When it was first launched, liquid staking took the crypto space by storm. This is the fifth installment in the tutorial series on how to use and earn ASH at AshSwap. Ready? Let’s begin!
Liquidity Staking is the process of using the liquidity you add to AshSwap pools to earn ASH premiums.
As many people are aware, when liquidity providers (LPs) deposit assets into an AshSwap pool, special tokens known as liquidity provider tokens (LP tokens) are minted and sent to the provider’s address. Whenever a trade occurs, 50% of the total trading fee is prorated across all LPs in the pool at the time of the trade. In addition to earning fees, we allow LPs to stake their liquidity tokens and watch them generate returns. As a result, LPs can through Using Liquidity Staking stake the LP tokens and earn ASH rewards.
As an LP, you now have an incentive to keep your LP token as you can earn more returns in the form of ASH tokens.
Staking liquidity benefits AshSwap as it encourages users to add more liquidity to the log and then stake that liquidity. This helps maintain liquidity and reduce slippage, which can lead to an increase in trading activity.
We then go into how liquidity staking works from the user’s perspective.
If you haven’t seen our previous tutorials, here’s a replay of how to connect your wallet:
To get started with AshSwap you need a wallet that supports MultiversX. Currently you can connect via MultiversX DeFi Wallet Extension, Xportal App, Ledger Wallet, MultiversX Web Wallet. The navigation bar is located in the top right corner of the page where the Connect Wallet button is located. Once you click on that, you just select which wallet you want to use.
After connecting to your wallet, you will find a list of supported staking pools. Your dashboard shows all the important details, like your total farmed reward, overall stats, and the most important part: the detailed farms
At the time of writing, AshSwap offers three farms:
- USDT/USDC/BUSD
- USDT/ASH (v2)
- BUSD/EGLD (v2)
To earn $ASH as a liquidity provider on AshSwap, there are two staking methods and we’ll show you both! Note that both methods achieve the same result; There are only two ways to do this on our platform.
1st way: If you have not yet provided liquidity to the pool, which means that you do not hold AshSwap LP tokens.
The key steps are outlined in our previous AshSwap Guide Ep.3: Liquidity Provisioning. In short, there are 3 simple steps to becoming an LP on AshSwap:
- Access to: https://app.ashswap.io/pool/
- Choose which pool you want to add liquidity to and enter the number of tokens
- Click “Deposit” to add liquidity to the pool.
Follow all the above steps, after that you can go to https://app.ashswap.io/stake/farms/ to start farming.
Way 2: Ideally if you have previously deposited (but not topped up) assets into the liquidity pool on AshSwap
- Access to https://app.ashswap.io/stake/farms/
- In the pool you wish to wager, click on “Bet LP”.
To customize what you see on the screen, Total APR is the sum of trade APR and ASH reward. Trading APR is for Liquidity Pool earnings, while ASH rewards can be determined by Farm Weight Voting and increased by veASH. Boosting is a topic for our next article, and we’ll stick with the basic farm for now.
Statistics on issuance APR, total LP stakes and total pool liquidity are displayed in each pool. These numbers affect the ASH reward you receive.
- Enter the amount you want to wager. You can preview your staked tokens, stackable tokens, and APR.
- Click Stake to grant AshSwap access to your LP tokens. Validate the transaction in your wallet.
Once the transaction is complete, you should be able to see your wagered LP and reward amount on the farming page.
All of your earned $ASH will be displayed under the Details section of the farm page. There are two ways to claim your ASH award.
- If you farm in multiple pools, you can claim your ASH reward in all pools by clicking the Harvest button in the Your Summary table.
- Or click the Harvest button on each pool to receive your ASH reward separately.
Please note that a gas fee will apply if you authorize the claim.
That’s it! Now you have some ASH credit for governance staking.
- Click staking on the pool you wish to stake.
You can choose to unstake all or part of your staked LP tokens. Enter the amount you wish to withdraw. You can preview your remaining staked tokens. On the right is a simulation of how much less ASH you earn per day due to the unstake event.
Please remember that you will also receive your ASH reward at the same time as you receive your LP tokens.
- Click “Unstake” to unstake your stablecoins and approve the transaction on the wallet extension.
- If you wish to withdraw your liquidity, you can refer to the withdrawal steps in our previous AshSwap Guide Ep.4: Liquidity Provisioning
🚨 Beware of scammers! As is usual with decentralized exchanges, the AshSwap team has no customer support accounts or pages. You can ask questions in our Telegram group or Discord channel. Our mods & admin will answer your questions publicly.
🚨We will never ask for your private information or request transfers or funds. Never share your private key/seed phrases with others, and do not click on links or download files sent to you in direct messages.
🚨If anyone has a DM impersonating you as a member of the AshSwap team, please get in touch with us immediately and expose the scammers.
AshSwap is the first-ever stable swap, an undoubtedly essential pillar in any DeFi ecosystem built on the MultiversX blockchain. Our ultimate vision is to serve as infrastructure for the sustainable development of DeFi on MultiversX.
AshSwap not only inherits the ideas of its predecessors, but also introduces new and novel concepts to address the current issues in DeFi. The ASH token has many more use cases than just reward farming and proxy voting.
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