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You can provide liquidity to BEX by committing tokens to a specific pool. Liquidity providers (LPs) earn a yield on their capital generated by the swap fees paid into the pool. In return for these fees and other potential benefits, LPs must deal with the fact that the collateral they deposit is not fixed. LP positions continuously rebalance between the two tokens in the pair as swaps occur in the pool. This rebalancing can impose a cost on LPs in the form of impermanent loss (IL), which is the difference between the value of the rebalanced position and an equivalent static portfolio of the two assets. The larger the price ratio of the assets in the pool moves from when you first deposited, the larger the IL cost you experience. LPs on BEX provide full-range liquidity, meaning that your liquidity is always active at every possible price point in the pool.
BEX pools overview page listing all available liquidity pools

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Adding liquidity

Adding Liquidity is the process of providing the two constituent tokens of a liquidity pool to either 1) create a new LP position, or 2) commit additional capital to a pre-existing LP position.
BEX add liquidity interface for depositing tokens into a pool
When adding liquidity to an LP position, you have the following parameters to choose from:
  • The token pair to provide liquidity for
  • Deposit quantity, which can be fixed in terms of either side of the pair
  • Maximum slippage (only applies when providing unbalanced amounts that require rebalancing) and transaction deadline

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Managing LP positions

View your existing LP positions on Bera Hub.
BEX LP position management page showing your active liquidity positions
To remove liquidity from a specific position, you can withdraw your LP tokens. This removes the liquidity from the pool and returns the underlying collateral (based on the current token prices) to you.
BEX withdraw liquidity interface for removing tokens from a pool