How To Add Liquidity To The Umbria Exchange
The Umbria team recently announced the launch of the Umbria Exchange on Polygon. The Umbria Exchange is a fully decentralized AMM exchange, that facilitates the swapping of Ethereum ERC20 tokens. Users of the exchange can swap between any ERC20 tokens, and can also deposit their tokens into the exchange to earn interest on their cryptocurrency holdings.
To earn interest on your cryptocurrency holdings, you can simply provide liquidity to any pair of cryptocurrencies supported by the exchange (for example Umbria and Polygon), and receive LP tokens in return. The LP tokens act as a receipt that prove you have provided liquidity to the exchange, and let you redeem the underlying assets (Umbria and Polygon) at any time.
In this article, we explain the steps for providing Umbria (UMBR) and Polygon (MATIC) to the exchange, in order to earn additional UMBR and MATIC each time a user swaps between these two tokens. In the next article, we will explain how you can earn even more UMBR by depositing your LP tokens into the Umbria farm (but this is beyond the scope of this particular article.)
The first step to adding liquidity to the Umbria Exchange, is to hold UMBR and MATIC in your wallet on the Polygon chain. This article explains how to transfer your assets from Ethereum to the Polygon chain.
The second step is to go to the Umbria Exchange website, and click on the Pool tab. Make sure that your Metamask wallet is connected to the Matic blockchain. If you don’t know how to connect to the Matic blockchain, see this article
The next step is to press the Add Liquidity button. MATIC should automatically be chosen as the first option of two for adding liquidity, but you can add liquidity for any two pair of tokens. The second token we are using to add liquidity in this example is Umbria. Add this below address as the second token to add liquidity
0x2e4b0Fb46a46C90CB410FE676f24E466753B469f
The next step is to choose how much liquidity you would like to provide. The amount of liquidity of each token that you add in the pair must represent equal value. For example, if you wish to add $100 of UMBR into the liquidity pool, you must also add $100 of MATIC.
Finally, click the Supply button, and pay for the transaction on your Metamask wallet.
Once this transaction is completed, you will receive UMBR-MATIC LP tokens in your wallet. These LP tokens are used as a receipt, and can be used to redeem the underlying assets you provided to the exchange at any time. In the next article, we will explain how you can stake these LP tokens in the Umbria farm, to receive additional UMBR rewards.
The contract address for the UMBR-MATIC LP tokens on Polygon is
0x9c8c16cD2a7A695Ae30920EE4C3f558893665c55
You can add this address to your Metamask wallet to keep track of your UMBR-MATIC LP tokens.
