Add Liquidity (V3)

The V3 mode allows for concentrated liquidity where liquidity is allocated within specific price ranges. This leads to increased liquidity at preferred prices, compared to allocating liquidity across all prices.

1. To add liquidity using V3, if starting from the “Swap” section, you’ll need to click on the orange “V3 Add Liquidity” button.

2. When adding liquidity through V3, you’ll need to choose either manual or auto mode. The auto mode automates the adjustment of price ranges for LPs. The manual mode grants LPs control over the price ranges of the provided liquidity. For more information on the differences between the two modes, visit this page.

Add Liquidity V3 - Manual Mode

1. Set a range. You have the option to use one of four presets: full, wide, common, or narrow. You can view the liquidity distribution over the selected range with the Range Visualizer shown on the right side. You also have the option to manually enter the minimum and maximum prices, i.e., in our example, the minimum and maximum m.USDC per METIS price.

2. Enter the amounts. In our example, the inputted amounts are 0.01 METIS and 0.512945 m.USDC. This ratio is dependent on the price range relative to the market price.

3. Once confirmed, approve the amount to add liquidity by clicking on the button below – “Approve m.USDC” is shown in this example.

4. After clicking the orange “Approve” button from the previous step, Your Web3 wallet will prompt you to approve the transaction. Review all the details, then click approve.

Manual LP preset strategies:

• Full Range - Liquidity is provided across the full price spectrum of the traded asset. A full-range spread can be ideal for assets that experience volatile price action.

• Wide Range - Liquidity is concentrated in a wider price range. This can be ideal for assets that experience moderate volatility, as it provides sufficient liquidity across a wider range of prices.

• Common Range - Liquidity is focused closely around the current market price on both the buy and sell sides.

• Narrow Range - Liquidity is concentrated in a much narrower price range close to the current market price. (This is ideal for assets that experience stabler price movement as it reduces the amount of capital required for liquidity.)

Add Liquidity V3 - Auto Mode

1. Select your preferred provider and strategy. Hercules has partnered with both Gamma and Steer. Gamma provides a narrow-range strategy, which tends to earn higher yields, but with greater risk of impermanent loss in a volatile market. Steer provides their static stable “Rebalance” strategy, which may earn lower yields but is resistant to permanent loss.

2. Enter the amounts. In our example, the inputted amounts are 0.01 METIS and 0.512945 m.USDC.

3. Once confirmed, approve the amount to add liquidity by clicking on the orange button below.

4. Confirm the details of the transaction in your wallet. You may enter a custom spending cap and edit the transaction fee amount.

5. Click on the blue “Approve” button to execute the transaction and add liquidity.