FAQ

Frequently Asked Questions about Acala Swap

Adding New Trading Pairs

How are new tokens listed on Acala Swap?

Each new trading pair listing must be approved through a governance vote.

Do all new trading pairs go through the bootstrapping process?

The Bootstrap process is optional.

Liquidity Providing (LPing)

What do I get for being a liquidity provider (LP)?

All LPs: Earn your proportion of the trading fees for the trading pair that you provide liquidity to. Every trade is subject to a 0.30% fee.

Certain pools: Earn liquidity mining rewards (in ACA) from occasional Liquidity Programs. Go to the Liquidity Mining section below to learn more.

🚨You can read more about LP Returns & Risks here.

What tokens are the trading fees that I earn paid in?

Your trading fees will be paid in the same two coins that you provide liquidity to. The ratio of these tokens reflects the ratio in the pool.

Why can't I see the trading fees I'm earning?

The trading fees you earn are added back to the liquidity you are providing. You'll receive your fees once you redeem your LP tokens.

🚨What are the risks with adding to an LP pool?

There are various risks of being a liquidity provider especially when there are significant fluctuations in the underlying asset exchange rates, which may result in LPs being worse off than simply holding the tokens. You can read more about LP risks here and also learn more by watching this video.

Why can’t I provide liquidity?

You must provide liquidity as a pair. The only time you can provide single-sided liquidity is during the bootstrapping period.

Why did I receive a different amount and balance of tokens than when I put in?

The tokens that you receive after withdrawing your liquidity from the LP pool reflect the ratio of the tokens in the pool when you withdraw, not when you contributed. You can learn more about how Acala Swap works by watching this video.

Liquidity Mining

Is there a liquidity mining program?

Liquidity mining will be used to incentivize certain trading pairs.

What does it mean to stake my LP tokens?

When you stake your LP tokens, you are locking them on the Acala platform. Users stake their LP tokens to earn liquidity mining rewards. Users can unstake their LP tokens at any time, but they will no longer earn liquidity mining rewards.

Do I have to stake my LP tokens to earn liquidity mining rewards?

Yes.

What happens if I don’t stake my LP tokens?

If you don’t stake your LP tokens, you will only be earning your proportion of the trading fees for the pair you provide liquidity to. You will not earn any liquidity mining rewards.

How does claiming my ACA rewards work?

ACA rewards are accumulated over time and LPs can claim these rewards at any time. However, if LPs keep the rewards in the pool until the end of the program, they'll be eligible for a Loyalty Bonus paid in ACA. Users can also remove their LP tokens and still be eligible for the Loyalty Bonus as long as they don't claim their ACA rewards.

Can I claim my LP tokens and still earn the Loyalty Bonus?

Users can remove their LP tokens and still be eligible for the Loyalty Bonus as long as they don't claim their ACA rewards.

Liquidity Bootstrapping

Do I have to participate in the bootstrap to earn ACA liquidity mining rewards?

No. You can provide liquidity after the bootstrapping and still earn ACA liquidity mining rewards as long as you stake your LP tokens.

Are there additional incentives for users that participate in bootstrapping?

No. However, users that participate in bootstrapping are the pioneers that enable a new trading pair for the entire protocol, so you have that going for you, which is nice.

🚨 What happens if I provide only one token as liquidity during the bootstrapping period?

If you are contributing to only one side of the pool (say Token A), you are effectively converting 50% of Token A into Token B based on the exchange rate when the Bootstrap ends (and the pool opens for trading). You can learn more by following this bootstrap simulation.

Do I need to claim my LP tokens?

Yes. Please claim your LP tokens. If you would like to earn liquidity mining rewards, you will also need to stake your LP tokens on the Earn tab.

Can I provide liquidity after the liquidity targets are met?

Yes.

Can I provide liquidity after the bootstrapping period ends?

Yes. Once the token pair launches for trading, you can provide liquidity. However, you will not be able to provide single-sided liquidity. You must provide liquidity in token pairs.

Can I withdraw my liquidity during the bootstrapping period?

No. You will have to wait until the trading pair is live to withdraw your liquidity.

Can I provide liquidity multiple times throughout the bootstrap period?

Yes.