EuclidSwap Testnet — Chapter 5 — Liquidity Pools

Liquidity pools are the backbone of decentralized trading on EuclidSwap. In this section, you’ll learn what liquidity pools are, how to add and remove liquidity, and how to manage your liquidity across different token pairs. If you missed the earlier chapter on voucher tokens, click HERE. If you want to skip straight to the testnet itself, click HERE for the login page. Whether you’re supporting existing markets or launching new ones, liquidity pools enable you to earn fees while powering cross-chain swaps — all within a unified, multi-chain environment.

What are Liquidity Pools?

Liquidity pools hold pairs of tokens, allowing users to swap between them without relying on a centralized order book. When you provide liquidity to a pool, you deposit tokens that other users can trade against. In return, you earn a share of the trading fees each time someone swaps using that pool.

For example, if you contribute EUCL and USDC to the EUCL/USDC pool, those tokens become available for others to trade. Each time a swap occurs, a small fee is collected and distributed among all liquidity providers — including you.

Think of It Like a Vending Machine 🍫

Imagine a vending machine that lets people trade snacks — say, chips for chocolate. But for the machine to work, it needs to be stocked with both. That’s where you come in.

When you provide liquidity, it’s like stocking the machine with snacks. Instead of chips and chocolate, you’re adding two tokens — like EUCL and USDC. Now, when someone wants to swap EUCL for USDC, the machine (aka the DEX) uses your tokens to complete the trade.

And why would you do that? Because every time someone makes a trade, you earn a small fee — like getting a free snack each time someone buys one.

Exploring the Pools Page

The Pools page is your hub for managing liquidity on EuclidSwap. At the top, you’ll see key statistics:

• Total Volume: The all-time trading volume across all pools.
• 24H Volume: The total value traded in the last 24 hours.
• Total Liquidity: The total value currently locked in all liquidity pools.

Below that, the My Pools section lists any pools you’ve already contributed liquidity to.

In the All Pools section, you can browse available liquidity pools and view key details:

• Pool Pair: The two tokens being traded (e.g., ETH/EUCL, EUCL/USDC).
• TPL (Total Pool Liquidity): The total dollar value of assets currently in the pool.
• APR: The estimated annual return for liquidity providers, updated in real time.

Providing Liquidity to a Pool

To add liquidity, simply press the ‘Add Liquidity’ button next to the pool you want to contribute to.

🔹 Note: You must hold a sufficient balance of both tokens in the pair. For example, to add liquidity to the EUCL/USDC pool, you need both EUCL and USDC in your wallet.

1. Select the amount of one token you want to add — the second token’s amount will be auto-calculated based on the pool’s ratio.
2. Review the details.
3. Press ‘Provide Liquidity’ to confirm the transaction.

How Is the Amount Calculated?

Liquidity must be added in proportion to the existing token ratio in the pool.

For example, if the EUCL/USDC pool holds 100 EUCL and 50 USDC, the ratio is 2:1. That means if you add 10 EUCL, you must also add 5 USDC to maintain balance. The system enforces this ratio to ensure fair pricing for all traders.

Once your transaction is complete, check the “My Pools” section to view your positions.

Withdrawing Liquidity from a Pool

Liquidity Pool Tokens

When you provide liquidity, you receive Liquidity Provider (LP) tokens in return. These act as a receipt for your deposit and represent your share of the pool.

• As trades occur, you earn a portion of the fees based on how many LP tokens you hold.
• When you’re ready to withdraw, you return your LP tokens to reclaim your deposited assets — plus any rewards earned.

How to Withdraw Liquidity

1. Navigate to the pool you want to withdraw from.
2. Go to the ‘Withdraw’ tab.
3. Select the amount of LP tokens you want to redeem.
4. Press ‘Withdraw Liquidity’ to confirm the transaction.

Once complete, your original tokens (plus accumulated fees) will be returned to your wallet.

🔹 Note: You can withdraw your liquidity at any time along with any earned fees.

Unifying Liquidity

Liquidity pools are the foundation of EuclidSwap, enabling seamless, decentralized trading while rewarding liquidity providers. Whether you’re adding liquidity, managing your LP tokens, or withdrawing your assets, EuclidSwap makes the process straightforward and efficient — ensuring your tokens work for you. If you want to get started on the app, Click HERE for the login page. To find additional articles remember to search our profile.

Euclid Protocol’s vision is to bring users back to the fundamentals of DeFi — empowering users with transparency, accessibility, and control over their financial activities — making DeFi great again!

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