Liquidity

Swapping tokens typically refers to exchanging one cryptocurrency or token for another on a blockchain-based decentralized exchange (DEX). One of the most popular DEXs is Physica, which operates on the Planq. Here's a step-by-step tutorial on how to swap tokens using Physica as an example:

Note: This tutorial assumes that you already have a cryptocurrency wallet (e.g., MetaMask) set up and funded with the tokens you want to swap.

1. Access Physica:

   • Go to the Physica Liquidity

2. Select the "pools page"

3. Connect Your Wallet:

• In the top right corner, you will see a "Connect to a Wallet" button. Click it.

• A list of supported wallets will appear. Select your wallet, and follow the prompts to connect it.

E.g Wallet MetaMask

4. Select New Position

5. Select the token drop down

Note: When adding liquidity, you can select any pair of ERC-20 tokens

Token pair

• Once your wallet is connected, you'll see options to select the tokens you want to add liquidity pools. In Physica, you can add liquidity any token.

• For this example, let's say you want to add liquidity for pair PLQ and DELTA. Select PLQ in the "From" dropdown and DELTA in the "To" dropdown.

• After selecting the first token, now select the second token. Select the token drop-down.

6. Slippage Tolerance:

• You can set a slippage tolerance, which is the maximum percentage difference you're willing to accept between the expected and actual trade. Each pair of tokens offers 4 fee tiers: 0.05%, 0.3%, 1%.

7. Set the Price Range in which to provide liquidity.

You can enter a specific range, or provide liquidity for the full price range.

If the price moves out of your set range, then your liquidity position will be concentrated into one of the two assets and not earn fees.

Enter the amount of tokens you want to deposit into the liquidity pool, or select “Max” for the maximum amount of tokens.

Review & Confirm:

• Review the transaction details, including gas fees, before confirming.

• Click "Add liquidity" when you're ready.

9. Select “Approve”, then in your wallet allow your tokens to be used for providing liquidity

10. Confirm Add Liquidity:

• After approval, confirm the swap. A confirmation dialog will appear in your wallet. Confirm the transaction, and it will be processed.

11. Wait for Confirmation:

Your transaction will be submitted to the Planq network. Wait for it to be confirmed by miners. You can track its progress on Planq exploler or in your wallet.

12. Tokens in Your Wallet:

Once the transaction is confirmed, you'll have the Liquidity tokens in physica dex.

Note: This tutorial assumes you already have tokens in your wallet and are familiar with using a DEX.

Remember that providing liquidity comes with certain risks, including impermanent loss (fluctuations in the value of your assets compared to simply holding them). Ensure you understand these risks before providing liquidity, and only contribute what you're willing to risk. Additionally, be mindful of gas fees, which can be high on Planq-based DEXs, especially during periods of network congestion.