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How to Become a vXAI Liquidity Provider

1. Introduction 🚀​

vXAI is the core token of our project ecosystem, carrying a long-term vision of integrating blockchain and artificial intelligence. By providing liquidity for vXAI alongside other assets (e.g., SOL), you can earn trading fee rewards and actively support the growth of the vXAI community and ecosystem.

Risk Notice ⚠️

  • Cryptocurrencies are highly volatile. Only invest what you can afford to lose.
  • Liquidity provision involves impermanent loss, smart contract risks, and other potential issues.
  • This guide is for reference purposes only and does not constitute investment advice.

2. Why Become a Liquidity Provider for vXAI? 💡​

  1. Earn Trading Fees
    Whenever other users swap between vXAI and SOL on a decentralized exchange (DEX), a portion of the trading fees is distributed to all liquidity providers based on their share of the pool.

  2. Support the vXAI Ecosystem
    The more liquidity there is, the lower the slippage and the better the trading experience, which helps strengthen vXAI’s market influence and recognition.

  3. Long-Term Value Potential
    By focusing on the convergence of blockchain and AI, vXAI holds exciting prospects. Holding and supporting vXAI may let you share in the project’s future successes.

3. Pre-Preparation 📝​

  1. Register & Log in to a Centralized Exchange (CEX)

    • You can choose from well-known exchanges such as Binance, Gate.IO, or OKX, and complete any required KYC procedures.

  2. Prepare Your Funds

    • Purchase or deposit USDT/USDC to exchange for SOL, or hold SOL directly.
    • Be aware of withdrawal fees and minimum limits on your chosen CEX.

  3. Install & Configure Phantom Wallet

    • Download Phantom Wallet from its official source (browser extension or mobile app).
    • Securely back up your seed phrase (mnemonic) and never share it.
    • Create or import your address and keep a record of it in a safe place.

4. Purchasing & Transferring SOL 💰​

  1. Buy SOL with USDT/USDC

    • Log in to your CEX account.
    • Find the “SOL/USDT” or “SOL/USDC” trading pair.
    • Enter the amount you’d like to purchase and place your order.

  2. Withdraw SOL to Your Phantom Wallet

    • On the CEX, go to your “Assets” or “Wallet” page and select “Withdraw.”
    • Choose Solana as the withdrawal network, enter your Phantom Wallet address, and specify the amount.
    • Double-check the address and network before confirming the withdrawal request. Wait for the funds to arrive in Phantom.

Tip đź’ˇ: Always select the correct Solana network and carefully confirm the address to avoid any loss of funds.

5. Buying vXAI & Adding Liquidity 🤝​

Below is an example using Raydium. Other Solana-based DEXs have similar steps.

5.1 Buy vXAI​

  1. Go to Raydium Swap (this link is set to the vXAI contract).
  2. Connect your Phantom Wallet.
  3. On the Swap page:
    • Select SOL as the input token.
    • vXAI will automatically be chosen as the output token (thanks to the custom link).
  4. Enter the amount of SOL you wish to swap, then confirm.
  5. When your wallet prompts for approval, click Approve.
  6. After the transaction completes, you’ll see your vXAI balance in Phantom.

5.2 Provide Liquidity (LP)​

  1. Visit the Add Liquidity page (example Pool ID).
  2. Connect your Phantom Wallet.
  3. Select SOL and vXAI as the two tokens.
  4. Input how much you want to add. The DEX will automatically calculate the required amount of both tokens.
  5. Review the Price Impact and Pool Share.
  6. Approve the transaction in your wallet.
  7. Once done, you’ll receive LP Tokens, representing your share in the vXAI-SOL liquidity pool.

Note ✨: If you encounter errors like “Insufficient balance” or “Slippage too low,” try adjusting your slippage settings or wait for lower network congestion. If you’re new, start with a small test transaction first.

6. How to View & Manage Your Liquidity 📊​

  1. Check Your LP Tokens

    • On Raydium’s homepage or in the “Liquidity” section, you can see the amount of LP Tokens you hold.
    • These LP Tokens entitle you to a share of the trading fees.

  2. Fee Rewards

    • Each swap between vXAI and SOL generates trading fees, which are distributed among all LP holders proportionally.
    • Some platforms may also offer additional incentives or farming rewards.

  3. Removing Liquidity

    • If you wish to remove your liquidity, select “Remove Liquidity” on the liquidity management page.
    • Your LP Tokens will be converted back into vXAI and SOL based on the current market price.
    • Keep in mind price changes can lead to impermanent loss.

7. FAQ ❓​

  1. Why Should I Pay Attention to Impermanent Loss?

    • Significant price shifts between vXAI and SOL can cause your final asset value to be lower than if you had only held one asset.
    • Trading fees can offset some of these losses, but market volatility remains a key factor.

  2. Why Might My Transaction Fail or Stay Pending?

    • Network congestion, insufficient gas (SOL) for transaction fees, or a low slippage setting are common reasons.
    • Try increasing slippage or wait for network conditions to improve.

  3. What Are the Benefits of Holding LP Tokens?

    • LP Tokens let you continuously earn a share of trading fees and may grant you extra rewards such as yield farming or project governance rights.

  4. How Can I Ensure the Safety of My Funds?

    • Only download Phantom Wallet from its official site.
    • Keep your seed phrase secure, never share it with anyone.
    • Stay vigilant against phishing websites and scams.

  5. Are There Additional Perks from the vXAI Team?

    • We’re always exploring ways to offer more incentives to our liquidity providers, including community events, staking rewards, and ecosystem privileges. Stay tuned to our official announcements.

8. Conclusion & Encouragement 💫​

Providing liquidity for vXAI is a great way to support our project’s ecosystem while potentially earning additional returns from trading fees. By following the steps outlined above—purchasing SOL, swapping for vXAI, and adding liquidity—you’ll become a valued member of our community. We are committed to expanding the vXAI ecosystem and unlocking more use cases, so all supporters can benefit from vXAI’s growth and potential.

Disclaimer 🛡️: This content is intended only as a reference and does not constitute financial advice. Cryptocurrency investments involve high risks and volatility. Always Do Your Own Research (DYOR) and invest responsibly.

Thank you for your trust and support of vXAI!
If you have any questions about the process or the project, feel free to join our official community or contact our support team. Let’s work together to build a thriving vXAI ecosystem! 🤝