Providing Liquidity

Users can provide liquidity with minimal short-term loss while earning transaction fees and incentives. Follow the below steps to become a liquidity provider.

Step 1

Select the token to supply. As an example, let's use weETH with a maturity date of December 27, 2024.

Step 2

Indicate the amount of weETH to provide. The system will automatically calculate the amount of lpFT and lpGT you will receive. The effective APY will also be shown. Once it is correct, click "Submit" to send the order.

lp-XT and lp-FT are ERC20 liquidity provider (LP) tokens investors receive after depositing underlying tokens into TermMax’s AMM pools. Holders of lp-XT and lp-FT are entitled to a share of the transaction fees and incentives generated by the market pools.

LP token holders have several options:

• Redeem lp-XT and lp-FT: Exchange them for XT and FT tokens, respectively.

• Exit Positions: Swap the redeemed XT and FT tokens back into the underlying assets to exit their liquidity positions.

• Strategic Trading:

  • Sell XT Tokens: When the interest rate of the borrowed token decreases, you can profit from market movements.

  • Sell FT Tokens: When the interest rate of the borrowed token increases, you can capitalize on favorable fixed-rate conditions.

Step 3

Sign the transaction to proceed.

Step 4

You can view the order history and positions by clicking "Dashboard" at the top of the page.

Remove Liquidity

If you would like to remove liquidity, simply click the expand arrow symbol. Indicate the amount of lpFT and lpXT to remove. Then, click "Submit" to send the order.