Originally published 29th January 2025

Before you begin, it's helpful to understand some basic concepts:

Liquidity Pool: A collection of tokens locked in a smart contract that enables users to trade tokens directly, without needing a buyer and seller to match.

BREAD: The primary token of Breadchain, our community currency that’s at the heart of what we are doing. You can refresh your memory on the significance and processes behind baking BREAD here.

WxDAI: "Wrapped xDAI" - a version of xDAI (the native token of Gnosis Chain) that can interact with smart contracts more easily.

Adding liquidity to Breadchain serves some important functions:

Community Support: You help other users easily swap in and out of BREAD without using the Crowdstaking Application, i.e. swaps to other assets without burning BREAD. As a liquidity provider, you can earn transaction fees for swaps that occur in this pool (i.e., you make money by providing liquidity).

Future Integration: You're supporting Breadchain's integration with Gnosis Pay, which will enable everyday purchases with BREAD.

Governance Rights: By providing liquidity, you receive LP tokens that can be used in addition to your BREAD to accumulate voting power. More voting power means a greater say in the distribution of funds to post-capitalist initiatives. Make sure you lock your tokens in the Liquidity Pool Vault to get this additional voting power.

These functions play a key role in the Breadchain Solidarity Primitive.

The Breadchain Liquidity Pool makes it easier for people to swap BREAD for other tokens without the need to burn their BREAD. This additional flexibility will be a huge boost towards reaching new users and sustaining the ecosystem. Curve’s Stableswap bonding curve also prioritises efficiency in token swaps, enabling access at a tight price range.

Expected Fees: You'll need to pay gas fees on Gnosis Chain for:

• Approving token spending (one-time per token)

• Depositing tokens into the pool

• Gas fees on Gnosis Chain are typically very low (less than $0.01)

Time: The entire process usually takes 3-5 minutes, not counting time to acquire tokens.

1. Prepare Your Wallet

Before starting, ensure you have:

• A Web3 wallet connected to Gnosis Chain

• Both BREAD and WXDAI tokens.

• A small amount of xDAI for gas fees

Need BREAD? Follow our minting tutorial first

Need WXDAI? Convert your xDAI to WXDAI on CoW Swap

2. Access the Liquidity Pool

• Visit the Bread Crowdstaking Application

• Look for the "Add Liquidity" banner below the baking module

• Click to be taken to the Curve Finance interface

3. Add Your Liquidity

• Connect your wallet through Gnosis Chain

• Enter the amounts you wish to provide

You can provide relatively equal values of both tokens, the interface will help you balance the amounts.

• Click "Approve" for each token (first-time only)

• Once approved, click "Deposit"

• Confirm the transaction in your wallet

Congratulations, you have successfully contributed to the BREAD/WxDAI liquidity pool! Your LP tokens not only earn you in BREAD swaps made through the pool but also grant you additional voting power, but these tokens need to be locked in the LP Vault in order for you to get these benefits. How do you do this? We’ve got you covered in the next section.

1. Head over to the LP Vaults page. You can find it in the BREAD Crowdstaking app, under the “Governance” section, right next to the “Vote” sub-section.

2. Connect your wallet to check your voting power across $BREAD and the locked LP tokens.

3. Once you connect your wallet, you’ll get a window detailing your voting power. It will look something like the image below. Take a note of the number in pink, showing available tokens but they’re not granting voting power.

4. Scroll down to “manage your BREAD LP vaults” and click the arrow at the right of your screen. You’ll see the following option to lock and unlock your LP tokens. Click “max” because it’s not likely you’ll have a use for these tokens beyond the voting power. Click the pink “lock” button.

5. Confirm the token lock, and sign the transaction in your wallet.

6. Wait for the transaction to go through, and you’re all done! Go back to step 3 to confirm that your LP tokens are giving you the specified voting power, and you’re good to go!

You can unlock your tokens at any time, but please note you can only unlock your entire vault. You can always return LP tokens to the vault by following these steps again.

Congratulations! You are now taking an active role in the growth and success of post-capitalist initiatives with Breadchain!

Common issues and solutions:

Transaction Failing

• Ensure you have enough xDAI for gas

• Try refreshing the page

• Make sure you've approved both tokens

Can't See Your Tokens?

• Verify you're connected to Gnosis Chain

• Check that you've imported the token addresses

Approval Never Completes

• Try resetting your wallet's connection

• Ensure you have enough gas

If you’re looking for another way to support post-capitalist projects, you can do so by giving to our Open Collective or purchasing the NFT associated with this piece. The CryptoLeftists Discord is our home base for discussion and announcements, and make sure you visit the Breadchain Guild to open up access to all parts of our server.

If you would like a look under the hood or contribute towards development of the ecosystem, you can check out our Github page. If you’re working on something that you think fits with the ethos of Breadchain, apply to have your project become a part of the network.