A Step-by-Step Guide to Yield Farming With Eidoo
Moreover, Eidoo wallet has integrated the Steroids dApp, making it very easy to join Uniswap and Curve liquidity mining pools directly.
The pools work in different pairs. Half of the funds you provide are converted into the staked token (pLTC, PNT, or pBTC) at market price when joining a pool. This provides liquidity to the pool at a 50/50 ratio.
Make note that this process may be subject to slippage. This is the price impact on conversion and depends on the behavior of the token price when more token volume enters the pool. The more volume you put in the pool the bigger the impact might be.
To prevent unbalancing the price, you may want to check the state of the market to assess what amount is reasonable. The Eidoo wallet helps to make the decision by providing the volume of your operation and the current market metrics (pool size and estimated return rate) so that users are properly informed before making any investment.
Now let’s learn how to use the different pools with the Eidoo wallet. As of May 2021, the available liquidity mining pool pairs are:
Stake pLTC/ETH, earn PNT (Uniswap)
Stake PNT/ETH, earn PNT (Uniswap)
Stake pBTC/ETH, earn PNT (Uniswap)
pBTC on Curve (stake pBTC/sbtcCRV, earn PNT+CRV)
Staking in Liquidity Mining Pools
The operation is very simple. In this yield farming guide, we will go through the procedure for staking in each of them to finish with the process of claiming your yielded funds.
1. The pLTC/ETH Pool
Every week a reward of 15,000 PNT is distributed according to the relative weight among the liquidity providers. This is a Uniswap pair for the ETH/pLTC liquidity pool. The steps to participate are the following:
Click on “Stake pLTC/ETH & Earn”.
The next screen gives the information of the product, in this case, pLTC/ETH pool. As stated in the button below, you will provide ETH to stake the pool. Click it to proceed.
On the next screen, you can fund the operation with your wallet by clicking on PROCEED. The fund will come from your Eidoo wallet.
2. The PNT/ETH Pool
Similar to the previous pool, liquidity can be provided for the PNT/ETH pair. It is also a Uniswap pool providing liquidity for the pNetwork governance token and ether.
As shown before, the next screen will give some advice with the estimate of the operation. Click on the button “Use ETH to stake PNT/ETH”.
If you are happy with the simulation numbers above, the only step left is funding the pool. Set the desired amount and click on PROCEED.
3. The pBTC/ETH Pool
Another one of the pairs available on Uniswap through Eidoo is pBTC/ETH.
The procedure is the same once you enter the option shown in the image below.
The screen to send funds to the pool is also similar to previous cases. As said, set the amount and click on PROCEED.
4. The pBTC Curve Pool
This option uses Curve.finance as a liquidity platform, but the usage is very similar within Eidoo wallet. The product itself is different from the previous one (Uniswap) as this provides liquidity through a metapool that pairs pBTC, sBTC, renBTC or WBTC. In any case, you will be provided with an estimation of the calculated yields at the time of the operation.
As stated, by entering the pool, you will yield PNT and CRV tokens from Curve with this product. Other than that the procedure is quite the same.
Fund the operation as you would with the other pools and you are done. So, set the amount and click PROCEED.
Claim Your Rewards
At some point, you may want to cash in the generated funds of your liquidity investments.
Please note that you will claim just the rewards, not the invested funds as they will remain locked within the pool until you UNSTAKE.
First, enter the operation where you invested by clicking the appropriate button.
When shown with the estimation, just click below on “CLAIM REWARDS”.
On the next screen, the address field will be already filled in (do not change it). Just indicate 0 as the ETH amount to retrieve and click on PROCEED. Afterward, you are done.
Unstaking Your Funds
By unstaking, you will be retiring the rewards and the funds, leaving altogether any participation in the liquidity pool where you invested.
Note that it is not possible to partially unstake. You may withdraw everything but not part of it. No slippage risks are involved in the operation.
Click on the product you invested in.
Select “Unstake & Claim”.
This is a 2-step process. The first one is similar to the one we saw to reclaim your rewards. Click on Step#1.
Do not change the provided address and indicate “0” (zero) to the amount in ETH. Then click on PROCEED.
Follow the same process as you did above. When presented with the transaction screen do not change the provided address and enter “0” as the ETH amount. Click “Proceed” and your funds are ready for you.
Now that you are equipped with the full guide on how to stake in liquidity mining pools available through the Eidoo wallet, no more waiting — download the app and start staking!