Your first position

What actually happens, in order, from opening the app to holding a position.

Before you start

You need a wallet connected to Robinhood Chain, some native currency for gas, and both tokens of the pair you intend to provide into. That last point catches people out: a position that straddles the current price holds both sides, so both are required.

If the pair includes wrapped ether, you can pay that side with native currency instead and the position manager will wrap it for you. That option is on by default when it applies.

Step one: choose a pool

The pool list is sorted by daily volume. What you are looking for is volume relative to depth: a pool with heavy trading and modest depth pays its providers well, and a pool with deep liquidity and no flow pays almost nothing regardless of how safe it looks.

Pools with very little depth carry a marker. They are not hidden, because sometimes that is exactly what you are looking for, but the return figure is withheld for them — see Fees and returns.

Step two: read the depth

The pool page shows liquidity at every price step. Tall bars mean a lot of capital is already positioned there and your share of any fees collected at that price will be correspondingly small. Thin regions mean the opposite, and usually mean the market does not expect the price to spend time there.

Step three: set the range

Drag the two handles, click on the chart to move the nearer one, use the arrow keys once a handle has focus, or type prices directly. All four write to the same underlying values, so they cannot disagree with each other.

Whatever you type snaps to a legal boundary and the field is rewritten with the snapped number, so what you see is always what will be used.

Step four: approve and mint

Each token that is not being paid natively needs an approval to the position manager first. Approvals are for the exact amount plus a small buffer, never unlimited.

Then the mint itself. Before your wallet opens, the transaction is simulated against the live chain. If the simulation fails, the wallet never opens and you are shown the reason instead.

Afterwards

The position token is minted to your address. It appears under Positions, along with any positions you opened on other interfaces. What you deposited is recorded so that profit against entry can be shown later.