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Add Liquidity on Uniswap V3

Uniswap V3, the latest version of the popular decentralized exchange, introduces several new features for liquidity providers. This guide will walk you through adding liquidity to a MARK and Ethereum (ETH) pool on the Arbitrum network.

Prerequisites​

Before adding liquidity, ensure you have:

  1. A digital wallet: Set up a wallet compatible with Arbitrum One, like Metamask.
  2. Holdings in MARK and ETH: You need both tokens in your wallet on the Arbitrum One network in a ratio based on the current pool price.
  3. Enough ETH for transaction fees: Gas fees can fluctuate, so have extra ETH available.

Steps to Add Liquidity​

  1. Change your network in Metamask to Arbitrum One
    • If you haven't previously configured the network, you can follow this guide
  2. Connect to Uniswap V3:
    • Visit the Uniswap Interface at Uniswap V3 and connect your wallet.
  3. Select pair:
    • Choose ETH and MARK from the token list. If MARK isn't listed, add it manually using its contract address.
  4. Select fee tier:
    • Choose from the available fee tiers. We advise you to select the 0.3% fee to participate in MARK Arbitrum Staking.
  5. Set price range:
    • In Uniswap V3, you need to set a price range for your liquidity. Your liquidity will only earn fees when the price of the token pair is within this range. You can click the Full Range button to be available for the entire range.
  6. Determine your liquidity amount:
    • Decide how much ETH and MARK you want to contribute. The interface will guide you on the ratio based on the current market price.
  7. Review and add liquidity:
    • Review the details of your position, including the fee tier and the amount of tokens you're contributing.
    • Confirm the transaction in your wallet and wait for it to process.

Monitoring and Adjusting Your Position​

  • You can monitor your liquidity position on the Uniswap interface once added.
  • You can adjust your price range or add/remove liquidity based on market conditions.

Risks and Considerations​

  • Impermanent loss: When the price of the token pair diverges significantly, you might face impermanent loss.
  • Gas fees: High gas fees can impact profitability, especially with smaller amounts of capital.

MARK Arbitrum Staking​

You can earn more MARK rewards by staking your position on Uniswap; learn how in the guide for Staking for MARK Arbitrum.