage tokens and NFTs, and interact with DApps on Ethereum, Solana, as well as Bitcoin, Substrate and any EVM chains. Follow the instructions in this guide on how to supply liquidity on Unichain with Enkrypt!
Uniswap allows users to help decentralize trades by creating liquidity pools or adding liquidity to existing liquidity pools. Users can earn rewards when others trade and the liquidity pool that they have deposited into is used. The liquidity providers will earn a portion of the transaction fees.
In order to supply liquidity, you will need at least two different tokens because you provide liquidity into the pool in pairs.
Connecting Your Wallet
First, head to the Uniswap website.
Disclaimer: Keep in mind Uniswap is a third-party DApp and is not affiliated with MEW in any way. Using DeFi involves some inherent risk. Please do your research and proceed at your own discretion.
If you are not on the ‘Pool’ page, you will need to click ‘Pool’ in the navigation menu.
Click ‘Connect’ at the top right of the page.
Click the ‘Enkrypt’ option.
On the Enkrypt pop up, select the account you want to connect with then click ‘Connect’.
Click the network dropdown then select the network you want to add liquidity on. We will choose Unichain for this example.
Unichain is a Layer 2 (L2) blockchain that allows for faster and cheaper decentralized finance (DeFi) transactions. It was created by Uniswap Labs to address the cost and speed challenges of other blockchains.
Select the pool you want to add liquidity to. We will choose ETH/UNI (Unichain ETH and Uniswap token) for this example. You will need two different tokens on the Unichain network, including ETH to pay for network fees. ETH on the Ethereum network or another network cannot be used to pay for the network fees.
Click ‘Add liquidity’.
It should show the tokens you are about to add. You can click the fee tier dropdown to select the tier you want to supply your tokens to. Select ‘Continue’ to proceed with supplying your tokens.
You can choose to supply your tokens for the full range or a custom range. If you choose the full range your tokens will be spread out to be swapped from 0 to infinite price range. If you specify a custom range it will supply your tokens to be a concentrated range that you specify.
We will leave it on the default custom range. Click ‘Continue’ to proceed.
Enter the amount you want to supply and click ‘Review’.
Click ‘Create’ to add your tokens to the liquidity pool.
On the Enkrypt pop up, sign the message by clicking ‘Sign’.
Then confirm the transaction by clicking ‘Send’.
You will be shown your positions after your transaction is confirmed. You can click your position to view and manage it.
Here you can add more liquidity, remove your liquidity or claim your fees.
Once users have used your liquidity pool to complete their trades you will receive a portion of the fees.
You can collect the fees by clicking the ‘Collect fees’ button above the fee breakdown.
Thank you for checking out our guide on How to supply liquidity on Unichain using Uniswap with Enkrypt! Don't forget to download Enkrypt for a seamless web3 multichain wallet experience. We would love to hear from you on our social media about any guide suggestions you have for the future. Also, if you enjoy using mobile cryptocurrency wallets, give our MEW Mobile app a try, it's available on both iOS and Android platforms!