Remove Liquidity (How it works)
Last updated
Last updated
Liquidity removal on Enigma Swap allows users to withdraw their contributed assets from liquidity pools. When removing liquidity, Enigma users receive back their share of the pool's assets, including tokens and fees earned.
The process is straightforward: users select the liquidity pool they want to withdraw from, specify the amount of liquidity to remove, and confirm the transaction. Once completed, the withdrawn assets are transferred back to the Enigma user's wallet.
Similar to liquidity provision, liquidity removal may incur fees, which are distributed among liquidity providers in the pool. These fees compensate providers for their contribution and incentivize liquidity provision.
The primary benefit of liquidity removal is the ability for Enigma users to reclaim their assets from liquidity pools. Whether reallocating funds or exiting a pool entirely, liquidity removal provides flexibility and liquidity to users participating in decentralized exchanges.
