Dawn Tutorials: How to Add Liquidity on Uniswap
Updated: Apr 9, 2021
Greetings Dawners! We are back with another tutorial. Since launch, we have worked hard to bring our token holders a variety of liquidity options and exchanges to buy and sell their Dawn tokens. We believe that the more accessible Dawn is, the more traction we can gain. With that, we have launched Dawn on Uniswap so that users can buy, sell, or provide liquidity in a decentralized manner. Uniswap is quickly becoming one of the most popular apps for trading cryptocurrencies on the Ethereum blockchain, so we hope you’re as excited about this as we are!
Providing liquidity in Uniswap allows the community to essentially stake their Ethereum and Dawn and earn network fees on transactions made on the platform. Users who provide liquidity are entitled to a shared 0.3% of transactions between the entire pool.
“Uniswap incentivizes users to add liquidity to pools by rewarding providers with fees on trades. Market making” -Uniswap Documentation
What is Uniswap?
Uniswap is a decentralized exchange consisting of two smart contracts hosted on the Ethereum blockchain, coupled with an open-sourced client available to the public. All liquidity is completely on chain, allowing users to swap ERC tokens, as well as Ethereum to an ERC token, and ERC tokens to Ethereum.
Additionally, users can contribute to liquidity pools for any available token and earn rewards in the form of exchange fees for participating in the process. It is a great option for anyone looking to earn rewards for holding their tokens, and it’s entirely trustless, so you can essentially “stake” your Dawn to the market and earn generous rewards for contributing to the ecosystem. What’s not to love?
To learn more about Uniswap, head over to their documentation page.
Disclaimer, there is risk in providing liquidity to Uniswap. To learn about impermanent loss and exchange fees, visit the "Understanding Returns" page.
Getting started is easy! First, you will need to download a compatible wallet. We recommend either using MetaMask or a WalletConnect wallet to store your Dawn and Ethereum. Once you have set up your wallet, please move your Dawn and/or Ethereum to your wallet before you get started.
If you need help setting up your wallet, please reach out to us on Telegram.
How Add Liquidity on Uniswap
Once you have your wallet setup, you’ve already done most of the work! Just head over to Uniswap to get started. You can find the link here.
Once the interface loads, you are ready to get started. For this tutorial, we will show you how to add liquidity to Dawn using Ethereum using MetaMask; additionally, you can buy Dawn with a large variety of other Ethereum-based tokens and wallets, so feel free to get creative!
Unlock your MetaMask wallet by entering your password. Once you have, click “Connect Wallet” and give Uniswap permission to interact with your wallet.
From the Uniswap App, click on “Pool” to visit the liquidity Dapp, and click “Add Liquidity.”
Uniswap uses Ethereum by default in the main input field. While Dawn is listed on Uniswap, in order to add Dawn liquidity, you will need to enter the contract address, or click this link. Please note: it is imperative that you enter the correct contract address into Uniswap. There are fake contracts that are designed to steal your Ethereum. Please double check the contract address.
In order to do this, simply input the Dawn Contract Address into the search box.
Dawn Contract Address: 0x580c8520deda0a441522aeae0f9f7a5f29629afa
Once you enter the address, you will see Dawn token populate onto your screen.
Add it to Uniswap and then click on our logo to select it for swapping.
Once you select Dawn, you will be brought back to the main screen. Now, you will enter the amount of liquidity that you wish to provide. You must provide an equal USD value of Ethereum and Dawn. It is automatically calculated for you by filling out one of the fields, either ETH or Dawn. Once you have decided on an amount, you are ready to connect your wallet. Proceed by clicking “Connect Wallet.”
When you are ready, click Supply.
Uniswap will now give you an overview of the transaction, including the number of Dawn/ETH Pool Tokens you will receive in return. These tokens are your stake in the liquidity pool, and give you a right to claim back liquidity from the pool, plus a shared 0.3% in rewards in the form of exchange fees. After you have reviewed the transaction, click “Confirm Supply” and allow MetaMask to complete the transaction.
Please once again confirm the details of the swap. If everything is correct, click on “Confirm Swap” to continue.
After you confirm, Uniswap will begin the transaction. You will have to confirm the transaction and fees in MetaMask, which will automatically populate on your screen. Simply follow the prompts, review the information, and click “Confirm” for any remaining prompts. Once completed, you will receive your Dawn/ETH Liquidity Pool Tokens in your wallet.
How to remove liquidity from Uniswap
So, you’re ready to remove liquidity from Uniswap and receive back your share of the pool? No problem. Claiming your liquidity is a cinch. Simply visit https://app.uniswap.org/#/pool to manage your liquidity. If you do not see your DAWN/ETH liquidity, click “Import” liquidity and enter the Dawn contract address into the text field. Once you have added the pool, click “Remove.”
From here, use the slider to select how much liquidity you would like to remove, and click “Approve” to start the transaction. Approve the transaction within MetaMask, and your liquidity will be returned to you after confirmation on the Ethereum network.
You did it! You can look forward to more tutorials in the future as we continue to build and develop new features on the Dawn and FirstBlood Platforms. Have you joined our Telegram? Be sure to join the conversation at t.me/dawnprotocol. Happy swapping!