Liquidity Pool
"A liquidity pool is a crowdsourced pool of cryptocurrencies or tokens locked in a smart contract that is used to facilitate trades between the assets on a decentralized exchange (DEX). Instead of traditional markets of buyers and sellers, many decentralized finance (DeFi) platforms use automated market makers (AMMs), which allow digital assets to be traded in an automatic and permissionless manner through the use of liquidity pools." - Gemini
Our liquidity pool consists of a pairing of ETH and Honey. You are able to swap your Honey for ETH (selling Honey), or swap ETH for Honey (buying Honey).
Pricing
The price of Honey is determined by the ratio of Honey to ETH in the pool. For example, if there was 100 ETH and 200 Honey in the pool, the price of Honey would be 0.5 ETH (100 / 200).
Buying Honey
To buy Honey is to swap ETH for Honey in our liquidity pool. To buy Honey follow these instructions:
Go to our pairing on Uni-Swap.
Enter the amount of Honey tokens you want to buy in the HNY portion. The cost in ETH will automatically fill in.
If you have enough ETH to make the purchase, click the "Swap" button.
Once the transaction goes through, the Honey will be added to your wallet. If you don't see your balance in your wallet, click here to learn how to import Honey.
Selling Honey
To sell Honey is to swap Honey for ETH in our liquidity pool. To sell Honey follow these instructions:
Go to our pairing on Uni-Swap.
Enter the amount of Honey tokens you want to sell in the HNY portion. The price in ETH will automatically fill in.
If you have enough Honey to make the purchase, click the "Swap" button.
Once the transaction goes through, the ETH will be added to your wallet.
Adding Liquidity
When you add liquidity, Uni-Swap gives you LP tokens. These tokens have their own utility which is a big part of the Honey ecosystem. This utility includes:
Stake LP tokens on our website to earn more Honey.
Uni-Swap charges a 0.30% fee on all trades which is added to the reserve pool. These fees are proportionally distributed among all of the LP token holders.
To add liquidity, follow these instructions:
Read up on impermanent loss to make sure you understand what you're doing.
Head over to this link.
Enter the amount of Honey tokens you want to add. The ETH value will automatically fill in for you depending on the amount of Honey tokens you input. When adding liquidity, you must add an equal amount of ETH and Honey.
If you haven't already, you must then approve the contract by clicking the "Approve HNY" button and confirming the transaction in the MetaMask (or Coinbase Wallet) window that appears. This is a one-time fee.
Once that transaction has gone through, you will be able to add your liquidity. You can now click the "Supply" button and confirm the transaction in the MetaMask (or Coinbase Wallet) window that appears.
That's it! You have added liquidity and received some LP tokens. To see these tokens in your
Head over to the staking page on our website to stake your LP tokens to earn Honey.
Removing Liquidity
When you remove liquidity, Uni-Swap burns your LP tokens, and in return gives you your share of ETH and Honey tokens back.
To remove liquidity, follow these instructions:
Head over to this link.
Select the percentage of liquidity you would like to remove.
If you haven't already, you must then approve the contract by clicking the "Approve" button and confirming the transaction in the MetaMask (or Coinbase Wallet) window that appears. This is a one-time fee.
Once that transaction has gone through, you will be able to remove your liquidity. You can now click the "Remove" button and confirm the transaction in the MetaMask (or Coinbase Wallet) window that appears.
That's it! You have removed liquidity and received your ETH and Honey tokens back.
LP Tokens
LP tokens are given to liquidity providers by Uni-Swap. Click here to find our more information about LP tokens.
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