HOW TO ADD LIQUIDITY TO A Solana TOKEN IN RAYDIUM
If you want to start a Token project on Solana or if you already have it and want to know functionalities, the matters related to Liquidity Pool are of greater interest. In this 1-minute read, we'll teach you how to Add Liquidity on Raydium in just a few seconds.
This tutorial is only for adding liquidity to an existing pool, if you want to create a liquidity pool here we explain how to do it.
Pssss.... If you also want to know how to remove liquidity, even immediately after you've added it, we'll show you too!
Before we start with the step-by-step tutorial on how to remove liquidity from Raydium, let's review some key concepts.
WHAT DOES IT MEAN TO ADD LIQUIDITY TO A Solana TOKEN?
In the Solana ecosystem, an LP (Liquidity Pool) is critical to decentralized exchange operations, providing the liquidity needed to transact efficiently and at stable prices.
Adding liquidity to a Solana token in these pools not only benefits the market, offering greater depth and stability, but also allows liquidity providers to earn fees and rewards
Adding liquidity on Raydium is the most common as it is one of the most popular liquidity pool providers on Solana. It involves depositing a pair of tokens into a smart contract to facilitate the exchange between those assets.
HOW TO FIND LIQUIDITY POOL ADDRESS (AMM ID) Solana
When we are about to add liquidity to Raydium or any liquidity pool, we must identify the liquidity pool address. We also refer to this address as "AMM ID", it is the identifier of an Automated Market Maker.
What is the liquidity pool address? It is a unique identifier associated with a specific liquidity pool in a DEX. It functions as an address or reference that allows users and other protocols to interact with that particular pool.
Normally we will be able to get our ID when we create the liquidity pool, as it will be displayed after completing the process. If you did not copy this address follow the steps below:
- Open your wallet address at explorer.Solana.com
- Find the liquidity pool creation transaction and open it by clicking on the "signature". If you created it at Smithii open the "sol transfers" tab and the transaction will be 0.1 SOL to the wallet you see in the image below.
- Scroll down until you reach instruction 5. Here your liquidity pool address will be #5 ("IdoId").
Once you've copied your liquidity pool address, you can go straight to adding the Solana Token's liquidity.
STEP BY STEP ON HOW TO ADD LIQUIDITY TO A Solana TOKEN IN RAYDIUM
Without further ado, let's go step by step on how to add liquidity on Raydium. Once the AMM ID is identified, we are going to use a dApp called "Solana Liquidity Adder" where we will find the following panel:
- Access Solana Liquidity Adder by Smithii Tools (https://tools.smithii.io/add-liquidity/Solana)
- Connect your wallet in order to be able to use the software
- Enter the AMM ID of your liquidity pool
- Enter the number of Base tokens you wish to add.
- Enter the Quote Token amount, usually USDC or SOL.
- Click on Add Liquidity and confirm the transaction (0.1 SOL)
- Wait a few seconds.
The Solana liquidity aggregation tool will take a few seconds, you will be able to add liquidity on Raydium or any other provider, right after you have created the liquidity pool.
Do you want to learn how to create a Liquidity Pool on Solana?
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