How to take part in a Liquidity Pool
How to take part in a Liquidity Pool
At the time of writing CHEQ is currently only available for liquidity providing on the Osmosis DEX.
The CHEQ token is available in two pools:
Pool #602: CHEQ / OSMO
Pool #617 : ATOM / CHEQ
First, head to Osmosis and click enter the lab.
Once you’ve agreed to terms and you’re ‘in the lab’ you’ll see some trading pairs and a button to connect your wallet (bottom left of the dashboard).
You can then select Keplr wallet which will automatically connect to your Keplr wallet if you’ve already set it up as a Browser extension.
Next, you’ll need to deposit the assets you would like to contribute towards a Liquidity Pool. You can see the available Liquidity Pools under ‘Pools’. For example, if you would like to contribute to the Pool #602 : CHEQ / OSMO, you will need to deposit both of these tokens.
To do so, select ‘Assets’ and find the tokens you would like to deposit to contribute to the pool.
Note: if you already hold OSMO in your Keplr wallet you won’t be required to deposit.
Once you have deposited enough tokens for both sides of the pools (i.e. ensure that if the pool is setup as 50:50, you must have the equivalent amount is USD on both sides)
Next, find your pool and select ‘Add/ Remove Liquidity’.
Here you’ll be able to add tokens on both sides of the pool.
On selecting ‘Add Liquidity’ you’ll then be directed back to Keplr to approve the transaction (a small fee is required).
Once you have added liquidity to the pool, you’ll receive your LP tokens (a token representing your share of the total pool). Now it’s time to start ‘Liquidity Mining’.
You’ll now be able to see your total Available LP tokens. Below this you’ll see an option to Start Earning.
Once here you’ll see a few options for your unbonding period (i.e. the amount of days it takes to remove your tokens from the pool if you decide to withdraw). The longer you choose to bond your tokens, the higher the rewards you’ll be eligible to earn.
Next select the amount of your LP tokens you’d like to contribute to the pool and finally hit ‘Bond’ (this will kick off another approval through a Keplr pop-up).
You’ll now see your total bonded tokens. Each day rewards will then be distributed. When you decide to withdraw from the pool you’ll simply need to select ‘Remove Liquidity’ and select the amount you’d like to withdraw.
Conclusion
Overall, Liquidity Pools are an incredibly exciting and equalising tool, which represent the true nature of the DeFi and Web3.0 movement. Where for many years engaging in and benefiting from such financial systems was reserved solely for the wealthiest individuals and large organisations, now anyone can gain access and start contributing to their favourite projects, voting on their future direction and earning from the part they play.
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