Step-by-Step Guide to Providing Liquidity to the PEN/XLM Pool on Zenlink

5 min readApr 10, 2024

XLM users can now send their tokens to Zenlink DEX on Polkadot through the Spacewalk Bridge, opening up access to several XLM pools, including the new XLM.s/PEN pool. This marks the first occasion for Stellar Lumen holders to directly contribute liquidity on Polkadot and reap rewards.

To participate in the PEN/XLM liquidity pool and earn rewards on Zenlink, you’ll first need to acquire PEN and XLM tokens. Here’s a comprehensive guide to get you started, including how to use Spacewalk to acquire XLM:

1. Get PEN
2. Bridge XLM with Spacewalk
3. Get a Polkadot Wallet & Connect on Zenlink
4. Choose the Pool
5. Add Liquidity

Step 1. Get PEN

If you already have PEN >> skip to step 2.

From Centralized Exchange

Sign up with MEXC and purchase Pendulum (step-by-step guide) Withdraw your PEN tokens to your Pendulum address. If you need help setting up your Polkadot/Pendulum wallet, check out our docs.

From Decentralized Exchange (DEX)

PEN is listed on Zenlink DEX and StellaSwap.
On Zenlink DEX, connect your wallet to Zenlink, and ensure your wallet is on the Pendulum network. Go to the “Swap” section of Zenlink. Select the asset you want to swap for PEN such as DOT or GLMR.
You can also swap a variety of Polkadot native assets (e.g. DOT, USDT, USDC) for PEN tokens using the Stellaswap trading UI on Moonbeam.

Fiat On-Ramp

If you prefer to purchase PEN directly with fiat currency (e.g. USD, EUR), you may use Alchemy Pay’s fiat on-ramp solution.

Step 2. Get XLM on Spacewalk

I. Stellar Wallet Setup

Visit the Lobstr wallet website to create a Stellar wallet.
If you already have a Lobstr wallet with Stellar assets, proceed to the next step.

II. Acquire Assets on Lobstr

Utilize MoonPay or Stripe within Lobstr to purchase XLM or USDC with fiat (e.g., USD, EUR).

III. Bridge Assets with Spacewalk

Navigate to the Spacewalk on the Pendulum Portal.
Select ‘To Pendulum’ and choose the asset (XLM) you wish to bridge.
Enter the XLM amount and initiate the bridge process. Connect your Polkadot wallet if prompted, then click ‘Approve’.

IV. Deposit via Lobstr

Return to Lobstr, select ‘Send’, and enter the deposit details as specified by Spacewalk.
Ensure to paste the recipient’s address from the ‘In a single transaction to’ section on Spacewalk.
Then, tick the ‘Add Memo’ box to input the required text memo.
Note: Stellar transactions require memos for processing.
Review your payment details before clicking ‘Send.’

V. Success

The bridging transaction usually completes within a minute. Check the status via the ‘Transfers’ tab on Spacewalk.
If the transaction hasn’t been processed after 10 minutes, reach out to support through Telegram or Discord.

Step 3. Get a Polkadot Wallet & Connect on Zenlink

For newcomers, a user-friendly wallet experience is crucial. We suggest Talisman or Subwallet for desktop users, and Nova Wallet for those on mobile.
Once your wallet choice is made, navigate to Zenlink’s Pool UI.
Click “Connect Wallet” and select your wallet type. For NovaWallet users, choose ‘Wallet Connect’, scan the QR code with NovaWallet, and complete the connection steps.
Once connected, ensure your wallet is switched to the Pendulum network.

Step 4: Choose the Pool

At ‘All Pools’, it displays all the available liquidity pools of the networks. Switch the ‘All Networks’ to ‘Pendulum’ to see the available pool on Pendulum.
Select the PEN/XLM pool to provide liquidity.

Once you have selected the pool, click ‘Deposit’ which will bring you to the page for adding liquidity.

Step 5: Add Liquidity

Enter your desired amount of PEN or XLM. The corresponding amount needed for the other token in the pair will be automatically calculated based on the current pool ratio.
Review the pool details. After approval, click “Add Liquidity” to add your tokens to the pool. Then, confirm the transaction in your wallet.

Navigate to the ‘My Position’ section to view your contributed liquidity.

Congrats! You’ve become an LP on Pendulum through Zenlink. Your contribution to these liquidity pools goes beyond earning rewards. By providing liquidity, you’re also critical in ensuring smooth and efficient trading for everyone within the Pendulum ecosystem. Don’t forget to monitor your LP positions and watch your rewards grow over time.

To ask any questions please join our community on Telegram and Discord, we’re ready to support you around the clock!

About Zenlink

Zenlink is a decentralized exchange (DEX) protocol built on the Polkadot network, aimed at facilitating seamless interoperability and liquidity sharing across different blockchains. Leveraging the advanced capabilities of Polkadot, Zenlink offers users a wide range of DeFi services, including swapping, liquidity provision, and cross-chain trading.

About Pendulum

Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized Forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.

Keep your eyes on the Pendulum!

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