welcome crypto lunatic, hope you're cool today we are going to see Uniswap and how we can provide liquidity so that our cryptocurrencies multiply and generate interest so let's get started first of all when we enter Uniswap it will always send us to this main screen and what is to exchange will be selected in case we want to change token but now we are going to see what pool is pool is where we will be able to provide liquidity to Uniswap But what is providing liquidity? more than anything is to take the tokens that we have and put them here in Uniswap Uniswap is going to take your tokens and work them and every time someone makes an exchange in Uniswap with the token that you have contributed Uniswap charges 0.3% for this transaction so this small commission is the one that goes to the well and all the people who have put money there, it will generate an interest then let's start the process to start providing liquidity, we press add Liquidity or provide liquidity and here is a very important detail, whenever you want to provide liquidity you must provide 2 tokens and in the same amount I give you an example if I put 100 dollars of Ethereum I will also have to put 100 dollars of the other cryptocurrency that I want to contribute therefore here in the first frame Ethereum is already marked, here I put the value I want to contribute below I'm going to select the token that I want to contribute that would be the simplest way to provide liquidity but this does not give you much information so now I want to show you a way maybe a little longer but you will find a lot of information that will really clarify how much you will be able to generate per day and thus be able to project it in time so we have to select the three points that are here above and we're going to go where it says analytics when we enter this page we will be able to see everything that is happening in Uniswap see all your statistics For example here it tells us that in 24 hours more than 258 million dollars have been traded and the total liquidity fund it has is 607 million dollars So here we see its graph and how it has grown over time, literally shooting up this means that this exchange is growing and people are getting used to using a decentralized exchange and also provide liquidity and if we go down a little more, here we will see the top of the tokens In other words, which are the tokens that are being traded the most, in this case, as you see, the first is Ethereum below you also see the top pairs that is, which are the most traded here If you can fix the first Ethereum versus USDT that would be the Theter dollar with a total 24-hour volume of $ 29 million and so it shows you all the other pairs that are being traded the most well once seen that I'm going to teach you to provide liquidity, so very simple up here in search, I'm going to look for the DOS cryptocurrency and here the search engine is very intelligent and always gives you two results the top part will be the pairs that is, what pairs exist of this cryptocurrency DOS versus Ethereum is currently being traded What does this mean? that with Ethereum I will be able to buy TWO and if I sell TWO I will be able to receive Ethereum and also below appears another category called tokens this is the currency you are looking for here I must be very clear, when they are very new currencies, multiple options may appear some of those may be scams so you have to be careful here I am showing you an example so that you realize, I put GRO and 3 pairs appear and 3 equal tokens appear below then you have to be very careful whenever you are going to enter to provide liquidity try to enter with a link from an official page of this because or if they could not scam you, as you see here there are multiple pairs and if you don't know you could put the money in the wrong place and lose it going back to the DOS example now I'm going to select the pair DOS – Ethereum and when selecting it It will direct us to the profile of this pair and we will be able to see all the information that is happening here for example, at the top it will say, do you want to provide liquidity? or do you want to trade? in this case make the change with cryptocurrencies below it will also show you what the current price is, at which it is in the market below tells you the total liquidity that there is this means all the silver that is in DOS available for people to trade and also below it indicates the volume in the 24 hours that is, the total amount that has been traded from DOS in Uniswap if you go down a little more You will see the total commissions that have been generated in 24 hours This number is important, because depending on the percentage that your liquidity contribution is what you will earn from this commission that has been collected in 24 hours so once we are clear about these numbers let's see how to provide liquidity for that we must go up and where it says add Liquidity you click when selecting Uniswap will send you immediately that you want to contribute TWO and also in this case it says that we want to contribute Ethereum for the example we are going to do it like this In this case I am going to say that I want to enter 1,000 TWO to liquidity and also immediately the system tells you that you have to put its equivalent to 0.35 Ethereum but the most important detail here is the number that you send us from the pool It is in the amount that we have total of the pool therefore with these numbers we will be able to calculate how much commission we are going to earn per day well crypto lunatics, if we put the numbers to practice they would be like this the 1,000 TWO that I just contributed equals $ 130 therefore the 0.35 Ethereum that I am going to contribute is also equivalent to 130 dollars which gives me a total of 260 dollars contributed in liquidity we also saw that the commissions in 24 hours were $ 189 and the percentage that I had from the pool for having provided this liquidity was equal to 0.05% therefore if I at this $ 189 commission He calculated the 0.05% that I have the pool It is equivalent to that per day I am generating 0.09 dollars of profit in other words I am obtaining a daily return of 0.03% if these rates are maintained for a month I could generate 0.9% profitability and if these numbers were to last for a year I could generate 10.8% annual profitability with the numbers that you saw this will always depend on the cryptocurrency you choose the liquidity that you can contribute, etc.
I'm showing you how I should calculate it so that it is easy for you to see how much you are going to generate with what you are going to contribute well crypto lunatics, to continue
with the example of providing liquidity in DOS we have the TWO on top and Ethereum below in this case they see that the figures changed because I connected my wallet to do the example and see how it continues now we would only have to put supply in this case, how will my wallet do the first time I'm going to do this? it is asking me to approve this transaction so I should put approve DOS connects to your wallet and asks for this permission this permission is for DOS to access your wallet and make the transactions when you request the exchange in Uniswap Also to authorize this permit, you have to pay a small fee in this case it tells me that it is 0.006 and fraction of Ethereum in this case you would try and we could already provide liquidity to what is Uniswap once you authorize this permission now they are going to activate what is supply and there they will be able to provide liquidity when they click what is supply They will ask for a permit again and they will have to pay the fees so that liquidity is provided and the process would be finished there in this case I don't have too much Ethereum to be able to provide liquidity, so I would leave the process up to here I hope this explanation of how to provide liquidity and calculate how much return you will get, it will serve you It should be noted that investing in what is DeFi, decentralized finance can be Uniswap like other protocols they are quite new so there is a risk some of these protocols could have a security flaw and we could lose our tokens or cryptocurrencies so you must be clear that there is an associated risk to provide liquidity either in Uniswap or other protocols therefore this is NOT investment advice I am only showing you a tool and how it is used if you want to continue learning more about cryptocurrencies remember to subscribe to the channel activate the bell so that you get all the notifications when I upload a new video I also invite you to go to the playlists here are all the courses that I have created for you in order to make it easier for you to learn the world of cryptocurrencies remember also, leave me a like if you liked the video