Removing liquidity on Pancakeswap is as simple as adding liquidity.
Liquidity is important in all financial markets, especially crypto. It allows the trading of a crypto asset easily without impacting its price.
For cryptocurrency assets, liquidity can be provided in Liquidity Pools which provides an avenue for trading a cryptocurrency.
They are smart contracts where traders can lock their tokens to provide liquidity for a token.
Locking liquidity means renouncing ownership of the LP tokens, and it is usually based on time lock smart contracts.
However, liquidity can be provided to support a token. In return, the provider earns a certain percentage of network and transaction fees from each trade.
Removing liquidity on Pancakeswap is simple. All you need to do is visit the liquidity pool on Pancakeswap. Then find the tokens you supplied and remove them to exchange them back to the tokens.
However, many times, when removing liquidity on Pancakeswap, liquidity providers encounter problems of stuck liquidity and the inability to remove their liquidity.
To solve this problem, providers can withdraw their BNB assets in small fractions of wrapped BNB. Alternatively, they can adjust and raise slippage tolerance.
Here’s how to solve the problem of Pancakeswap liquidity removal not working.
1. Withdrawing as Smaller Fractions of Wrapped BNB
The first way to successfully remove stuck liquidity on Pancakeswap is by withdrawing smaller fractions of wrapped BNB.
Typically, providers can exchange their Pancakeswap LP tokens directly to BNB only.
To do this, Visit Pancakeswap liquidity pool at https://exchange.pancakeswap.finance/#/pool
Here you can add liquidity or see the pair that you’ve added liquidity for.
Navigate to YOUR LIQUIDITY and click the pair you want to remove liquidity from the pool.
Click Remove to finalize your exchange.
Another window will pop up where you can enable your tokens and approve the removal. Click enable and approve Metamask prompt. Afterward, click ‘Remove.’
Finally, another pop-up will appear where you can confirm your transactions. Click CONFIRM and approve the Metamask prompt afterward.
However, if your transaction gets stuck in the final CONFIRM, you can remove a smaller fraction of the token with WBNB instead of BNB.
On your transaction analysis, in the AMOUNT section, reduce the percentage from 100% to 10-20%.
The next section indicates how many tokens you will receive, tap RECEIVE WBNB and proceed with the transaction.
Click Remove and Confirm afterward. The removal will go through.
Repeat the process until you remove everything.
2. Raise your slippage tolerance in the settings
The slippage tolerance feature in Pancakeswap enables you to set the maximum amount of slippage you can accept. This simply means the maximum amount of difference between a token to its actual price that you can accept.
Therefore, if the slippage tolerance for your order is lower than the slippage set, the transaction will not go through.
To adjust your slippage, go to Pancakeswap liquidity pool.
In the ‘YOUR LIQUIDITY’ section, select the LP token you want to remove.
Finally, tap the settings icon in front of YOUR LIQUIDITY. Under SLIPPAGE TOLERANCE, increase slippage from its default preset.
Then, tap REMOVE to continue the process. If it doesn’t work, you can continue to increase the slippage by 1% till it works.
Although there are other third-party aggregator DEXes that support the removal of Pancakeswap liquidity, the safest way to do that is still through Pancakeswap.
Always remember to check the link you’re using to avoid phishing attacks and safeguard your assets.
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