Penumbra’s DEX is designed for privacy by default, with shielded liquidity positions and MEV-resistant pricing. Whether you’re holding UM or USDC in your Prax Wallet, here’s how to provide liquidity on the Penumbra DEX.

What You Need Before You Start

Prax Wallet connected
With balances of UM, USDC, or other assets

Why Provide Liquidity on Penumbra?

• Shielded by Default: Your positions are fully encrypted
• Custom Fee Tiers: Set your own LP fee preferences

Step-by-Step Guide on Providing Liquidity on Penumbra’s DEX

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1. Go to https://dex.penumbra.zone   

• Log in with your Prax Wallet, click Connect and Approve the connection request

• Navigate to the Trade or Provide Liquidity tab
  
  
  

• Click on the “Provide” tab to enter liquidity mode

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2. Review Route Book and Route Depth

• Review order book and available liquidity routes

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3. Define Your Trading Pair and Liquidity Parameters

• Set your trading pair. Example: UM/USDC
• Price Bounds: Set upper and lower bounds
• Order Type: Choose “Market” or define custom spread
• Fee Tier: Select a fee % (e.g., 0.1%) to earn on trades

4. Finalise and Submit Your Position

• Confirm the route (e.g., Direct or via 2 Hops)
• Double-check liquidity size, pair, and price range
  
  
• Click Approve to submit the position
  
  

• Under My Positions at the bottom left of the page, click the Position ID reference to inspect your liquidity position

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6. View Transaction Data

• Head to the Inspect tab
  
  
• See the Current Reserves, Sell Offer, Price details and Position Timeline

And voilà! You've successfully managed to provide liquidity on Penumbra’s DEX.