> For the complete documentation index, see [llms.txt](https://docs.common.fi/knowledge-base/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.common.fi/knowledge-base/legacy-info/dex-and-bridge/pool/explaining-liquidity-pools.md).

# Explaining Liquidity Pools

### Before starting:

* You will need to make an account.
* Next, add funds to your account. 
* Key Terms:  **Liquidity Pool (LP) Tokens** represent your share of the pool’s total liquidity. Holding these tokens entitles you to a share of the trading fees generated by the pool. Obtaining it involves depositing liquidity (tokens A and B) into the pool. When you withdraw from the pool, you receive tokens A and B based on the quantity of LP tokens you return and the current token ratio in the pool.

### Overview: 

1. Click the "Pools" tab to see the list of available pairs.

<figure><img src="/files/2HqUXrMHHXU4hFcvuMAI" alt=""><figcaption></figcaption></figure>

2. For this example, we will use the FIR/PAP trading pair. On this page you will see the total value of the pool and of the two assets found in the pool. To add liquidity, click the "Add Liquidity" button on the right.

<figure><img src="/files/isG4g5fe1Xbt1VlACl0w" alt=""><figcaption></figcaption></figure>

3. A pop-up window will appear that will allow you to choose with the slider how much of your asset to add. You will also see the network fee below. Click "Add liquidity" to proceed.

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

4. A new window will appear, prompting you to sign the transaction. Please note, that this will look differently for everyone based on what extension they are using.

<figure><img src="/files/0nesc5gT44he39Vt2KGZ" alt=""><figcaption></figcaption></figure>

5. After the transaction is completed you will be able to see to the right your pool balance. If you wish to withdraw your assets you will be able to do so through the "Withdraw" button.

<figure><img src="/files/o3SmK3atr7hMp6t9tlHT" alt=""><figcaption></figcaption></figure>

Congratulations! You have now successfully added liquidity to Common!&#x20;

To learn more about the Common web app, be sure to check our other guides on:&#x20;

* [Bridging](/knowledge-base/legacy-info/dex-and-bridge/bridge/how-to-bridge-with-most.md)
* [Farming](/knowledge-base/legacy-info/dex-and-bridge/farm/how-to-farm.md)
* [Checking Your Account Balance](/knowledge-base/legacy-info/dex-and-bridge/account/how-to-check-your-balance.md)
* [Connecting Your Wallet](/knowledge-base/legacy-info/dex-and-bridge/account/how-to-connect-your-wallet.md)
* [Swapping Coins](/knowledge-base/legacy-info/dex-and-bridge/swap/how-to-swap-tokens.md)