Note: Since depositing is an Ethereum layer-1 transaction, meaning it moves from L1 to L2, this costs gas. It is approximately just the gas cost of a normal token transfer. Pay this gas cost once, and then you are on L2 with those assets, living gas-free for as long as you’d like.
Note: Transfers are currently free on Loopring unless the transfer is to a ‘new’ account that has never interacted on L2. Only in this case is there a small flat fee of a few cents to cover the account activation cost. Eventually, there will be a very small flat fee of a few cents for all transfers.
Note: being an LP is not risk free. You face the potential risk of ‘impermanent loss’ just like with most other AMMs.
Note: There are also rewards for traders! Users with high swap volume in a given pool are rewarded. Click ‘AMM Swap Tournament’ to learn which pools are being incentivized and with how much in rewards. This also changes in 14-day cycles.
Note: This amount you are removing includes any fees you have earned throughout your time providing liquidity. LP fees (0.15%) automatically accrue to the pool every time someone swaps with that pool. This enlarges the pool for all LPs, so when you remove your liquidity, you are taking your share of the fees with you.
Note, in addition to maker rebates, there is also often liquidity mining for orderbook pairs! This incentivizes users (especially market makers or algorithmic traders) to place tight resting limit orders on the books, and receive rewards for providing that liquidity (being a maker) for others to take. Learn more about how orderbook liquidity mining works here. If you want to plug into the orderbooks to trade or MM programatically, here is the API. You may also want to plug into an existing market making software that is connected to Loopring Exchange, such as Hummingbot!