How to Provide Liquidity

Prerequisites

Before providing liquidity, ensure you have:

A NEAR-compatible wallet connected (23 wallet options available)
Both tokens of the pair you want to provide (e.g., NEAR and USDC)
Small amount of NEAR for gas fees (~0.1 NEAR)
Understanding of concentrated liquidity and impermanent loss risks

Become a Liquidity Provider

Earn trading fees by providing liquidity to Vita pools. With concentrated liquidity, you can earn significantly higher fees compared to traditional AMMs.

New to DeFi? Providing liquidity means depositing tokens into a pool where traders can swap. You earn a portion of the trading fees (default 0.3% on all trades).

The 3-Step Process

Select your token pair

Choose from existing pools or create a new one

Set your price range

Narrow ranges earn more fees but require more management

Deposit tokens and mint NFT

Your position becomes an NFT you can manage, boost, or farm

Step 1: Select Your Token Pair

Browse Available Pools

Navigate to the Liquidity page to see all available pools

Navigate to the Liquidity page to see all available pools with key metrics like TVL, volume, and your deposited positions.

Choosing the Right Pair

Popular Pairs
Stable Pairs
Your Holdings

NEAR / USDC

High volume pair

VITA / NEAR

Native protocol pair

Understanding Your Options

What makes a good pair?

Consider these factors:

Trading Volume: Higher volume = more fees
Volatility: Stable pairs = less impermanent loss
Your Holdings: Use tokens you already own
Correlation: Similarly moving tokens work well together

New pool creation

Can’t find your desired pair? Create a new pool:

Set initial price
Default 0.3% fee applies
Be the first LP!

Step 2: Set Your Price Range

Pool Detail View

The pool detail page shows current price and liquidity distribution

The pool detail page shows current price, liquidity distribution, and preset range options to help you choose.

Understanding Fee Distribution

All pools charge a default 0.3% trading fee on every swap. The fees are distributed through protocol_fee_rate and community_fee_rate configurations. Fee distribution:

Liquidity providers earn the majority of fees
Protocol and community vaults receive configured portions
xVITA stakers benefit from protocol revenue

Setting Your Price Range

Preset Ranges
Custom Range

Full Range

MIN_TICK (-665454) to MAX_TICK (831818)
Efficiency: ~1x
Never goes out of range

Wide Range

±50% from current price
Efficiency: Higher
Good for beginners

Narrow Range

±10% from current price (RECOMMENDED)
Efficiency: Much higher
Higher returns

Step 3: Deposit Tokens

Calculate Your Deposit

The interface automatically calculates the optimal ratio

The ratio of tokens you need to deposit depends on:

Current price
Your selected range
Which token is worth more

The interface automatically calculates the optimal ratio.

Final Confirmation

Review Details

Double-check:

Token amounts
Price range (tick_lower and tick_upper)
Default 0.3% fee
Minimum amounts (amount0_min, amount1_min)

Approve Tokens

First-time only: Approve the contract to use your tokens

Mint Position

Confirm the transaction to mint your position NFT

Receive NFT

Your position is now an NFT in your wallet!

Managing Your Position

Once created, you can manage your position through the detailed interface:

Complete position management interface

Available Actions

Increase Liquidity

Add more tokens to earn more fees

Decrease Liquidity

Remove some or all tokens

Collect Fees

Claim earned trading fees anytime

Start Farming

Stake your NFT for bonus rewards with boost mechanics

Boost Your Position

Apply xVITA boost to maximize your farming rewards

Apply xVITA boost to maximize your farming rewards (up to 2.5x multiplier).

Monitor Rewards

Track your accumulated rewards in real-time

Track your accumulated xVITA and VITA rewards, updated every 10 minutes.

Common Strategies

Wide Range (Beginners)

Best for: New LPs, volatile markets

Set range ±20-50% from current price
Lower returns but safer
Requires less monitoring
Good for learning

Example: NEAR at $5

Min: $2.50 (-50%)
Max: $7.50 (+50%)

Narrow Range (Advanced)

Best for: Stable pairs, active management

Set range ±1-10% from current price
Higher returns but riskier
Requires frequent adjustments
Maximum fee generation

Example: USDC/USDT at 1.00

Min: 0.995 (-0.5%)
Max: 1.005 (+0.5%)

Range Orders (Pro)

Best for: Taking profits, buying dipsUse single-sided liquidity as limit orders:

Above market: 100% token A (sell order)
Below market: 100% token B (buy order)

Example: Sell NEAR at $6

Min: $6.00
Max: $6.10
Deposit: 100% NEAR

Risk Management

Impermanent Loss
Gas Optimization
Position Sizing

Understanding IL RiskConcentrated positions can experience higher IL:

Scenario	Impact
Price stays in range	Normal IL + High fees
Price exits range temporarily	Some IL + No fees
Price exits range permanently	Max IL + No fees

Never provide more liquidity than you’re comfortable potentially losing. Start small and learn the mechanics before scaling up.

Recommended allocation:

Experience	Portfolio %
Beginners	5-10%
Intermediate	10-25%
Advanced	Up to 50% with active management

Code Examples

The following code examples are for illustration purposes. Always verify contract addresses and test thoroughly before using in production.

// Direct contract interaction (no SDK available)
const { connect, Contract, keyStores } = require("near-api-js");

// Mint a new position
const contract = new Contract(
  account,
  "[TBD]", // Contract address TBD
  {
    changeMethods: ["mint_position"],
  }
);

// Note: VITA uses 18 decimals, not 24
await contract.mint_position({
  pool_id: "NEAR-USDC",
  tick_lower_index: -69300, // Example tick
  tick_upper_index: -46050, // Example tick
  amount0_desired: "1000000000000000000000000", // 1 NEAR (24 decimals)
  amount1_desired: "5000000", // 5 USDC (6 decimals)
  amount0_min: "990000000000000000000000", // 0.99 NEAR (1% slippage)
  amount1_min: "4950000" // 4.95 USDC (1% slippage)
});

Trading

Liquidity & Staking

How to Provide Liquidity

Prerequisites

Become a Liquidity Provider

The 3-Step Process