01What
Adds your assets to an existing AMM pool. In return you get LP tokens — your claim on a share of the pool and the fees it earns.
02Why you'd use it
You become one of the pool's backers: every trade pays a fee, and your LP tokens entitle you to your slice of the growing pot.
03How
- 1Identify the pool: Asset 1 and Asset 2 currencies with issuers (blank issuer for XRP).
- 2For a balanced deposit, enter both amounts roughly at the pool's current ratio (check AMM Pool Info first).
- 3For a single-asset deposit, enter just one amount and leave the other blank.
- 4Submit and confirm tesSUCCESS. Your LP token balance appears as a trust-line balance.
Watch out
- Single-asset deposits are convenient but effectively swap half your deposit inside the pool, so you absorb a small price impact.
- LP token value floats with the pool — impermanent loss applies: big price divergence between the two assets can leave you worse off than holding.
- Depositing a token requires you to already hold it (and its trust line).
- Never deposit into a pool without checking its current ratio — a pool that is badly off-market will cost you on entry.
For example
The XRP/USD pool has been doing steady volume. You deposit 100 XRP and the matching 52 USD, receive LP tokens for your share, and from then on collect your proportion of every trade's 0.5% fee.