Sparkdex — Frequently Asked Questions

Sparkdex is deployed on Flare Network — an EVM-compatible Layer 1 blockchain that provides native access to decentralized price feeds, cross-chain data, and real-world information through its built-in FTSO (Flare Time Series Oracle) and State Connector protocols.

To use Sparkdex you need a compatible wallet (such as MetaMask, Rabby, or any WalletConnect-compatible wallet) configured for the Flare Network. The native gas token is FLR.

• Chain ID: 14
• RPC: https://flare-api.flare.network/ext/C/rpc
• Explorer: https://flare-explorer.flare.network

Sparkdex takes security seriously. The smart contracts powering the protocol have been reviewed and audited by independent security researchers. The team follows industry best practices including multi-sig treasury management, timelocks on upgradeable contracts, and staged deployments.

That said, DeFi always carries inherent risks including smart contract vulnerabilities, market volatility, and impermanent loss for liquidity providers. You should never deposit more than you can afford to lose, and always DYOR (Do Your Own Research) before interacting with any DeFi protocol.

Audit reports and security documentation are available in the official Sparkdex docs.

Unlike traditional AMMs where liquidity is spread uniformly across all price ranges, Sparkdex V4 uses concentrated liquidity — a mechanism that lets you deposit tokens within a specific price range of your choice.

This means your capital is put to work only when the market price is inside your selected range, generating fees far more efficiently. A position covering 1% of the total price curve can earn fees equivalent to a much larger position in a V2 pool, assuming the price stays within range.

Key concepts to understand:

• Ticks: Discrete price points that define range boundaries.
• In-range vs out-of-range: Only in-range positions earn swap fees.
• Impermanent loss: Concentrated positions can experience greater IL if the price moves far outside your range.
• Full-range positions: You can still provide liquidity across the full price curve if you prefer a passive strategy.

Adding liquidity on Sparkdex takes just a few steps:

• Connect your wallet on the Pool page.
• Select the V4 tab and click Add Liquidity.
• Choose your token pair (e.g. FLR/USDT) and the fee tier (0.01%, 0.05%, 0.3%, or 1%).
• Set your price range. For a passive strategy, select Full Range. For an active strategy, set a custom min/max price.
• Enter the deposit amounts and approve the tokens if needed.
• Confirm the transaction in your wallet.

Once added, you will receive a position NFT representing your liquidity. Fees accrue in real-time and can be collected at any time from the Your Positions tab.

You can also stake your LP position in the Farm tab to earn additional Sparkdex rewards on top of trading fees.

Impermanent loss (IL) occurs when the price ratio of the two tokens in your LP position changes compared to when you deposited. If you had simply held the tokens instead of providing liquidity, you might end up with a higher value.

With concentrated liquidity on Sparkdex V4, IL can be amplified in narrow price ranges because your capital is more exposed to price movement within that range. However, the higher fee earnings from concentrated positions often offset or exceed the IL — especially in high-volume, range-bound markets.

Tips to manage IL on Sparkdex:

• Choose stable/stable pairs (e.g. USDC/USDT) for minimal IL.
• Use wider price ranges for volatile assets to reduce IL risk.
• Actively manage and rebalance your range when the market moves.
• Factor in fee earnings when evaluating your net position performance.

Swapping on Sparkdex is straightforward:

• Navigate to the Swap page.
• Connect your wallet.
• Select the input token (the token you want to sell) and the output token (the token you want to receive).
• Enter the amount. Sparkdex will automatically find the best route across V2, V3, and V4 pools.
• Review the swap details: rate, price impact, and minimum received.
• Adjust slippage tolerance if needed (default is 0.5%).
• Click Swap and confirm in your wallet.

Sparkdex uses a smart order routing engine that splits trades across multiple pools for optimal execution. For large trades, always check the price impact — trades with >5% price impact may result in significant slippage.

Sparkdex supports all ERC-20-compatible tokens on Flare Network. Key trading pairs include:

• FLR/WFLR — Wrapped Flare pairs
• FLR/USDT, FLR/USDC — Stablecoin pairs
• SFLR/FLR — Staked Flare
• BTC.b, ETH and other bridged assets — Cross-chain tokens

New pools can be created permissionlessly by anyone. If a token exists on Flare, you can create a pool and trade it on Sparkdex without any listing process.

Use the token search in the swap interface to find any token by name, symbol, or contract address.

Sparkdex offers an on-chain perpetual futures trading engine with up to 50× leverage. Perpetuals are derivative contracts that have no expiry date and track the price of an underlying asset through a funding rate mechanism.

Key features of Sparkdex Perps:

• Up to 50× leverage on supported markets (BTC, ETH, FLR, and more).
• Long and short positions — profit from both rising and falling markets.
• On-chain execution — all trades settle on Flare, no centralized matching engine.
• Funding rates — periodic payments between longs and shorts to keep the perpetual price anchored to the spot price.
• Liquidations — positions are automatically liquidated if they fall below maintenance margin.

To trade perps, navigate to the Perps tab, connect your wallet, deposit collateral (USDC or FLR), and open your position. Always use stop-losses and manage your leverage carefully.

Sparkdex offers two main ways to earn staking and farming rewards:

1. LP Farming: Add liquidity to eligible pools and stake your LP NFT position in the Farm section. You earn WFLR and other reward tokens on top of the trading fees your position already generates. Rewards are distributed continuously and can be harvested at any time.

2. FLR/SFLR Staking: Through the Stake section, you can stake FLR to receive sFLR (Staked Flare) and participate in Flare's native staking rewards. Sparkdex integrates with the Flare ecosystem's staking infrastructure for maximum capital efficiency.

To start farming on Sparkdex:

• Add liquidity to a farming-eligible pool (marked with a reward icon).
• Go to the Farm tab and find your pool.
• Click Stake and approve the transaction.
• Your rewards begin accruing immediately. Claim anytime.

Sparkdex runs periodic trading competitions on its perpetual exchange. The current competition distributes up to 250,000 rFLR every week to the top traders based on trading volume and PnL.

How to participate:

• Connect your wallet on the Sparkdex Perps platform.
• Trade perpetual contracts during the competition period.
• Rankings are updated in real-time on the leaderboard.
• Rewards are distributed automatically at the end of each weekly epoch.

rFLR (reward FLR) can be used across the Sparkdex ecosystem. Check the official announcement for full rules and prize breakdowns.

Sparkdex supports any wallet that is compatible with Flare Network (EVM, Chain ID 14). This includes:

• MetaMask — the most popular browser extension wallet.
• Rabby Wallet — a security-focused alternative to MetaMask.
• WalletConnect — connect any mobile wallet via QR code or deep link.
• Coinbase Wallet — via WalletConnect integration.
• Bifrost Wallet — a wallet built specifically for Flare Network.

To add Flare Network to MetaMask manually, use these settings:

• Network Name: Flare Mainnet
• RPC URL: https://flare-api.flare.network/ext/C/rpc
• Chain ID: 14
• Currency Symbol: FLR
• Block Explorer: https://flare-explorer.flare.network

Failed or stuck transactions on Sparkdex are usually caused by one of the following:

• Insufficient gas: Make sure you have enough FLR in your wallet to cover gas fees. Even small transactions require a small amount of FLR as gas.
• Slippage too low: For volatile pairs, increase the slippage tolerance to 1–2% (or higher for low-liquidity tokens) in the settings.
• Outdated price quote: Prices update every few seconds. If you wait too long before confirming, the quote expires. Click Refresh and try again.
• Approval not confirmed: For new tokens, you must first approve the Sparkdex router contract before swapping. Make sure the approval transaction confirmed before retrying.

If a transaction is stuck in your wallet as "pending", you can speed it up or cancel it by submitting a new transaction with the same nonce and higher gas. Most wallets provide this option under advanced settings.

For persistent issues, reach out on the Sparkdex Discord or Telegram.

Sparkdex uses a tiered fee structure depending on the pool type and version:

V4 / V3 Concentrated Liquidity Pools:

• 0.01% — Stable pairs (USDC/USDT)
• 0.05% — Low-volatility pairs
• 0.3% — Standard pairs (most pairs)
• 1% — Exotic or high-volatility pairs

V2 Pools: A flat 0.3% fee applies to all V2 swaps. Of this, 0.25% goes to liquidity providers and 0.05% to the protocol treasury.

Perpetual Trading Fees: Opening and closing a position costs approximately 0.05–0.1% of the position size. Funding rates are variable and depend on market conditions.

There are no additional platform fees charged by Sparkdex beyond the standard pool fees — gas costs on Flare are extremely low, typically fractions of a cent per transaction.

Sparkdex currently distributes rewards in WFLR (Wrapped FLR) and rFLR (reward FLR) through its farming and trading competition programs. The team has indicated that governance and tokenomics details will be shared as the protocol matures.

For the latest announcements about Sparkdex's tokenomics, follow the official channels:

• Twitter / X: @SparkDexAI
• Telegram: SparkDexAI
• Medium Blog
• Official Docs

Sparkdex stands out from other decentralized exchanges in several key ways:

• Built for Flare: Sparkdex is purpose-built for Flare Network, leveraging its unique FTSO price oracles and native cross-chain capabilities — something generic DEX forks cannot replicate.
• Full DeFi stack: Sparkdex is not just a swap interface — it combines AMM swaps, concentrated liquidity (V4), perpetual trading, LP farming, staking, and a liquidity locker all in one platform.
• V4 architecture: The V4 pool design brings significant gas efficiency and capital optimization improvements over V3, making it one of the most advanced DEX architectures available on any EVM chain.
• Community-driven: Sparkdex is developed by a transparent team with an active community on Discord and Telegram. The protocol is designed to be progressively decentralized.
• Ultra-low fees on Flare: Thanks to Flare's low gas costs, even small trades and frequent liquidity management operations are economically viable on Sparkdex.

Sparkdex integrates with multiple bridge providers to help users bring assets from other chains onto Flare Network. You can find the Bridge button directly in the Sparkdex header navigation.

Supported bridge routes include assets from Ethereum, BNB Chain, Arbitrum, Avalanche, and other major networks. Supported assets include USDC, USDT, ETH, BTC (as BTC.b), and more.

Steps to bridge to Flare for Sparkdex:

• Click the Bridge button in the Sparkdex header.
• Select your source chain and the asset you want to bridge.
• Enter the amount and confirm. Bridging typically takes 5–20 minutes depending on the source chain.
• Once assets arrive on Flare, you can immediately swap or provide liquidity on Sparkdex.

For native FLR, you can purchase it on centralized exchanges that support Flare (such as Coinbase, Kraken, or Bybit) and withdraw directly to your Flare wallet address.

All official Sparkdex resources are available through the links below. Be careful of scammers and impersonators — the only official channels are listed here:

• Website: https://sparkdexapp.net
• Documentation: https://docs.sparkdex.ai/
• GitHub: github.com/SparkDEX
• Twitter/X: @SparkDexAI
• Telegram: t.me/SparkDexAI
• Discord: discord.gg/eUjY9R4Fqz
• Medium Blog: medium.com/@SparkDEX

Sparkdex will never DM you first, ask for your seed phrase, or request you send tokens to claim a reward. If someone claims to be Sparkdex support and asks for any of these things, it is a scam.