# LP PROVISION

**How to Provide Liquidity on Platforms like Raydium or Jup.ag to Earn Passive Income from Fees**

Providing liquidity (LP) on platforms like Raydium or Jup.ag is a great way to earn passive income from transaction fees. Here's a step-by-step guide to get started:

## 1. Connect your wallet to Raydium.io and choose Liquidity tab.

<figure><img src="/files/f7dXSl4tG9h3i7hkH4yg" alt=""><figcaption></figcaption></figure>

## 2. Input $AltCoin Contract Address and choose All tab to show all available pools in the Raydium Ecosystem.

<figure><img src="/files/YAz1rboH7wFiIYvzO9uC" alt=""><figcaption></figcaption></figure>

a) Here you can deposit your tokens and SOL into available pools and earn incomes from every transaction.

b) **For example Standard Pool** that is at the top of the table has **0.25%** fees. What means Raydium charges a 0.25% fee on all trades within a liquidity pool. Of this amount, <mark style="background-color:green;">**0.22%**</mark> is paid to LPs as a reward for providing liquidity and **0.03%** is used to market buy RAY and distribute to stakers.

c) **For the new CP-Swap (CPMM)**, the trading fee for each pool is set to one of four fee tiers; **4%, 2%, 1%,** and 0.25%. **Liquidity providers earn&#x20;**<mark style="background-color:green;">**84%**</mark> of the trading fee for every swap in the pool, while **12% of fees are allocated to RAY buybacks** and the final **4% to the treasury.**

**d) Concentrated liquidity (CLMM) pools**: The trading fee for each CLMM pool is set to one of eight fee tiers; 2%, 1%, 0.25%, 0.05%, 0.04%, 0.03%, 0.02%, and 0.01%. **Liquidity providers** earn <mark style="background-color:green;">**84%**</mark> of the trading fee for every swap in the pool, while **12%** of fees are allocated to RAY buybacks and the final 4% to the treasury.

## 3. How to create your own pool.

<figure><img src="/files/7q3kWQ0JgXFIZH82NQ1q" alt=""><figcaption></figcaption></figure>

<mark style="color:red;">**ATTENTION: Always use the correct contract address! Never rely solely on the ticker symbol, as many projects share the same ticker, which could lead to scams.**</mark>

a) Create a pair **SOL/ALTCOIN and choose custom fee.**&#x20;

<figure><img src="/files/jrfLYgs4gmHpeRo7VQm5" alt=""><figcaption></figcaption></figure>

b) Create a pair **OTHER TICKER/ALTCOIN** to gain more visibility within other ecosystems and communities for example **FARTCOIN/ALTCOIN** pair.

<figure><img src="/files/aD0Lw2SSgh3fIXOCVtDr" alt=""><figcaption></figcaption></figure>

c) After this, confirm your liquidity provision with your connected wallet and start earning passive income from fees.

Every decentralized exchange looks similar, so don't be afraid of making mistakes. For more questions, join our Telegram group at t.me/CTOAltCoin

## 4. Why is it important to create liquidity pools or provide liquidity to existing pools?

1\. **Stability to the Ecosystem**

2\. **Attracting More Investors Through Community Engagement**

3\. **Increased Exposure Through Pairing with Established Tokens**

4\. **Network Effects and Growth**

5\. **Building Trust and Confidence**

6\. **Passive Income**: Liquidity providers earn fees from trades, generating passive income.


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