Osmosis
How to earn liquidity mining incentives on Osmosis
Last updated
How to earn liquidity mining incentives on Osmosis
Last updated
On Osmosis, users can participate in LIKE liquidity pools for liquidity mining to earn incentives and swap fees.
Please note that liquidity mining may result in impermanent loss, so assess the risks before diving into the ecosystem.
Liquidity mining requires registration of Keplr, Leap, Cosmosation or Keplr Mobile on desktop, and depositing your LikeCoin to these wallets.
Currently, LikeCoin has two liquidity pools in Osmosis:
On the menu of Osmosis select Pools and search for "LIKE" and you can find the two pools.
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. You can also find the following information:
24h Trading volume of the pool
Pool Liquidity is the total amount in the pool
Swap Fee is the fee that people have to pay if they make a swap in the liquidity pool
Click on the left menu and select Swap to get LIKE or OSMO, and learn how to buy LikeCoin:
After preparing LIKE and OSMO, on Level 1, you can earn swap fees for providing liquidity to this pool. Click "Add Liquidity".
On Add Liquidity, fill in the amount of LIKE that you are going to put in the pool, and 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. There are several steps that require confirmation from Keplr, click "Approve" when you come across them.
When using Leap, Cosmostation, and Keplr Mobile, the respective confirmation screen will also pop up.
If you would like to trade more funds for adding liquidity, click "Trade Pair" at any time to trade.
After adding liquidity, you will receive shares ( sometimes called LP Token ) according to the shares that you have provided in proportion to the whole liquidity pool. Bonding these shares will receive liquidity mining rewards.
Check out the available shares that you have, and you can enter into Level 2 Bond Liquidity. Click "Bone Shares".
The pop-up window shows the APR ( Annual Percentage Rate ) and must be bonded for 14 days to obtain liquidity mining rewards. In "Amount to bond," enter the number of shares to be bonded and click "Bond".
After completion, it will show that it takes 14 days unbonding, the number of bond shares, and APR, etc.
Go back to the top, and you will find more information, which are:
Your Pool Balance, the number of LIKE and OSMO bound to the liquidity pool, and their shares in the pool
Bonded is the liquidity that you bonded with this pool
My Liquidity is the liquidity amount that you own in this pool
You're currently earning is how much you are earning every day
On Daily Epoch 17:00 UTC, the liquidity mining rewards in OSMO will be automatically delivered to your Keplr wallet.
Go back to Bond liquidity and click "Unbond".
Note that it takes 14 days to unbond. During the unbonding period, you can still earn liquidity mining rewards until you are fully unbonded.
After the unbinding is complete, go back to Level 1 and click "Remove Liquidity" to get back the cryptocurrency. You can select Assets in the left-hand menu to view the retrieved LIKE and OSMO.
Go to Info on the menu or https://info.osmosis.zone/ will provide statistics of the liquidity pool.
Users can also use Osmosis App in Keplr Mobile to add and manage liquidity.
