Liquidity Guide
Learn how to provide liquidity on DI Network, earn trading fees, participate in liquidity mining, and manage your liquidity provider positions effectively.
Liquidity Overview
DI Network offers multiple liquidity provision opportunities:
DEX Liquidity: Provide liquidity to DI/ETH, DI/USDC pairs
Stability Pool: DUSD liquidity for liquidation absorption
Cross-Chain Liquidity: Bridge liquidity across networks
Synthetic Asset Pools: Liquidity for synthetic asset trading
Getting Started
Prerequisites
Supported wallet (MetaMask, WalletConnect, etc.)
Tokens for liquidity pairs (DI, ETH, USDC, DUSD)
Understanding of impermanent loss
Basic knowledge of AMM mechanics
Choosing Your Strategy
Stable Pairs
Low
5-15% APY
Low
DI Pairs
Medium
15-40% APY
Medium
Exotic Pairs
High
30-80% APY
High
Stability Pool
Low-Medium
8-26% APY
Low
Liquidity Provision Types
AMM Liquidity Pools
Traditional 50/50 Pools:
Equal value of two tokens
Earn trading fees (0.3%)
Subject to impermanent loss
Liquidity mining rewards available
Supported Pairs:
DI/ETH (Primary pair, highest rewards)
DI/USDC (Stable exposure)
DI/DUSD (Protocol synergy)
DUSD/USDC (Stable pair, low IL)
Stability Pool (DUSD)
Mechanism: Single-asset liquidity provision
Deposit only DUSD
No impermanent loss
Earn liquidation bonuses
Support protocol stability
Liquidity Mining Program
Reward Structure
APY Calculation
Risk Management
Impermanent Loss
Occurs when token prices diverge:
Risk Mitigation
Choose correlated pairs (DUSD/USDC)
Use hedging strategies
Focus on high-reward pools
Monitor positions regularly
Performance Tracking
Key Metrics
Best Practices
Getting Started
Start with stable pairs to learn
Begin with small amounts
Understand IL before large commitments
Monitor positions regularly
Risk Management
Never provide more than 20% of portfolio
Diversify across multiple pools
Keep emergency funds liquid
Set IL tolerance limits
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