How to Earn Extra Yield on FXSwap LP Tokens with Baklava Space
Food For Thought
When you’ve got idle cryptocurrency lying around, there’s no better way to leverage those assets for profit than to turn them into Liquidity for trading pools and earn fees as a reward.
One the F(x)Core ecosystem, you can easily access Liquidity Provision opportunities on the FXSwap dApp where there are very active and highly liquid pools capable of generating decent transaction fee revenue for all liquidity providers.
While the pool fees are great, wouldn’t it be even better if those fees were converted into more liquidity to add to your already existing position, effectively making your slice of the pool fees larger? But as much as that is a splendid idea, the actual execution is rather strenuous for a person to carry out repeatedly.
|Provide Liquidity> Generate Fee Rewards> Harvest Rewards> Provide Liquidity Again| < — — Rinse & Repeat😫
Any normal person would get tired after repeating this process 3 times. Isn’t there a tool that could auto-compound those fees into more liquidity without much procedure? Well, there is!
Introducing Baklava’s FXSwap Yield Vault
Allow me to introduce Baklava Space’s FXSwap Yield Vault. The one-stop-shop to Auto-Compounding Yield on FXSwap Liquidity Positions.
Ideally, Baklava is a one-click vault system that implements strategies to maximize DeFi yields. It has over $17.5M in TVL and operates with chains such as Avalanche and very recently, FunctionX.
Within the FunctionX side of Baklava Space are 2 vaults, one of which can help with the Auto-compounding idea we had at the beginning of this article. It’s called: FX-Swap Yield Farming Vault and it already has close to $100,000 in TVL and offers over 100% APY within some of its mini vaults. We are going to explore the entire process of setting up our Auto-Compounding vault all the way from FXSwap to Baklava and see how it all works.
Time To Earn Some Yield!
So, to get started, we’re going to need a few essential things:
- A Crypto Wallet
-Metamask is probably the go-to option but Baklava also has Coin98 wallet as a default option so you can use that too. Your wallet will have to be on the F(x)Core chain. You can get the network details HERE to set it up on your wallet. - FX Tokens
-These tokens will be used for gas fees on both FXSwap and Baklava. They will also be the first half of the LP token pair which we can earn extra yield on at Baklava Space. So they are 100% very important! - Specifically one of these 5 cryptocurrencies on F(x)Core: USDT, PUNDIX, PURSE, WETH, or BAVA. The reason is that the Baklava vault currently only offers yield auto-compounding for these 5 vaults.
Once we have all our required tools, our first step would be to head over to the FXSwap dApp. You can follow this link to get there👉https://fx-swap.io/. Now this page will automatically land you on the FXSwap Swapping Page where you can exchange your FX tokens for any of those previously mentioned cryptocurrencies if you haven’t already gotten them yet.
As soon as you’ve gotten your tokens, just click on the Pool tab where you can see the current Liquidity reward structure (0.3% of trading fees for the pool).
Now we just connect our wallet to the dApp, ensuring we are on the F(x)Core chain, and after that, click ‘Add Liquidity’. Next, we have to choose to provide liquidity in a proportionate manner with FX tokens and any of those tokens I mentioned👉USDT, PUNDIX, PURSE, WETH, or BAVA.
Now, customize how much you’d like to use for liquidity, Approve and Confirm the transaction in your wallet and this will give you LP tokens for that liquidity pool you just added your assets to.
Now that we have our LP tokens secured, we need to head over to Baklava Space’s vault for FXSwap. You can follow this link to get there👇https://baklava.space/vaults/fxswap/. Once you arrive, you’ll be greeted with an intro on the vault and when you scroll down, you can see that Baklava supports vaults for those specific tokens I mentioned with a max APY of 134%
So at this point, all you need to do is connect your wallet to Baklava, choose the vault for which you own LP tokens, and deposit your LP tokens to the vault to receive BRT2 tokens and that would be all!
Your BRT2 tokens are backed by the underlying LP token and will automatically start reinvesting your yield and also reward you with BAVA tokens for using their platform.
At any point, you can withdraw your LP tokens and you can also harvest all the BAVA rewards from your vault. Now you can kick back and relax and watch as Baklava auto-compounds your FXSwap yield for you!
Final Thoughts
Overall, that's how you can start auto-compounding your yield from FXSwap with Baklava Space. It’s really cool to see some awesome and very useful dApps being built and integrated into F(x)Core. I hope this guide was helpful and I'd love to know if it was.
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