How to earn liquidity mining incentives on Osmosis
On Osmosis, users can participate in LIKE liquidity pools for liquidity mining to earn incentives and swap fees.
Please note liquidity mining may result in impermanent loss, assess the risks before you dive into the ecosystem.
Liquidity mining requires registration of Keplr wallet
and depositing LikeCoin to Keplr.
On the menu of Osmosis select Pools and search for "LIKE". The following example is for pool 553.
Each Liquidity pool has its own ratio, Pool#553 LIKE/OSMO ratio is 50% / 50%, which means you have to prepare 50% LIKE to match with 50% OSMO.
Click on the left menu and select Trade to get LIKE or OSMO.
On the top left hand corner:
- Pool Liquidity is the total amount in the pool
- My Liquidity is the liquidity amount that you own in this pool
- Bonded is the liquidity that you bonded with this pool
- Swap Fee is the fee that people have to pay if they make a swap in the liquidity pool
- Exit Fee is the fee to withdraw funds from this pool.
Click "Add/Remove Liquidity"
On Manage Liquidity, fill in the amount of LIKE that you are going to put in the pool, the amount of OSMO will be automatically filled in. Then click "Add Liquidity", Keplr will pop up a confirmation window, click "Approve" and it's done. And in fact there are several steps that required confirmation from Keplr, you can click "Approve" when come across with them.
If you would like to trade more funds for adding liquidity, click "Swap Token" at any time to trade.
Providing liquidity will receive a swap fee.
After adding liquidity, you will receive LP Token according to the shares that you have provided in proportion to the whole liquidity pool. Bonding these LP Tokens will receive liquidity mining rewards.
Go to the right hand side of the screen and check out the Available LP tokens that you have, then click "Start Earning".
On Bond LP tokens there are three gauges: a day, 7 days and 14 days and they offer different APR, the longer the unbonding period the greater the APR. You can choose to bond all your LP Token to a 14 day gauge, or bond a different amount of tokens to different gauge. Input the number that you want to bond and click "Bond".
On My Bondings shows the number of tokens that you've bonded.
On the top left hand corner, the bonded liquidity is increased.
On Daily Epoch 17:00 UTC, the liquidity mining rewards in OSMO will be automatically delivered to your Keplr wallet.
Go back to My Bondings, on the gauge that to be unbonded, click "Unbond All".
Please note the unbonding period is the time that you selected the gauge, e.g. 14 days requires 14 days to completely unbond, 7 days requires 7 days to unbond. During the unbonding period, you can still earn liquidity mining rewards until you are fully unbonded.
Click "Add / Remove Liquidity", on Manage Liquidity select Remove Liquidity. You may select the full amount 100%, 75%, 50% and 25% to withdraw. Removing liquidity requires Exit fee, while you can get swap fee according to the proportion of your LP shares.
Click on the left menu and select Assets and check the amount of funds that you've withdrawn.