Liquidity
Deposits, LP ownership, fees, and withdrawals.
Liquidity providers supply the tokens that buyers and sellers trade against. A deposit creates a Uniswap v4 position represented by an NFT owned by your wallet. It is a claim on a changing pool position, not a promise to return your original quantities.
What you deposit
The two-sided flow takes the market's branded stablecoin and paired asset. Mint the branded units first if you hold USDG. The required ratio follows the current pool price; unused amounts return as the same tokens supplied.
Open a market's Add liquidity tab. Where the deployment supports zaps, choose ETH, USDG, or Both sides:
| Mode | What happens |
|---|---|
| Both sides | Deposit the branded stablecoin and paired asset directly. Use this to seed an empty pool. |
| USDG | Mint the brand, trade part of it for the paired asset, then add both to the pool in one deposit transaction. A token approval may be needed first. |
| ETH | Wrap and sell ETH for USDG, then follow the USDG deposit route in the same transaction. Keep ETH available for gas. |
ETH and USDG zaps require existing liquidity in the target pool. ETH also needs an available WETH/USDG trading pool. Review the estimated deposit, trading costs, and maximum slippage. Minimum-output and minimum-liquidity checks can cause the transaction to revert if execution falls short.
Unused zap amounts return as USDG and the paired asset, including for ETH deposits. They do not necessarily return as the token you paid with.
Uniswap v4 supports liquidity concentrated within a chosen price range. The platform's current deposit flows use full range, spanning the pool's usable prices. They do not automatically adjust that range. A custom narrower position can move out of range and stop earning until the price returns.
Two sources of LP earnings
Trading fees accrue through Uniswap's position accounting. Separately, the brand's reserve yield is split between configured destinations. Its LP portion is donated into the pool and credited to liquidity that is in range when distribution occurs. These are different income streams; neither is a fixed return. See Fees and revenue.
Balances and withdrawals
If traders buy the asset, your position generally holds less of it and more branded stablecoins. If they sell, the mix moves the other way. Price changes can leave the position worth less than simply holding the original tokens, even after fees.
Withdraw and collect fees through the Uniswap v4 PositionManager using your NFT. The app's deposit panel does not provide this flow. Withdrawal returns the pool's tokens; redeem branded units separately if you want USDG.