> For the complete documentation index, see [llms.txt](https://gitbook.pencilsprotocol.io/overview/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gitbook.pencilsprotocol.io/overview/pencils-protocol-swap-tutorial.md). # Pencils Protocol Swap Tutorial ## **- Swap** ### Step 1: Go to the Swap page and connect your wallet.
### Step 2: Select the token you want to swap by clicking on the ticker a drop-down allows you to view and the searching feature is enabled.
### Step 3: Enter the amount you wish to trade, review the transaction details displayed, click confirm Swap, and confirm the transaction.
### Step 4: Pay the transaction fee, and the swap is successfully completed. ***\*Note: The fee is deducted from your wallet balance. Please ensure you have sufficient token balance; otherwise, the transaction will fail.***
## - Adding Liquidity ### Step 1: Choose the trading pair for which you want to provide liquidity. ***Example: Add liquidity to the USDC/ETH pool.***
### Step 2: Select the pool fee tier. Based on the guidance provided, choose an appropriate fee tier. For non-stablecoin pairs, it is generally recommended to select the feetier with a 0.3% fee.
### Step 3: Choose the price range for liquidity provision. In Pencils Swap V3, liquidity aggregation reduces the computational load compared to the standard V2 version, optimizing gas fees. V3 divides the entire price range into selectable price points. Choose a specific price range to minimize gas fees and enhance efficiency.
### Step 4: Set the deposit amount for the tokens you wish to provide as liquidity.
### Special Case: Providing liquidity outside the spot price range * If the lower bound of your price range is entirely above the current market price, you only need to provide a single token, such as ETH. * Conversely, if the upper bound is completely below the current market price, you only need to provide a single token, such as USDC.
## - Removing Liquidity ### Step 1: Click on Liquidity and select Your Positions.
### Step 2: Click on Remove Liquidity.
### Step 3: Choose the amount you want to remove and click Remove.
### Step 4: Pay the transaction fee, and the liquidity will be successfully removed.