Removing liquidity is a process of redeeming received Liquidity Provider Tokens back into the deposited tokens. By doing this, the user receives back their portion of the tokens locked in the liquidity pool.
The value of LP tokens is impacted by several factors over the time the liquidity is locked in the pool:
By accumulated swap fees
In the case of ADA/token pools also accumulated staking rewards
And lastly the change in the ratio of the asset pair
That means that the liquidity provider removing his liquidity may receive tokens in a different ratio. Since WingRiders currently uses a constant-function market maker, similar to other DEXes, the value of the liquidity pool tokens is susceptible to impermanent loss.
A simple example of a liquidity removal can be seen in the following image:
Guide
You can access the option to remove liquidity through the Pool and Portfolio tabs. In the Pool tab, you can filter the desired pool using the provided filter text field. In the Portfolio tab, you have listed only the pools you have liquidity in.
After clicking on the Deposit/Manage button, a Manage liquidity form will appear. You want to have selected the Remove liquidity option. Here you can choose the percentage of your provided liquidity to remove.
To access the Transaction settings, click the ⚙️ button. There you will find the option to adjust the slippage tolerance and deadline.
Once you are ready, click Withdraw Liquidity. WingRiders will let you once more review the transaction details. If you are satisfied with the transaction, confirm it using the Confirm button. Afterward, you will be prompted by your connected wallet to sign the transaction (example from Nami Wallet, the interface may differ in other wallets).
After a successful signature, WingRiders will inform you about a successful withdraw liquidity request submission. You can track the progress of your request in the Transactions tab, either by clicking Transaction list in the message window or clicking Transactions in the top right corner.
After successful execution, you will see that swap listed in the Completed tab.
