Adding Liquidity.

Let's look at this add liquidity transaction shown in EigenTx to understand what's happening.

The full token flow chart is here.

Dive into the details.

Steps 0, 1: You added USDC and WBTC to the pool.

Step 2: The "virtualLiquidity," the virtual contract recording the total shares of the pool, minted a certain amount of "virtualLiquidity," to record your adding USDC & WBTC liquidity operation. Here, EigenTx uses "virtualLiquidity" as a voucher.

Step 3: The double-entry bookkeeping demands that once a record is added, another record must be added to balance the balance sheet. After step 2, another virtual asset as a voucher, "virtualLiquidity-350101", has to be "minted" to record the shares owned by you now, and it is transferred to your "UNI-V3-POS-350101" NFT contract.

Step 4: The actual NFT, UNI-V3-POS-350101, is minted and transferred to you, the liquidity provider, indicating your position/shares in the pool.

All the dashed lines in the chart show the connections between these actual and virtual contracts.

In comparison with adding liquidity, removing liquidity is more complex.