Adding & Withdrawing Liquidity

Only the LP NFT holder can add or withdraw liquidity from a pool.

Adding liquidity

Call addLiquidity(tokenAmount, usdcAmount) on the pool.

• Both underlying tokens and USDC must be provided
• Tokens are wrapped into airToken and airUsd
• backedAirToken and backedAirUsd increase
• The LP must approve both tokens before calling

TIP

Adding liquidity increases the pool's TVL and reduces price impact for traders. Larger pools attract more trading volume and fee revenue.

Withdrawing liquidity

Call withdrawLiquidity(tokenAmount, usdcAmount) on the pool.

• You can withdraw up to the current backed reserves
• Wrapper tokens are burned, real tokens returned to the LP
• backedAirToken and backedAirUsd decrease

WARNING

Withdrawing too much liquidity while positions are open can increase price impact and may affect position settlement. The reserve invariant (backed ≤ totalSupply) is always enforced.

Access control

Both operations check:

require(msg.sender == lpNftContract.ownerOf(lpNftId))

If you transfer your LP NFT, you immediately lose the ability to add or withdraw.