Pools
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Adding liquidity allows the contributor to earn 0.25% swapping fees from the pairs they've provided. You can supply liquidity and start earning fees via adding liquidity .
When you've provided liquidity, you will receive VLP tokens (Vavalon Liquidity Provider tokens) as proof of contribution. For example, if a user deposited $AVAX and $TOKEN into a pool they would receive TOKEN-AVAX VLP tokens. These tokens represent a proportional share of the pooled assets.
Adding liquidity to a new pool
If the pool you wish to provide liquidity to does not exist, you can create it of course! Click in order to by providing the tokens.
As the first liquidity provider, you set the initial exchange ratio (price) if one of the tokens in the pair does not exist yet on Vavalon. This often quickly corrects itself through arbitrage and by more liquidity providers adding to the pool.