💧Liquidity

On Zolidly, liquidity providers supply liquidity to pools and receive LP tokens as a reward. If you stake your LP tokens to the Gauge, you can receive ZOLID tokens as a reward. The amount of ZOLID tokens you can obtain increases as the pool votes of veZOLID holders increase.

DEXs with no counterparty rely heavily on liquidity. This is because slippage occurs since AMM is used instead of an order book, and the pool must have enough liquidity to trade with minimal slippage. Typically, DEXs like Uniswap pay a significant amount of swap transaction fees to liquidity providers. However, Zolidly does not pay transaction fees to liquidity providers as described in Fee. Instead, all transaction fees are paid to veZOLID holders. Liquidity providers can stake their LP tokens to the Gauge and acquire ZOLID tokens distributed to the Gauge as a reward. By doing so, liquidity providers can unlock market volatility and generate revenue through the ZOLID token.