Depositing Liquidity
How to provide liquidity into a strategy
Last updated
How to provide liquidity into a strategy
Last updated
If you haven't already, download a trusted web3 wallet like Metamask, Trustwallet, or Corewallet and ensure that you have enough blockchain tokens to cover gas fees.
Head over to the SteakHut website and launch our dApp.
Connect your wallet to the dApp by navigating to the top right corner and selecting connect. Ensure you are connected to the desired blockchain.
The liquidity tab allows you to view a range of liquidity strategies available for you to deposit. From here you can browse through strategies and select your desired token pair.
Firstly, double check you have selected your desired blockchain, in this example we have selected Avalanche. You can easily change this by selecting any of the supported chains from the drop-down menu in the top right of the screen.
Next, you can select the CLMM (DEX) you wish to use, in this example, we are using Uniswap V3. By scrolling down we can view all the available strategies, or you can simply search for your desired token pair.
After finding your chosen pair, select "Deposit" to open the vault.
After opening your desired vault you will see the transaction card which allows you to deposit or withdraw liquidity.
The transaction card is available under the "Overview" tab.
The transaction card is full of useful features to help make depositing easy. In this example, we are depositing into the AVAX-USDC vault.
Toggling "single" or "pair" will allow you to deposit a single token or a token pair into the strategy depending on your preference.
SteakHut's single deposit feature allows you to easily deposit into a strategy with only one token of the token pair. Using a single deposit we can select which token we would like to deposit, in this case, we have selected WAVAX.
By depositing a single token, this token is "Zapped" into the desired token pair. This is routed through the underlying pool, thus be aware that swap fees and slippage may be applied.
We can also choose to deposit the actual underlying token pair by toggling "Pair". It is important to note that concentrated liquidity rarely maintains a 50:50 ratio of tokens as is standard in traditional AMM designs. For this reason, when depositing you may note that differing amounts of each tokens are necessary. The SteakHut dApp will automatically calculate how much of each token is needed to maintain the ratio for a deposit. In this example, we have deposited 0.013 AVAX and the dApp has calculated that 1.26643 USDC is needed to complete the ratio.
When you are ready to continue press to approve the tokens. Note when depositing a pair you will have to approve both tokens for interacting with the contract.
After selecting approve you will be asked by your wallet to confirm the approval.
After approval, you will finally be prompted to deposit and approve within your wallet.
Note if you are using the Metamask wallet you may be prompted to enter a spending cap when approving contracts for interaction. This is a security feature to help avoid wallet exploits. Generally, it is recommended that you only approve the amount you wish to deposit. When depositing in the future you may have to reset your limits to deposit further amounts.
After depositing you can refresh the page to view your deposits, in this example, we can see we have $20 of liquidity deposited into the strategy.
Notice we have a range of tabs that help us view a range of important information about the strategy.
Overview: The overview tab is the strategy homepage, view a summary of important information and deposit or withdraw from the strategy,
Analytics: Analytics is a data dump of important information. View a tonne of information collected in real time to help track the performance or underlying metrics of the strategy.
Ranges: Ranges allow you to see the list of liquidity ranges set for this strategy, as well as what percentage of liquidity is deployed and the fee tiers of each range. Managers can also manage liquidity ranges here.
Settings: The settings allow you to see the full list of configurations set by the vault creator, such as fee breakdowns, the manager's address, and vault privacy settings. Managers can also edit settings here.
