Shiden and Ethereum LP Yield Farms will go LIVE on Kwikswap Protocol very soon / this also coincides with the UI update and Liquidity Migration Tool !!
(please note: screenshots and video will be added to this document shortly, we are trying to fix some subgraph issues ATM)
What is Yield Farming?
Yield Farming is a decentralized finance tool that allows a user to earn interest for holding & staking tokens — such as $KWIK or $SDN. It’s also a great method for Protocols such as Kwikswap, to encourage its community and new users to provide more “liquidity”.
Liquidity is required for a DEX AMM to be able to facilitate effective token swaps and reduce slippage fees.
Liquidity pools are where tokens are pooled into market pairs so that users can utilize them through a Protocol such as Kwikswap to execute trades in a decentralized manner. These pools are created by users that wish to profit from the pools usage.
To pool liquidity, the user supplies two tokens in equal amounts: the primary token (in this example, $KWIK token) and the base token (usually ETH, SDN or another stable coin or token).
Farming KWIK/ETH example
In this example, Kwikswap will offer its native $KWIK tokens as an added incentive to users who provide Liquidity with any of the pairs listed below on not only ETHEREUM but also SHIDEN Network shortly.
$KWIK tokens and ETH act as liquidity for the market. Kwikswap's Farms are a program which allows users to earn rewards in KWIK tokens for every block that they deposit and keep the required tokens on the Kwikswap platform (AKA the token emissions)
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Watch the video above or see below for a step-by-step guide on how to add liquidity to Kwikswap so you can start earning KWIK and KWIK rewards from the Kwikswap Farm.
Keep in mind that ETH gas fees are needed for interacting with the Kwikswap platform, so make sure you have extra ETH for gas fees.
The 4 Step Process of yield farming
There are four steps to successfully yield farm via Kwikswap’s Farm (scroll down below to find a more detailed guide on how to perform each of these four steps):
- Provide liquidity to the KWIK/ETH liquidity pool which will give you Kwikswap Liquidity Pool (KWIK-LP)* tokens.
- Stake acquired KWIK-LP tokens to the Farm for KWIK/Wrapped ETH (WETH) to earn rewards in $KWIK tokens.
- Harvest to claim your rewards.
- Unstake your KWIK and ETH from the liquidity pool to stop yield farming and claim back your staked tokens.
Video Walkthrough
Watch this walkthrough video for instructions or read the step-by-step guide below. (demo video coming soon)
How to Provide Liquidity in the KWIK/ETH pool:
- Go to app.kwikswap.org and connect via MetaMask for this walk through.
2. On the Kwikswap Menu, click on Pool and provide liquidity by selecting KWIK & ETH pair. You can select your desired budget by entering a value for either of the two tokens. Kwikswap will calculate the corresponding amount of ETH that also needs to be added to the pool. In the example below, we are adding 27489.6 KWIK tokens which is equivalent to 0.5 ETH to the KWIK/ETH liquidity pool. (At the time of preparing this walkthrough)
3. In exchange for adding ETH and KWIK tokens to the pool, you will receive KWIK/ETH pool tokens to validate that you own a part of the pool. These are known as Kwikswap Liquidity Pool Tokens (KWIK LP) tokens.
As an example, we will be receiving 93.85 KWIK/ETH pool tokens.
How to Stake in the KWIK/WETH Farm:
- Once you have your KWIK LP tokens, head to the Farm page and then click on the KWIK/WETH Farm. Your KWIK LP token wallet balance will be displayed above the “Stake” field. Select MAX to stake all your available KWIK LP tokens. (please note — we are staking more than the above example of pool tokens (485.50 KWIK LP tokens)
2. If this is your first time staking, you will need to approve Kwikswap to interact with your KWIK LP tokens before you can finalise the transaction. Once that is done, click “Confirm” via MetaMask.
3. You should be able to see the total of your KWIK LP tokens staked on the right-hand side. If you check below you will see you are accruing KWIK tokens continually while you stake your KWIK-LP tokens.
4. You may leave your staked KWIK-LP tokens in the Farm and earn rewards continually. As detailed in this article, a maximum of XXX? KWIK tokens will be distributed proportionally among each staker per day, with the pool running for 90 days.
How to Harvest your KWIK rewards:
- Click “Harvest” to claim the current rewards owed to you in the farm page, then confirm the transaction via MetaMask. You can skip this step if you plan to remove all your tokens, as rewards will be automatically harvested when you “Unstake” (which can also assist in gas fees savings).
How To Unstake / Stop Yield Farming:
- Now to unstake your KWIK/WETH KWIK-LP tokens, click MAX in the field above the “Unstake” button. Click “Unstake” and confirm the transaction via MetaMask.
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2. You can then check that the KWIK/WETH Farm now has XX KWIK-LP staked tokens. Your tokens will be shown in your wallet balance on the left.
3. Now, you need to remove your KWIK and ETH tokens from the liquidity pool. Click Pools in the top menu. You will see any open liquidity positions that you currently have on Kwikswap. Click on the KWIK/ETH liquidity pool to see your pool token balance.
4. Click “Remove.” Remove the intended amount of KWIK-LP tokens (up to 100%). Check the amount of KWIK and ETH that will be returned and please note that this may vary against the amount you originally deposited.
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5. Click “Confirm Withdrawal.” Confirm via Kwikswap and then confirm the transaction via MetaMask.
6. Once finalized, you can check your MetaMask account and see the ETH and KWIK tokens back in your wallet.
Once all of these steps have been completed, you have successfully yield farmed and earned rewards with KWIK on Kwikswap. Congratulations!
There are some risks associated with Decentralised yield farming so please do your due diligence.
To purchase $KWIK tokens — please visit Uniswap or Kwikswap DEX
