Best Way to Explain How to Add or Remove Liquidity Binance Farming

Binance Liquidity Farming is a liquidity pool developed based on the AMM (Automatic Market Maker) principle. Just like any other DeFi swap, it consists of different liquidity pools, and each liquidity pool contains two digital tokens. but how to add or remove liquidity on binance farming? investors might ask, well let dive in for better understanding of all.

How do I Add or Remove Liquidity on binance?

When adding liquidity, you can:

• Add two tokens: The system will automatically display the amount of tokens to add according to the current pool size.
• Add a single token: The system will swap the token you added into the other token of your chosen pair based on the current portion composition ratio in the pool. Transaction fees will incur during the conversion, and large transactions may cause higher slippage and loss.

When removing liquidity, you can:

• Remove two tokens: The system will allocate the two tokens back to your Spot Wallet according to the pool portion and portion composition.
• Remove single token: The system will swap the token you choose to redeem into the other token based on the current portion composition ratio in the pool. Transaction fees will incur during the swap, and large transactions may cause higher slippage and loss. When the slippage is too high, the system will send an alert on the page.

Slippage and the loss of slippage:

Slippage refers to the spreads between the actual trading price and the price when placing the order.

You can set the slippage tolerance of transactions on the [Liquidity Farming] page. You can only swap when the slippage is within the set range.
When a single token is added or redeemed in large amounts, slippage may also incur and affect the value of the portion. In this case, the system will send investor an alert before confirming the swap.