Sushi on Katana supports both v2 and v3 liquidity pools. Most pools are currently on Sushi v3, which uses concentrated liquidity, meaning you provide liquidity within a specific price range. You only earn fees while the price stays in range, but your capital works more efficiently than in v2.
In this example, we’ll walk through how to LP on a v3 pool, specifically the AUSD/USDC pair.
Step 1: Select a Rewards Pool
1a. Go to sushi.com/katana/explore/pools, connect your wallet, and filter by Farms only to view pools with active $KAT or $SUSHI rewards.
Browse the available pools and pick one you want to provide liquidity to. In this example, we’ll use the AUSD/USDC pool.
Click on the pool name to view details and proceed to "Add Liquidity".
1b. Alternatively, you can also start from this page. In this tutorial, we will follow this route.
đź”— sushi.com/katana/pool
Click "I want to create a position", then choose the farmable pool you want to join. From the dropdown, select “V3 Position.”
Step 2: Choose Your Token Pair
Select the pair you want to LP.
In this example, we’ll use vbUSDC / AUSD.
Step 3: Select a Fee Tier
Choose the fee tier based on volatility:
- 0.01% – Best for stable pairs (e.g. AUSD/USDC)
- 0.05% – For low-volatility assets
- 0.3% – Default for most token pairs
- 1% – For volatile or exotic pairs
The system will auto-select the optimal tier — in this case, 0.01% for stables.
Once selected, continue to set your price range.
Note: If you create a position from 1a, you will automatically join the preset fee tier for the pool — in this case, 0.01% for stable pairs like AUSD/USDC.
Step 4: Set Your Price Range
Select the minimum and maximum price you believe the token pair will trade between. This depends on your research, risk tolerance and strategy.
- The narrower the range, the more capital efficient your position will be — meaning you earn more fees with less capital.
- But if the price moves outside your selected range, your position stops earning fees.
You can:
- Manually drag the price band
- Or choose a preset like:
- Full Range – Always in range (like v2), but less efficient
- ×÷2, ×÷1.2, ×÷1.01 – Tighter, more efficient ranges
- Single-Sided (Left or Right) – Deposit only one token based on your market view
Tip: Stable pairs can often use very tight ranges, while volatile pairs may need more room.
Step 5: Review Capital Settings
After setting your range, you’ll see Min & Max Price – These define the price band where your liquidity is active. You only earn fees when the market stays within this range.
Stable pairs like AUSD/USDC can use tighter ranges for higher efficiency since prices rarely move much. Volatile pairs may benefit from wider ranges for better coverage.
You can adjust the range manually or use the preset options. Hover over the tooltips for deeper explanations.
You'll also see key metrics that help assess your position:
- Token Ratio – How your deposit is split between the two tokens, based on the range you choose.
- Capital Efficiency – How much more efficient your range is compared to a full-range (v2-style) position. Narrower = more efficient.
- Estimated APR – Based on the past 24 hours of trading fees, assuming your position stays in range. Does not account for impermanent loss.
Step 6: Input Token Amounts
Enter how much you want to deposit.
Note: The token ratio may not be 50/50 depending on the price range you've set.
Step 7: Approve both Tokens
Click “Approve” for each token.
Your wallet will prompt you to allow Sushi to use your funds.
Step 8: Preview and Confirm
Once approved, click “Preview.”
Review the summary (price range, slippage, token amounts), then click “Add Liquidity.”
Confirm the transaction in your wallet.
Step 9: Confirmation
You’ll see a notification confirming your position has been created.
You can click “View on Explorer” to verify it onchain.
Step 10: Manage Your Position
Return to sushi.com/katana/pool and go to the “My Positions” tab.
Here you can track your LP position, check unclaimed fees, and manage your liquidity.
