How to provide liquidity and earn trading fees

Providing liquidity (LP) means users deposit funds in a liquidity pool. In crypto, users deposit 2 assets in a pool. It’s trading pairs. For example, in a SOL-AM pool, users deposit 1 $SOL and 1,000 $AM.

When someone swap or trade $SOL-$AM, or any $AM pool, liquidity providers earn fees.

Liquidity means money, funds, trading volume.

Provider means a person or people put liquidity in a pool

Everyone can deposit, withdraw and earn in the SOL-AM pool on Meteora.

Whether the price goes up or down, you always earn, as long as the protocol Meteora is open.

You receive rewards in $SOL and $AM, not US dollars.

Direct link to AM-SOL pool

https://app.meteora.ag/pools/GUx2bt7tYobhFkCtm5thLk875eRqfysk422XUZccHy6J

Steps to provide liquidity

1. Go to

https://app.meteora.ag

2. Select “Dynamic Pools”

3. In the search box, copy and paste $AM contract address

7aEvqvfmgGbXnd79NFkkGg2Q1nkF1Qzs4iquJUCbCrmC

Click on the AM-SOL

3. Enter deposit amount

You can enter any deposit amount. In the screenshot, I enter 10,000,000 $AM and 0.013 $SOL. Usually, it's 50%-50% of 2 assets.

4. Confirm transaction in your wallet

You successfully deposited liquidity in the AM-SOL pool. Wait for a few hours/days to claim LP rewards. The more people trade, the more you earn.

*Notes

The numbers in the screenshot may change because of market conditions such as high/low price, high/low liquidity and other factors.

*Bonus

When you provide liquidity on Meteora, you may qualify for MET points. There is a 10% stimulus proposal, you can check here.

https://docs.meteora.ag/the-massive-meteora-stimulus-package/3.-the-10-stimulus-proposal