Adding V3 Liquidity

Adding V3 Liquidity on Thruster

  1. Connect Wallet: Connect your wallet to the Thruster interface on the top right-hand corner.

  2. Navigate to Portfolio: Click on the "Portfolio" tab on the Thruster interface to access the liquidity pool section. Click on “Create Position”.

  3. Select Tokens: Choose the tokens you want to add liquidity for.

  4. Set Price Range: Define the price range within which you want to provide liquidity.

  5. Enter Amounts: Enter the amount of each token you wish to contribute to the liquidity pool. The interface will automatically calculate the equivalent value of the other token required for the liquidity pair.

  6. Review Parameters: Review the parameters you've set, including the price range and liquidity amounts.

  7. Approve Token Spending (if required): If it's the first time providing liquidity for a particular token, you may need to approve token spending.

  8. Confirm Transaction: Review the transaction details, including the amount of each token being contributed and the price range. Confirm the transaction through your connected wallet.

  9. Wait for Confirmation: Wait for the transaction to be confirmed on the Blast blockchain. This usually takes a few seconds.

  10. Transaction Complete: Once confirmed, the liquidity will be added to the Thruster V3 pool, and you'll receive liquidity provider (LP) tokens representing your share of the pool.

  11. View LP Position: You can view your LP positions in the “Portfolio” tab on Thruster’s interface. Make sure to always check that your LP positions are in range!

V3 Range Strategies

Tight Range For Correlated Assets

While providing liquidity in a tight range may not be suitable for non-correlated pairs like WETH/USDB due to impermanent loss (IL), doing it on correlated assets like ezETH/WETH is a lot more effective! Users can maximize fee returns by concentrating their liquidity to minimize downside risks such as IL, increase capital effiency, and enhance liquidity for traders.

Entry and Exit Strategies While Earning Fees

With the V3 style AMM, liquidity ranges can also be put below or above current token prices. This strategy can be used to accumulate or sell tokens in a specified range while earning fees at the same time.

Consider the BLAST/USDB pool- When you want to sell BLAST, deposit BLAST as single-sided liquidity into the pool and set the range based on your target selling price. If the BLAST price rises above your range, your assets will have converted into USDB. For buying, simply reverse the process and supply single-sided liquidity for USDB and set your target buying range. When the price goes below the range, your USDB will be converted into BLAST.

Another great way to utilize V3 ranges is for dollar cost averaging (DCA). It functions similar to range orders but operates within a wider range. The strategy is used to either accmulate more assets as prices dip or sell as prices move up, all while earning fees. For example, you might create a BLAST/USDB pool with a range of 0.02-0.1 to sell BLAST as the price moves up.

Automated Liquidity Managers

Since the V3 style AMM is extremely flexible and supports an almost infinite amount of strategies, sophisticated users or developers can create customized curves or algorithms on the Thruster AMM itself.

The Skate, Gamma, Steer, and Ichi team has already launched their ALM vaults on top of Thruster, with more protocols and strategies on the way! Retail users can access these actively managed and complexly designed liquidity managers, enabling them to provide liquidity like a professional.

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