Earn

Supply liquidity to a market and withdraw it again

Traders need someone on the other side of their swap. Supplying liquidity puts you there. You deposit the market's collateral token into a pool, the pool takes the opposite side of the swaps traders open, and you earn the fees they pay.

Supplying liquidity can be a way to passively generate fees, take a directional bet on rates, or both. Returns are variable and not guaranteed, as each pool is exposed to market risk, including interest rate movements.

Step 1 — Choose a market

Go to Earn. Each row is a pool you can supply to, showing:

• Utilization — how much of the pool is already backing open swaps. High utilization can mean higher fee income, but less room to withdraw.

• 7-Day APY — what the pool has actually returned over the past week, annualized. Recent history, not a forecast, and it reads N/A on pools too new to measure.

• Pool Fee — what traders currently pay to use this pool.

The direction badges mean the opposite of what they mean on the trading pages. They describe your exposure as a supplier, not the trader's. Supplying to the fixed pool shows as Short ↓, because you are taking the other side of traders going long.

Step 2 — Supply

Clicking a row opens the market on its Supply Liquidity tab.

1. Make sure you are on the Supply tab.

2. Enter an Amount, or press MAX.

3. Check the preview line showing roughly how many shares you will receive.

4. Approve, then Deposit.

Your wallet may ask you to sign more transactions than you expect. Supplying and withdrawing settle any expired swaps in that market first, and those are batched ten at a time. The button tells you where it is up to, reading something like "Settling expired 3/7…". Let it finish.

Under See advanced options there is a Max slippage setting, on by default at 50 basis points, which cancels the deposit if the share price moves while you are signing. Leave it on.

Step 3 — Withdraw

Same widget, Withdraw tab. Enter an amount, or MAX for your whole position, then Withdraw.

You can withdraw whenever the market has liquidity that is not committed to open swaps. On a heavily utilized pool you may only be able to take out part of your position and need to come back for the rest.

Vesting — read this before you withdraw

Profits earned by the pool do not become withdrawable the moment they are made. They vest over a period. This stops anyone depositing just before a profitable settlement, collecting a share of it, and leaving.

It has three consequences worth knowing:

• Withdrawing during your vesting period forfeits your unvested profit. Your shares are valued at the price you entered at rather than today's price. The widget tells you exactly how much you would give up, and makes you tick a box confirming you understand before it will proceed.

• A new deposit restarts your vesting clock. Adding to an existing position converts at today's share price, but resets the period.

• Withdrawing early also gives up your share of the pool's remaining vesting drip, which is redistributed among the suppliers who stay. Again, the widget quotes the amount.

If you can wait until vesting ends, you keep the lot. The Your Position panel shows Unvested Amount and Vesting ends in so you can see where you stand.

Occasionally a full exit is blocked for a short while because recent settlement gains are still vesting into the pool. Withdraw slightly less than your whole position, or come back later.

Reading your position

The Your Position panel shows:

• Shares — your claim on the pool. This number only changes when you deposit or withdraw.

• Position value — your shares at today's price. This is the number that moves.

• Available — what you could withdraw right now, given utilization and vesting.

Your return comes from the share price rising, not from shares being added. To manage positions across several markets, use the LP tab in your Portfolio, where each row has a Manage button that opens this same widget.

When supplying is unavailable

• Deposits Blocked — the pool was wiped out by settlement losses and is waiting to be reset. Do not supply until it has been.

• Supplying liquidity to this market is not allowed at this time — deposits are paused on that market.

• Preview unavailable — the app could not price the deposit, so it has disabled it rather than guess. Try again shortly.

Related

• Opportunity — why supply to Kairos

• How it Works — the mechanics in more detail

• Legal Disclaimers & Risk Disclosures

Supplying liquidity puts capital at risk. Yield is variable, depends on market activity, and is not guaranteed. You can lose part or all of what you supply.