Bybit Liquidity Mining: A Guide to Adding and Removing Liquidity
Here's a step-by-step guide that helps you go through the whole process — adding liquidity, removing liquidity and swapping your tokens — to make your first liquidity mining trade easier.
Please click on Earn –> Liquidity Mining in the navigation bar to enter the Liquidity Mining page.
Step 1: Select a liquidity pool
Browse the available pools under All Pools and choose the one to which you want to add liquidity. Click on Add to enter the Add Liquidity page.
Step 2: Place your liquidity order with the following parameters:
1. Select a liquidity pool
2. (a) Add two tokens to the pool — the system will automatically process conversion to ensure that the two tokens are of equal value when they're added to the liquidity pool, or
(b) Add a single token to the pool — the system will automatically convert half of its value to another token in the pool.
3. Enter your desired amount
4. Choose your prefered leverage
— Your principal may be subject to impermanent loss, and the value may fluctuate based on market movements.
— A leverage of 1x indicates that no leverage has been added. Please note that liquidation risks may be incurred if you select a leverage that's higher than 1x.
Step 3: Please double-check the order details you’ve created, and then click on Add Liquidity.
Step 4: Click on Confirm and you’re done.
Please note that your order to add liquidity will be completed within five minutes. If the newly added liquidity is still pending, the liquidity of the corresponding trading pair cannot be removed.
You can click on Back to Homepage to add more liquidity. To check your liquidity, head to the My Liquidity page by clicking View My Liquidity.
From there, you can easily manage your positions — choose to add more liquidity, remove liquidity, swap your tokens, claim and reinvest your yield, or reduce leverage.
Step 1: Head to the My Liquidity page, and then click on More –> Remove to enter the Remove Liquidity page.
Step 2: Select the liquidity pool from which you wish to remove tokens, and check the quantity of the two tokens that you’ll receive. Please note that the actual number of tokens you receive may vary slightly due to price fluctuations.
Step 3: Please double-check the details, and then click on Remove Liquidity.
Step 4: Click on Confirm and you’re done.
Your order to remove liquidity will be completed within five minutes. Please note that the actual number of tokens you receive may vary slightly due to price fluctuations.
Swap Your Tokens
Step 1: Click on Swap in the Liquidity Mining page, select the token you want to swap, and enter your desired number of tokens.
Step 2: Please double-check the details, and then click on Swap.
Your swap order will be completed within seconds. Please note that the actual number of tokens you receive may vary slightly due to price fluctuations.
Bybit Liquidity Mining Fees
Bybit won't charge any fees when you add or remove liquidity. However, if the liquidity you’ve added exceeds a certain threshold, you may experience slippage.
Bybit will charge a 0.3% swap fee for swapping two tokens. The swap fees earned from these transactions will be distributed to liquidity providers. Please note that if the liquidity you’ve swapped exceeds a certain threshold, you may experience slippage.
Is Liquidity Mining a guaranteed investment?
Bybit's Liquidity Mining is not a risk-free product. Liquidity provision is subject to impermanent loss, and the yield amount isn’t guaranteed. For more information, visit here.
There is no liquidation risk if you do not add leverage. However, you may have liquidation risks if leverage has been applied.
Please note that all principal investment can be lost if the positions are liquidated. You may add USDT to reduce your leverage and to minimize liquidation risks.
To learn more about how to reduce leverage, please refer to Liquidation Price (Liquidity Mining).
The Bottom Line
Bybit's Liquidity Mining implements the x × y = k rule* to ensure that the product of the quantities of your added tokens remains fixed over time. Liquidity pools, however, may be subject to impermanent loss.
*In the formula x × y = k, x and y represent the quantity of each token in the liquidity pool, and k is a predefined constant.