Adding liquidity to decentralized finance (DeFi) protocols has become a powerful way for crypto holders to generate yield. With pSTAKE now available on Base Chain, users can leverage Ethereum Layer-2 benefits—lower fees and faster transactions—while participating in DeFi opportunities through platforms like Aerodrome Finance.
This comprehensive guide walks you through the entire process of adding PSTAKE/USDC liquidity on Aerodrome Finance using Base Chain, covering both concentrated liquidity (CL200) and volatile AMM (vAMM) pools. Whether you're new to liquidity provision or refining your DeFi strategy, this step-by-step walkthrough ensures clarity and confidence.
Why Add PSTAKE Liquidity on Base via Aerodrome?
Before diving into the steps, it’s important to understand why this setup is valuable:
- Low-Cost Transactions: Base Chain, an Ethereum Layer-2, drastically reduces gas fees.
- Capital Efficiency: Aerodrome uses Uniswap V3-inspired concentrated liquidity models, allowing LPs to earn higher fee yields within custom price ranges.
- Yield Generation: By providing liquidity, you earn trading fees and potentially additional staking rewards.
- Interoperability: pSTAKE enables liquid staking across chains, and now includes Base Chain support.
Core keywords: PSTAKE, Aerodrome, Base Chain, liquidity pool, add liquidity, USDC, DeFi, CL200
Prerequisites: Prepare Your Assets on Base Chain
To begin, ensure you have the following:
- A Web3 Wallet (e.g., MetaMask) connected to the Base network.
- PSTAKE tokens on Base Chain.
- USDC on Base Chain.
👉 Get started with low-fee transactions and explore DeFi opportunities today.
If your PSTAKE is currently on Ethereum Mainnet, you’ll need to bridge it to Base Chain. Use trusted cross-chain bridges that support token transfers between Ethereum and Base. Once bridged, confirm both PSTAKE and USDC are visible in your wallet on the Base network.
Step 1: Connect Your Wallet to Aerodrome Finance
Navigate to the official Aerodrome Finance platform:
- Go to aerodrome.finance (do not click external links).
- Click “Connect” in the top-right corner.
- Select your wallet provider (e.g., MetaMask via “Browser Wallet”).
- Approve the connection request in your wallet.
Your wallet is now linked to Aerodrome Finance on Base Chain.
How to Add Liquidity to the CL200-PSTAKE/USDC Pool
The CL200-PSTAKE/USDC pool uses concentrated liquidity, a capital-efficient model derived from Uniswap V3. This allows liquidity providers (LPs) to define a custom price range where their assets will be used for trades—maximizing fee earnings when prices stay within that range.
Step 1: Navigate to the Liquidity Pool
- From the Aerodrome dashboard, go to “Liquidity”.
- Search for PSTAKE in the pool list.
- Select the CL200-PSTAKE/USDC pool.
- Click “New Deposit”.
You’ll be taken to the deposit interface.
Step 2: Set Price Range and Deposit Amount
Box A – Price Range: Adjust the price range (in USDC) for PSTAKE within which your liquidity will be active.
- The default uses ±2% tick ranges, but you can customize this based on market volatility expectations.
- Box B – Deposit Amount: Enter either the amount of PSTAKE or USDC you want to deposit; the other field auto-fills based on current market price.
💡 Tip: Narrow ranges increase capital efficiency but carry higher impermanent loss risk if prices move outside the range.
Step 3: Approve Token Spending
Before depositing, you must grant Aerodrome permission to use your tokens:
- Click “Allow PSTAKE”.
- Confirm the transaction in your wallet.
- Repeat for USDC by clicking “Allow USDC” and confirming.
These are one-time approvals per token unless you revoke them later.
Step 4: Deposit and Stake Your Liquidity
Once approvals are confirmed:
- Click “Deposit”.
- Confirm the transaction in your wallet.
After confirmation, you’ll see your position listed under your liquidity dashboard.
To start earning staking rewards:
- Click “Stake Deposit”.
- Approve access to your deposit.
- Confirm the staking transaction.
Now, your liquidity is actively earning fees and rewards.
How to Add Liquidity to the vAMM-PSTAKE/USDC Pool
For users who prefer simplicity over precision, the vAMM-PSTAKE/USDC pool offers a traditional automated market maker (AMM) model—no price range selection required.
This pool is ideal for beginners or those who want passive participation without managing range positions.
Step 1: Select the vAMM Pool
From the same Liquidity section:
- Search for vAMM-PSTAKE/USDC.
- Click “New Deposit”.
Step 2: Deposit Tokens
- Enter the amount of PSTAKE or USDC you wish to provide.
- The second token amount will auto-populate at the current market rate.
- Approve spending for both PSTAKE and USDC, just as before.
- Click “Deposit” and confirm in your wallet.
Just like with CL200, remember to stake your deposit afterward to qualify for additional rewards.
👉 Discover how easy it is to participate in high-yield DeFi pools with fast settlements.
Understanding Concentrated vs Volatile Pools
| Feature | CL200 (Concentrated) | vAMM (Volatile) |
|---|---|---|
| Price Range Management | Required | Not needed |
| Capital Efficiency | High | Moderate |
| Impermanent Loss Risk | Higher if price exits range | Spread evenly |
| Best For | Active LPs, experienced users | Passive investors |
Choose CL200 if you’re comfortable monitoring price movements and adjusting ranges. Opt for vAMM if you want a set-and-forget approach.
Frequently Asked Questions (FAQ)
Q: What is pSTAKE?
A: pSTAKE is a multichain liquid staking protocol that allows users to stake assets like ATOM and receive stkTokens—liquid representations that can be used across DeFi protocols to earn yield.
Q: Do I need equal amounts of PSTAKE and USDC?
A: No. When you enter one amount, the system automatically calculates the equivalent value of the other token based on current prices.
Q: What is impermanent loss?
A: It’s the temporary loss LPs experience when token prices change after depositing into a liquidity pool. It’s more pronounced in volatile pairs and concentrated pools with narrow ranges.
Q: Can I withdraw my liquidity at any time?
A: Yes. You can remove your position anytime from the Liquidity section, but doing so before claiming rewards may result in missed earnings.
Q: Are there gas fees on Base Chain?
A: Yes, but they are significantly lower than on Ethereum Mainnet—often just a few cents per transaction.
Q: How do I track my rewards?
A: Visit the “Positions” tab under Liquidity or Stake sections on Aerodrome to view accrued fees and staking rewards.
About pSTAKE Finance
pSTAKE Finance is a Binance Labs-backed liquid staking protocol designed to unlock staked asset utility across multiple blockchains. Users stake proof-of-stake tokens (like ATOM) and receive stkTokens, which represent their staked balance plus rewards—while remaining fully transferable and usable in DeFi applications.
By integrating with major ecosystems like Base Chain and partnering with leading DEXs such as Aerodrome, pSTAKE enhances capital efficiency and yield potential for crypto holders.
Its intelligent delegation algorithm promotes network decentralization by distributing stakes across diverse validators—making it not only profitable but also beneficial for blockchain security.
Final Tips for Success
- Monitor price trends if using CL200 pools; consider adjusting ranges during high volatility.
- Reinvest rewards periodically to compound gains.
- Always double-check network settings (Base Chain) before initiating transactions.
- Keep small amounts of ETH on Base for gas payments.
👉 Maximize your DeFi returns with seamless access to next-gen liquidity protocols.
With this guide, you’re fully equipped to add PSTAKE liquidity on Aerodrome Finance and start earning yield efficiently on Base Chain. Stay informed, manage risks wisely, and make the most of evolving DeFi opportunities.