How-to

How to provide liquidity on Aerodrome

Providing liquidity on Aerodrome means depositing a pair of tokens into a pool on Base's main DEX to earn a share of the swap fees, and optionally staking the position for AERO rewards.

The steps

1. Fund a non-custodial wallet on Base. Set up a non-custodial wallet such as MetaMask or Coinbase Wallet, switch it to the Base network, and fund it with the two tokens you plan to deposit plus a little ETH on Base for gas. Bridge from Ethereum or send from an exchange that supports Base.
2. Choose a pool on Aerodrome. Open the Aerodrome app and pick a pool. Stable pools suit correlated pairs like two stablecoins and carry less impermanent loss; volatile pools pair assets that move apart and carry more. Check the pool fee and recent volume before committing.
3. Deposit the token pair. Enter the amount for each side of the pair, approve each token for the contract, then confirm the deposit. You receive an LP position representing your share of the pool, which earns a cut of the swap fees traders pay.
4. Stake the position for AERO rewards (optional). On Aerodrome you can stake the LP position in the pool gauge to earn AERO emissions on top of swap fees. This is optional and adds exposure to the AERO token price, which can fall.
5. Monitor, rebalance and withdraw. Track the position: with concentrated liquidity (Slipstream) you may need to rebalance the price range as the market moves. To exit, unstake if needed, withdraw the pair, and your assets return to your wallet, gains or losses included.

Doing it without the manual work

Managing a concentrated-liquidity range by hand means watching the price and rebalancing, which costs time and can add impermanent loss. Pool Party automates this on Base with self-custody, so you do not have to adjust ranges manually. Launch the app.

Keep learning

• Liquidity provision on Base (the ecosystem)
• How to reduce impermanent loss
• Impermanent loss explained