Adding and Farming Liquidity Pool

Note that this is only available post-token launch.

Since $JUTSU is a CW404 token, you may become a liquidity provider via DojoSwap. Providing liquidity earns you a portion of trading fees when people use your liquidity pool. When a user trades on DojoSwap, the trader pays a 0.3% fee of which 0.15% is added to the Liquidity Pool of the swap pair they trade on.

For example:

• There are 10 LP tokens representing 10 $DOJO and 10 $JUTSU

• 1 LP token = 1 $DOJO and 1 $JUTSU

• Someone trades 10 $DOJO for 10 $JUTSU

• Someone else trades 10 $JUTSU for 10 $DOJO

• The $JUTSU/$DOJO liquidity pool now has 10.015 $JUTSU and 10.015 $DOJO

• Each LP token is now worth 1.00015 $DOJO + 1.00015 $JUTSU

You may also put your LP tokens in a DojoSwap Farm while still earning your 0.15% trading fee reward. Note that LPs are exposed to the risk of impermanent loss.