Liquidity & LP
What Is Liquidity?
Liquidity is the amount of tokens available in a pool for trading. The deeper the liquidity, the easier and cheaper it is to swap tokens with minimal price slippage. In DeFi, users—not centralized exchanges—supply this liquidity to protocols like Raydium.
Why Provide Liquidity?
- Earn a share of trading fees from every swap in the pool
- Qualify for $THAI LP rewards and bonus airdrops (see details)
- Support deep, stable markets for all traders and reduce price impact for yourself
How AMMs & LP Tokens Work
- Automated Market Makers (AMMs): Raydium uses AMMs to pool tokens and set trading prices automatically, based on supply/demand.
- LP Tokens: When you add liquidity (e.g. THAI/SOL or THAI/USDT), you receive LP tokens that represent your share of the pool.
- Withdrawing: Redeem LP tokens at any time to withdraw your original assets plus any fees/rewards earned.
How to Add Liquidity
- Go to Raydium.io and connect your Solana wallet.
- Select the “Pools” tab and find THAI/SOL or THAI/USDT pool.
- Deposit equal values of both tokens and approve the transaction.
- You receive LP tokens to your wallet—hold these to qualify for rewards and airdrops.
How to Remove Liquidity
- Go to Raydium.io and the relevant pool
- Click “Remove Liquidity” and select how much LP you want to redeem
- Approve the transaction and receive both tokens (plus rewards) back to your wallet
- Check Solscan or your dashboard to verify the withdrawal
LP Rewards & Airdrops
- Earn swap fees automatically by holding LP tokens
- Eligible for weekly/monthly LP mining rewards and monthly airdrops
- Snapshot: You must hold LP tokens in your wallet at snapshot time to be eligible for that month’s airdrop/rewards.
- Track everything on your dashboard or Solscan
Risks & Security
- Impermanent Loss: When the price between tokens in the pool changes, you may end up with less value than simply holding the tokens. See Raydium Docs for more.
- Smart Contract Risk: Always use official Raydium pools and verify contracts before depositing.
- Remove liquidity anytime if you want to reduce risk.
- Never share your wallet seed or private keys.
FAQ & More Resources
- Can I add or withdraw liquidity anytime? Yes, you control your funds at all times.
- What if I miss the snapshot? You’re only eligible for that round’s rewards if you hold LP at the snapshot time.
- Where can I get support? Join Discord or see LP Provider Rewards.