# Liquidity Provider

## Becoming a BTSG Liquidity Provider

### Why become a BTSG Liquidity Provider?

BTSG liquidity providers play a crucial role in ensuring a continuous supply of liquidity for BTSG on decentralized exchanges. In return for depositing into BTSG pools, liquidity providers earn a share of transaction fees paid by traders who use the pool to swap BTSG tokens.

### Provide liquidity to BTSG Pools on Osmosis

These instructions are for mainnet-BTSG tokens.

To add liquidity to BTSG pools on Osmosis you’ll need to have installed the Keplr wallet. You’ll also need to have a balance of the equivalent pairs for which you want to add liquidity, e.g. BTSG and ATOM.

Go to the [“Pools” section on the Osmosis app.](https://app.osmosis.zone/pools) Scroll down until you find the BTSG pools numbered , and select “Add/Remove Liquidity.” Input the BTSG you want to add, and your other token balance will be calculated automatically. Click the “Add Liquidity” button and when prompted, approve the transaction in your Keplr wallet. You will receive LP tokens to represent your staked liquidity.

A short guide can also be found [**here**](https://docs.bitsong.io/useful-guides/how-to-add-usdbtsg-liquidity-in-osmosis-pools).

When you wish to withdraw your tokens, navigate back to the Pools section on Osmosis with your Keplr wallet connected, and you can use the “Add/Remove Liquidity” option to redeem LP tokens.

### Risks of liquidity pools

Becoming a liquidity provider comes with a certain amount of risk. Cryptocurrencies are volatile assets and when prices for tokens in a pool diverge, the liquidity provider may incur impermanent loss.

Decentralized finance protocols can also be subject to other risks, such as smart contract risk. Please ensure you research and understand these risks before depositing your funds into a liquidity pool.


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