✨ Welcome Crypto Explorers ✨
In this tutorial, we will be learning how to be a liquidity provider (LP) on Uniswap (Optimism Network).
We'll be covering how to add Optimism to your wallet, deposit funds onto the Optimism network, and how to provide liquidity on Uniswap.
Let's get started!
Uniswap is an Ethereum-based decentralized exchange (DEX) that allows anyone to swap ERC20 tokens without order books.
The Uniswap protocol provides incentives for people to become liquidity providers (LP): users who pool their money together to create a liquidity pool / fund that is used to execute all trades that occur on the platform. A buyer or seller in this system doesn't have to wait for another party to appear to complete a trade, and the trade can be executed instantly at a known price if there is enough liquidity in the particular pool to facilitate it.
Optimism is a Layer 2 scaling solution built on top of Ethereum to reduce transaction costs.
It allows Uniswap to make transactions nearly instant and gas fees extremely cheap.
Note: There is a seven-day withdrawal period when bridging tokens from Optimism back to Ethereum L1, meaning that funds will be completely inaccessible during this period.
If you want to learn more about the details of the Uniswap Optimism alpha launch and Optimism:
In this tutorial, we'll be walkthrough how to become liquidity providers (LP) on Uniswap on the Optimism network.
1. Go to Uniswap.org and click on Launch App in the top right
2. Make sure your Metamask is currently connected to the Optimism network.
3. Navigate to the [Uniswap Pool(https://app.uniswap.org/#/pool) option at the top.
4. Click on '+ New Position' to add liquidity to a liquidity pool.
5. Navigate to Select Pair
6. Review Fee Tier
7. Set Price Range
8. Deposit Amounts
9. Approve and Add
Congratulations! Once the transaction has submitted, your assets are now successfully providing liquidity to Uniswap traders.
Keep On Questing and Leveling Up Your Skills!
🧙♂️ Tutorial created by: @TheAlexYao