Tutorial. How to farm SWINGBY on Ethereum?
What is liquidity farming?
Liquidity mining (yield farming) is providing a liquidity pair of tokens to decentralized exchanges (DEXs) in order to earn rewards. Since the primary goal of an exchange is to be liquid, DEXs seek to reward users willing to bring capital to their platform. They offer a share of the fees in return. Uniswap offers 0,3% of swap fees, Sushiswap — 0,25%, moreover Swingby Protocol pays rewards 2 swigby per ETH block (minted every 10 sec) to users why locked their LP (ETH-SWINGBY) tokens. Great explanation of liquidity farming is here: https://www.youtube.com/watch?v=ClnnLI1SClA
What is impermanent loss?
Impermanent losses are one of the risks concerned with liquidity farming. An impermanent loss is when you provide liquidity to the pool and the price of the deposited assets changes compared to when they are deposited. The greater this change, the more vulnerable you are to a temporary loss. In this case, the loss means a lower dollar value at the time of withdrawal then at the time of deposit.
Do you want know more? Watch this video: https://www.youtube.com/watch?v=8XJ1MSTEuU0
How to calculate impairment loss? Check it here: https://dailydefi.org/tools/impermanent-loss-calculator/
How to farm SWINGBY?
All you need is a Trustwallet and exact dollar value of ETH and SWINGBY tokens. Follow this tutorial step by step. In case of doubt ask question on telegram channel.
- Send your SWINGBY from exchange to Trustwallet using the BNB (bnb1…) chain.
2. Swap SWINGBY from BNB to BSC chain — click “More” and then “Swap to Smart Chain”.
3. Select the amount and click “Swap”. Confirm the transaction.
4. To see SWINGBY on BSC balance you need to turn on SWINGBY BSC (BEP20) token option on trustwallet. Click the icon with a slider and find SWINGBY BEP20.
5. If there is no SWINGBY Token on BEP20 click “Add Custom Token”, go to token contract: https://bscscan.com/address/0x71de20e0c4616e7fcbfdd3f875d568492cbe4739 and click QR icon.
6. On Trustwallet select “Smart Chain” network, click scan icon and scan contract code on bscscan website.
7. Repeat previous point with Ethereum network and this contract: https://etherscan.io/address/0x8287c7b963b405b7b8d467db9d79eec40625b13a
8. Swap your SWINGBY BSC tokens to ETH chain here: https://bridge.swingby.network/
If you have a problem connecting your wallet simply send SWINGBY on BSC chain here: 0x00Bf937F2049D84Bc62a2781362ddea5fc082A0a (this is a bridge contract) and wait a few minutes to get SWINGBY ERC20.
9. Top up your address with some ETH token to pay gas fees.
10. Go to https://farm.swingby.network/ and click “Get LP from Uniswap” or “Get LP from Sushiswap”.
11. Wrap ETH to WETH9 to put it in liquidity pool.
12. Select the amount of tokens you want to lock. Click “Approve Swingby”, “Approve WETH9” before if using these tokens for the first time.
13. Click “Supply” to lock pair of tokens in Uniswap/Sushiswap smartcontract. You will get LP tokens in exchange.
14. Go to https://farm.swingby.network/ and connect Trustwallet using Walletconnect and click “Enable” to give farm access to your LP tokens.
15. Put LP token amount you want to lock or click “Max” to lock all tokens, click “+” button and confirm the transaction in your wallet.
16. In order to gather SWINGBY click “Harvest” button.