Liquidity

How to add liquidity

1

Connect Your Wallet

Visit https://dotswap.app/pools and connect your Bitcoin wallet.

Supported allets: Xverse, OKX, Unisat, Magic Eden, Wizz, Bitget.

2

Select or Create a Trading Pair

You can choose an existing trading pair or create your own by selecting two supported Bitcoin-native assets (e.g., BTC and Runes).

3

Input Liquidity Amounts

Enter the amounts for both tokens.

For new pools, make sure to set a fair and accurate token ratio based on current market prices.

4

Set LP Fee (Income Rate)

If you're creating a new liquidity pool, you'll set the LP fee here. The default is 1.6% for LPs, with an additional 0.4% going to DotSwap (totaling 2%).

This fee structure incentivizes liquidity providers and covers operational costs. Fee ratios are determined by the first liquidity provider and can only be changed with DotSwap's approval.

5

Adjust Settings

Network Fee Rate: Set to Low, Medium, or High based on how quickly you'd like your transaction to confirm.

Slippage: This protects you from large price changes during the liquidity add. For most users, especially for newly created pools, we recommend using the default setting.

6

Click Swap & Confirm

Click Add Liquidity, confirm the transaction details, and sign the PSBT in your wallet.

Once the transaction is confirmed on the Bitcoin network, your liquidity will be active.

Notes

• Adding liquidity gives you LP tokens representing your share of the pool.

• You will start earning LP fees immediately once your funds are active.

• You retain full self-custody throughout the process via PSBT.

• Ensure sufficient BTC is available to cover network fees.

For more advanced features like Nexus LP Pools or CLMM options, please refer to the respective sections in the DotSwap documentation.