> For the complete documentation index, see [llms.txt](https://stablecoin-reference.gitbook.io/stablecoin-reference-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://stablecoin-reference.gitbook.io/stablecoin-reference-docs/what-happens-when-you-add-liquidity-to-a-solana-pool.md).

# What Happens When You Add Liquidity to a Solana Pool?

Start with a small amount you can leave in the pool, and choose a price range you can monitor. Your wallet sends tokens into a pool that supports trades between them. In return, you may earn part of its trading fees while your position is active, but its token mix can change as prices move.

### What do you put in, and what does your wallet approve?

You deposit a pair of tokens, such as SOL and USDC, into a pool. A liquidity provider, or LP, supplies tokens so other people can swap them; concentrated liquidity means choosing the price range where your tokens will be used.

Before you commit, check the token pair, pool fee tier, and price range. [Byreal liquidity pools](https://uruguaycan.com/byreal-on-solana-swaps-lp-fees-and-outcome-markets/) use chosen price bands, so your range helps decide when your tokens are available for swaps. On Byreal, the interface shows the amounts needed for your selected range; keep some SOL in your wallet for network fees.

Review the deposit amounts and any displayed slippage limit. Slippage means the amounts may shift between the quote and the transaction; if they move beyond your limit, the deposit can fail. Your wallet then asks you to approve the transaction, which moves tokens into the pool and creates a position you can later manage.

### What changes after your deposit?

Your position earns trading fees only while the market price is inside its range. Each swap uses some of the available tokens, and the pool adjusts your balance between the pair as traders buy or sell.

For example, say SOL is $150 and you select a range from $135 to $165 for SOL-USDC. While SOL stays in that band, your tokens can support swaps and earn a share of fees. If SOL rises above $165, the position may end up mostly or entirely in USDC; below $135, it may end up mostly or entirely in SOL.

A position that starts outside its chosen range can also be one-sided. If the price is already above the range, for example, the deposit may use USDC alone. Check the displayed token amounts before signing, especially if you expected to deposit both tokens.

### How do fees compare with simply holding the tokens?

Fees are a possible return, not a promised yield. Your share depends on swaps through the pool, the pool’s fee tier, and how much active liquidity other providers have there. A narrow range can give your position a larger share of fees while it is active, but the price can leave that range sooner.

Compare your position with what the same tokens would be worth in your wallet. Say you deposit 2 SOL and $300 USDC when SOL is $150. If SOL rises, traders buying SOL from the pool leave your position with less SOL and more USDC than you would have by holding both tokens. The difference is often called impermanent loss; fees may offset it, but might not.

On Byreal, liquidity provision on an existing pool has no additional platform fee, but Solana network fees still apply. A typical network fee is about 0.00001–0.00002 SOL, while priority fees vary. Creating the position can also require refundable account rent, typically a few thousandths of SOL; unusual pool setup costs may add more.

### How do you check or remove the position?

After the transaction confirms, check the position’s price range, token balance, and fees earned. A position record, often represented by a position NFT, acts like a receipt for your claim on the pool; it is different from a normal token balance you can swap.

If you want to exit, choose the position and remove some or all of its liquidity. The pool returns the tokens in their current proportions, along with any fees the interface lets you collect. A closing transaction also costs SOL, and withdrawing makes any difference from simply holding the tokens final.

My practical tip: start with a range wide enough that you can check it occasionally, then compare the position’s current token amounts with your original deposit before adding more.