> For the complete documentation index, see [llms.txt](https://kayen-finance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kayen-finance.gitbook.io/docs/kayen-finance-user-guide/dex/explore/pools/adding-liquidity-to-a-pool.md).

# Adding Liquidity to a Pool

“Adding liquidity” refers to the process of depositing tokens into a liquidity pool on a decentralized exchange (DEX) or platform.

By doing this, users (called liquidity providers) supply the pool with the necessary tokens that other traders can swap between.

For example, if you want to add liquidity to a BAR/CHZ pool, you deposit both BAR and CHZ in equal value. In return, you receive “liquidity provider tokens” (or “LP tokens”), which represent your share of the pool. You earn a portion of the transaction fees from trades made using the pool.

When you withdraw, you'll receive your initial tokens back, plus any fees you've earned.

## Prerequisite

In order to add liquidity you need to have these:

* A MetaMask wallet or any other Web3 wallet.
* CHZ on Chiliz Chain in your wallet for the gas fee.
* When adding liquidity to an existing pool, make sure you have two different assets.

## Step-by-Step Guide

{% stepper %}
{% step %}

### Connect to Kayen Finance

Go to <https://app.kayen.finance/> and make sure that your wallet is connected.\
If not, see [Connect](/docs/kayen-finance-user-guide/connect.md).
{% endstep %}

{% step %}

### Find the pool

In the Pools page, you can use the search form to find the pool to which you want to add liquidity. Type the ticker of one of the tokens in the pool to filter the list (for instance: PEPPER).

![](/files/58530e12b8433ccff8316e497f9393dc97d0adaf)

Once you find the liquidity pool, click on it to open its dedicated page.

Click the “Add liquidity” button.

![](/files/2a983ceb24a9b995cc3254f2c905f213cf03ef82)
{% endstep %}

{% step %}

### Choose amount and add liquidity

Determine the amount you want to add to the pool and click the “ADD LIQUIDITY” button.
{% endstep %}

{% step %}

### Set spending cap

Set a spending cap for your token. Spending cap should be more than the amount you plan to add to liquidity.
{% endstep %}

{% step %}

### Confirm adding liquidity

Continue by clicking “CONFIRM ADDING LIQUIDITY.”

{% hint style="info" %}
You can see the estimated gas price and slippage rate here.
{% endhint %}
{% endstep %}

{% step %}

### Confirm transaction

Click on Confirm.
{% endstep %}

{% step %}

### Transaction completed

Congrats! Your transaction has been completed.

After adding liquidity you can view your position on the same page.
{% endstep %}
{% endstepper %}