Hello Tokenomy users,
As announced recently, we are able to swap any ERC20 Tokens on UNISWAP. But did you know? We can also do “Liquidity Mining” by becoming a TEN Liquidity Provider (LP) on Uniswap!
If you are a TEN Holder, it is time for you to become a TEN LP and enjoy the benefits!
Liquidity Pool on DeFi Platform
A crypto exchange usually uses an order book model to execute trades. This is how a traditional stock exchange works. But this model depends so much on market makers to provide liquidity in an exchange. But with a liquidity pool, we can have automated market makers to provide constant liquidity, so we don’t need to rely on external market makers or a centralized order book anymore.
In DeFi platform, a liquidity pool facilitates a price adjustment on a specific token pair, using a mechanism called AMM (Automated Market Maker). The algorithm behind this mechanism keeps the quantities of the 2 supplied tokens remain the same. Take DAI/ETH on Uniswap as an example, the liquidity pool that holds DAI and ETH will create a new market for DAI/ETH. The larger the liquidity pool, the lesser the slippage and price movement.
The Benefits of Being a Liquidity Provider
Now, a liquidity provider is someone who supplied funds to the liquidity pool. When you become the TEN Liquidity Provider (LP), you add TEN and ETH (with 1:1 ratio) to the TEN-ETH pool on Uniswap and will receive LP Tokens (wETH) and TEN in a proportional share of the pool (according to how much liquidity you supplied to the pool) as your incentive. As long as you become a TEN LP on Uniswap, a 0,3% incentive fee will be rewarded to you for every transaction of TEN/ETH or ETH/TEN on Uniswap. This is what is called “Liquidity Mining”.
How to Become TEN LP on Uniswap
To join, follow these steps:
- Install MetaMask and create an account.
- Click ADD TOKENS and choose CUSTOM TOKEN, then input TEN contract address: 0xdd16ec0f66e54d453e6756713e533355989040e4
- Go to Uniswap Exchange, click CONNECT TO A WALLET and choose MetaMask.
- After your MetaMask account is connected, click POOL Menu, and input the amount of TEN and ETH you want to add to the pool (gas fee might apply).
- Click ADD LIQUIDITY and wait for the confirmation.
- Once confirmed, you will be able to see the percentage of your Share of Pool and monitor your incentive fees.
- To claim your wETH and take back your TEN tokens from the pool, click REMOVE LIQUIDITY (Gas fee might apply). Please note that the amount of TEN and ETH that you receive might change due to the liquidity used on Uniswap.
Become a TEN LP on Uniswap now and start mining your liquidity rewards!
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