Providing liquidity for the DPI:ETH pool on Uniswap is a great way to earn fees on the index you hold. There are a few avenues by which you can add liquidity to the pool, but for the purposes of this article, we will go over how to do so directly using Uniswap’s website or Zapper.fi. Zapper is ideal for users that do not currently own the DPI SetToken, but still want to earn trading fees.
2. Click on the top right button that says “Connect To Wallet” and select your wallet of choice. Make sure that your DPI SetToken and an equivalent amount in ETH is in that wallet. For the purposes of this guide, we will be using MetaMask, but all other wallets should follow a similar flow.
3. In the center box, switch the view from “Swap” to “Pool” and click “Add Liquidity.”
4. By default, the input asset will be ETH. We need to switch that to the DPI Index SetToken. You can do that by clicking on the dropdown arrow next to the asset name.
5. Once you do so, if this is your first time using Uniswap V2, you will be prompted to select a List from which you will be able to choose a token. This is a security measure.
6. Click on “1inch.”
7. From here you will see a list of tokens and a search bar on top. In the search bar, type in “DPI” and the index token will be the first result. Click “Select.”
8. Back on the “Pool” screen, select how much of the DPI Index SetToken you want to provide into the Uniswap pool. Once you enter your desired amount, Uniswap will automatically calculate the corresponding amount of ETH necessary to supply. Make sure you have that amount of ETH.
9. Click the “Approve DPI” button and confirm the transaction on the MetaMask popup.
10. Hit “Supply” and confirm the transaction on MetaMask. Then click “Confirm Supply” on the popup and confirm the MetaMask transaction.
11. You are done! You will continuously earn 0.3% of a portion of the transaction that goes through the pool until you remove your liquidity. You can monitor the Uniswap pool and fees earned using their dashboard here.
12. Whenever you go back to the “Pool” screen on the Uniswap app with the same wallet, you will see the option to add more to the pool or to remove your liquidity all together.
1. Navigate to https://zapper.fi/ and connect your preferred Web 3 wallet. For the purposes of this tutorial, we will be using MetaMask.
2. Select the “Invest” tab from the top left corner of the page.
3. In the search bar, enter “DPI” and you should see the DPI:ETH pool on Uniswap pop up.
4. Click “Add Liquidity.”
5. Zapper gives you the option of providing liquidity with whichever asset (DPI SetToken or ETH) that you would like. It automatically converts half of the selected asset to the other token and deposits that liquidity into the Uniswap pool. Do note that if you choose to supply the DPI SetToken, you will have to sacrifice half your exposure to the index as it will get converted to ETH. Likewise if you select ETH, you will get increased exposure to the DPI Index as half that ETH will get converted to the DPI token.
6. Once you have made the selection, hit “Confirm” and you are done! You will be able to manage and withdraw your liquidity all through the Zapper interface.