Some things to consider when adding liquidity to Wox-TRX liquidity pool

Good day, everyone! In this article, I will highlight some of the things we need to get set up when we are planning to provide liquidity in the WOX-TRX liquidity pool. I have read a lot of posts that explain the whole process of providing liquidity in the WOX-TRX pool. However, I have not come across a post that explains some of the main challenges that need to be highlighted. I faced some challenges when I was about to provide liquidity in the pool, but I am so glad that it has helped me to learn more in the process. I know many people may have similar experiences as I did, and I hope they will find this hopeful.

_{Image from , and edited with Logo App}

What I experienced in my first attempt to add liquidity to the Wox-Trx Liquidity pool

---

When I was about to start the whole process, I had a total of 280TRX in my Tronlink wallet, along with 50 Wox tokens. I already learnt that you have to acquire enough energy and bandwidth to be able to provide the liquidity, so I decided to freeze about 140TRX so that I would have enough energy for the swap. I thought I was readily setup for the process. I followed the process to complete the provision of liquidity. Unfortunately, the transaction was not confirmed, and when I checked on Tronscan, it appeared that I was out of energy. By then, the energy I already had was consumed, so I had to wait until it was filled. I checked the next day and it was fully filled. I did more research about the process, and I was able to provide the liquidity, although I had to add more TRX to my wallet.

From what I learnt, the following things should be considered before you can successfully provide liquidity in the Wox TRX liquidity pool.

---

✔✔ Freeze some TRX for energy: This is necessary because, if you fail to freeze/stake some of your TRX holdings for energy, some of your liquid TRX will have to be burnt in order to cater for the energy, and if you do not have enough Trx, the transaction will not be initiated. Hence, you have to acquire enough energy to be able to carry on the transaction with ease. For instance, in the screenshot I have shown below, the energy consumed for the liquidity of 50 WOX was 150,140. The user's energy was not enough; hence, about 42 TRX was burned for the transaction. Assuming the person did not have some TRX, the transaction wouldn't have been triggered.

_{Screenshot from Tronscan}

✔✔ For a successful transaction, you have to hold an equivalent amount of both TRX and Wox tokens. This may sound strange, but it is good to know that when you are to provide liquidity, you need to have an equivalent number of holdings in both of the tokens. If you want to provide 10 wox of liquidity, you should have 10 wox and 45TRX wox in your wallet for the transaction to be triggered.TRX acts as collateral in the liquidity pool. For instance, in the screenshot below, the person providing liquidity for 50Wox has 227.4366 TRX. If you don't have an equivalent amount of TRX locked up, you can't provide liquidity.

_{Screenshot from Tronscan}

✔✔ Reserve some TRX so that, if there is going to be any fee, it will cater for it, or if the energy is not sufficient, that amount of TRX can be burnt for the transaction. If you are to add the liquidity, it indicates that

70 TRX are required to pay the fee when adding liquidity, Please make sure that, you have sufficient TRX balance.

Although not all the time, it will consume up to 70 TRX, but you have to reserve enough TRX just in case there is a need to. For instance, in the transaction i have indicated, it wouldn't have been initiated if the person had not had an extra 42 TRX to be burnt for energy.

I hope you found this useful. If there are any mistakes, please don't hesitate to correct me in the comment section. I am still learning. Thank you for your time.