Double-Sided LPing

Video Tutorial:

Step by Step: Dual-Sided Deposits

1. Connect your wallet

• Visit the SparkDEX pool page and connect your wallet.

2. Choose the deposit mode:

• Select Dual Deposit.

• You’ll see fields for two tokens: Token A and Token B, in this case WFLR and USDT0.

3. Select tokens & amounts

• Choose Token A and Token B from the dropdowns (for example Token A = WFLR, Token B = USDT0).

• Enter the amount for one token (say Token A); the system should auto-calculate the corresponding amount for Token B based on the pool’s ratio.

• Verify both amounts look correct.

4. Select the Strategy and Fee Tier

• Choose between an Automatic or a Manual Strategy to open a dual-sided LP

• If you're choosing 'Automatic' as your strategy, the fee tier and range will automatically be selected for you by one of the Automated Liquidity Managers (Steer or ICHI), this means you don't need to manage the liquidity yourself and it is optimized by an ALM.

• However, if you choose the 'Manual' strategy, this requires your personal interactions depending on your level of risk and Impermanent Loss.

About IL (Impermanent Loss)

As an Example, let's say you deposit:

• 1 FXRP that is currently at $1.00

• 1 USDT0 that is currently at $1.00 Total value = $2.

Now suppose FXRP’s price doubles to $2.00 while USDT0 stays $1.00.

The AMM rebalances your position, selling some FXRP to keep the 50/50 pool ratio. If you withdraw at that point, your total value might be worth less than if you had just held FXRP + USDT0 outside the pool — even though you earned trading fees.

That difference is impermanent loss.

• So, with a manual strategy you can manually choose a price range for your liquidity.

• You earn higher fees if trading happens inside that range.

• But you’re more exposed to impermanent loss if the price leaves your range.

5. Approve tokens

• If either token has not been approved yet, hit “Approve” for Token A and/or Token B.

6. Deposit both tokens

• Then, click 'Add Liquidity' to submit the transaction.

• Confirm in your wallet.

7. Track your position

• Once done, you’ll see your position reflected under “Your Pools.

• You now hold a dual-token liquidity position.

• Keep track of your earned fees.

• You can always add or withdraw your liquidity easily by clicking on 'Manage' next to your position and by selecting 'Add' / 'Withdraw' to modify the liquidity added.

8. Manage your position

• After clicking on the 'Manage' button next to your position you will see a UI allowing you to edit your position by adding or withdrawing liquidity and claiming any unclaimed fees. You will also have an overview of your pool share percentage.