How to add liquidity on Ethereum: provide LP & earn fees
Become a liquidity provider on Ethereum: deposit tokens into Uniswap v3, Uniswap v2, Uniswap v4 pools and earn a share of every swap fee — straight from your wallet, without handing funds to anyone.
What does adding liquidity mean?
A liquidity pool holds two tokens. Every time a trader swaps through it, they pay a fee (e.g. 0.05%–1%) that is shared among liquidity providers by their share. In concentrated-liquidity pools you choose a price range: you only earn fees while the price is inside it.
Step by step
- Connect your wallet (MetaMask, Rabby, Coinbase Wallet) and make sure you hold ETH for network fees.
- Find a Ethereum pool in the liquidity explorer — sort by TVL or fee APR, then check 24h volume and the token security score.
- Choose a price range (concentrated pools) or deposit proportionally (standard pools). A narrow range earns more fees but goes out of range sooner.
- Deposit both tokens, or use Zap In with a single token — BaniPool swaps part of it and deposits in one flow.
- Track the position: value, collected fees, PnL and in/out-of-range status. Claim fees or withdraw any time, including Zap Out to a single token.
Ethereum for liquidity providers
Ethereum has the deepest DeFi liquidity. Uniswap v2, v3 and v4 pools for major pairs (ETH, stablecoins, WBTC) carry high volume and set the reference price for other networks. Gas is the most expensive of the supported networks — depositing, claiming and re-ranging can cost several dollars per transaction. Best for larger capital and ranges you do not adjust too often.
Risks to understand
Impermanent loss: if the price moves far, the position can be worth less than simply holding the tokens. Out-of-range positions earn no fees. New tokens can be scams (unsellable, high taxes, whale holders) — BaniPool checks token and pool security before you deposit.
DEXes on Ethereum supported by BaniPool
Top Ethereum pools (TVL)
| Pool | DEX | Fee | TVL | Fee APR |
|---|---|---|---|---|
| USDC / WETH | Uniswap v3 | 0.05% | $78.9M | 80.1% |
| WETH / USDT | Uniswap v3 | 0.3% | $76.1M | 72% |
| USDC / WETH | Uniswap v3 | 0.3% | $42.5M | 29.8% |
| USDC / USDT | Uniswap v3 | 0.01% | $33.6M | 14.2% |
| USDC / WETH | Uniswap v2 | 0.3% | $17.9M | 10.3% |
| WETH / USDT | Uniswap v2 | 0.3% | $12.9M | 9.9% |
| ETH / USDT | Uniswap v4 | 0.3% | $12.8M | 20.9% |
| WETH / USDT | Uniswap v3 | 0.05% | $12.7M | 59.9% |
| ETH / USDC | Uniswap v4 | 0.3% | $10.3M | 27.8% |
| USDC / WETH | Uniswap v3 | 0.01% | $7.9M | 19.2% |
FAQ
What is the minimum capital to add liquidity on Ethereum?
BaniPool sets no minimum. What matters is network cost relative to capital:
Does BaniPool hold my funds?
No. BaniPool is non-custodial: you sign every transaction in your own wallet and it goes straight to the official DEX contracts/programs. Positions are owned by your wallet.
How much does BaniPool cost?
Direct deposits (no swap) are free. For Zap and swaps, any platform fee is always shown before you sign, next to the network fee.
Why is my position "out of range"?
The pool price moved outside your chosen range, so the position holds a single token and stops earning fees. Wait for the price to return, or withdraw and re-add with a new range.