> For the complete documentation index, see [llms.txt](https://deriverse.gitbook.io/deriverse-v1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://deriverse.gitbook.io/deriverse-v1/liquidity-management.md).

# Liquidity Management

The **Liquidity** tab lets you act as a liquidity provider by buying and selling **LP (Liquidity Provider) tokens**. Providing liquidity helps facilitate trading on the platform while allowing you to earn a share of the transaction fees.

### 1. Interface overview

The Liquidity page is organized into two primary sections.

#### Pools

Displays all available trading pairs (instruments) on the platform.

| Column                   | Meaning                                                                                        |
| ------------------------ | ---------------------------------------------------------------------------------------------- |
| **Instrument**           | The trading pair name (for example, SOL/USDC).                                                 |
| **24h Fees (%)**         | Fees collected by the pool over the last 24 hours. The percentage shown is the 24-hour change. |
| **Liquidity (USDC)**     | The total value currently held in that specific pool.                                          |
| **LP Evaluation (USDC)** | A real-time valuation of your current share in the pool, if applicable.                        |

#### Open Positions

Filters the list to show only the pools where you currently hold LP tokens. If you have no active positions, this tab displays *"No open positions"*.

**Total Liquidity (USDC)**, at the top of the page, shows the aggregate liquidity across all pools on Deriverse.

#### Search and navigation

* **Search** - use the search bar in the upper right to find a pool by its token symbol (for example, "SOL") or its specific Mint Address.
* **Pagination** - use the **Next** and **Previous** buttons at the bottom of the table to navigate through multiple pages of pools.

### 2. How to add liquidity (buy LP tokens)

{% hint style="warning" %}
**You need both tokens before you start.** Unlike a simple trade, purchasing LP tokens requires you to contribute the base asset (for example, SOL or cbBTC) **and** the quote currency (USDC) at the same time. Make sure both are funded in your account - if either side is short, the purchase cannot complete.
{% endhint %}

1. Navigate to the **Pools** tab.
2. Find your desired instrument and click **Buy** in the Action column.
3. In the **Buy LP Token** modal, enter the amount of LP tokens you wish to purchase.
4. Review the **You will spend** section - the system automatically calculates the required tokens (for example, SOL and USDC) that will be deducted from your wallet.
5. Click **Buy LP Token** and approve the signature request in your connected wallet (Phantom or Solflare).

Once confirmed onchain, your new position appears in the **Open Positions** tab and the pool's metrics update in real time.

### 3. How to remove liquidity (sell LP tokens)

Selling LP tokens allows you to withdraw your assets and any earned fees back to your wallet.

1. Go to the **Open Positions** tab.
2. Click **Sell** for the corresponding pool.
3. Select the amount to sell - use the **25% / 50% / 75% / MAX** shortcut buttons for quick selection, or enter the amount manually.
4. Review the **You will receive** section to see the estimated SOL and USDC that will be returned to your wallet.
5. Click **Sell LP Token** and sign the transaction in your wallet.

### 4. Evaluation and real-time updates

Your position's value fluctuates based on market prices and accumulated fees.

* **Valuation formula:**

```
LP Evaluation = (Your Position / Total Pool Token Supply) × Total Pool Liquidity
```

* **Live data** - Total Liquidity and individual pool values update automatically as other users perform buy or sell operations.

{% hint style="warning" %}
**Stablecoin pairs have no AMM.** Stablecoin-only pairs (for example, USDT/USDC) **do not have an AMM pool**. Trading for these instruments runs exclusively through the Orderbook, so buying LP tokens, providing liquidity, and earning pool yield are not available for these pairs.
{% endhint %}