About VanSwap
Vanswap is the first automatic liquidity acquisition yield farm and AMM decentralized exchange running on Vision Chain with lots of unique and creative features that let you earn and win.
In this guide, we will explain how to choose a liquidity pool to join, the entire process of participating in a liquidity pool and then staking your share to farm $Van tokens.
📢 Before we begin, let’s talk a little bit about LPing and Yield Farming
Please note that liquidity providing (“LPing”) and Yield Farming are highly risky and should not be attempted by players who are new to cryptocurrencies. There is a chance you may lose all of your tokens and it is generally impossible for the team to fix any mistakes. One of the main risks is known as Impermanence Loss (IL). For more details, please Google it.
LPing is about users adding funds to a liquidity pool with their crypto assets to facilitate trading on a platform. This means they might earn rewards for providing the liquidity.
Liquidity pools help decentralized exchanges (DEXes) that use automated market maker-based systems (AMMs) to allow trading of illiquid trading pairs with limited slippage. This is instead of using traditional order book-based trading systems, such as exchanges, that require funds to be held for every asset in every trading pair to allow trades to be executed.
To engage in LPing, users contribute 2 tokens as a pair which must be balanced 50%-50% by value. Liquidity providers earn a 0.25% fee on all trades proportional to their share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing their liquidity.
As mentioned above, providing liquidity incurs a risk of losing your tokens via Impermanence Loss.
Yield “farming” generally means giving something to a platform (usually by staking assets) to receive rewards (e.g. an annualized percentage yield (APY)). Often this entails adding liquidity to a network and then additionally staking the liquidity provider tokens, or adding liquidity to a market for borrowing and lending. VanSwap encourages users to provide the liquidity required for a decentralized exchange to be able to facilitate swaps between various tokens.
Don’t forget to install and set up your Vtimes/MetaMask/ONTO Wallet for those who don’t have it in order to proceed with the Liquidity Pool.
🧐 How to join a Liquidity Pool:
There are four steps to successfully yield farm via Vanwap’s Farm (scroll down below to find a more detailed guide on how to perform each of these four steps):
- Provide liquidity to the liquidity pools which will give you Vanswap Liquidity Pool (VLP)* tokens.
- Stake acquired VLP tokens to the Rewards Farm to earn rewards in $Van tokens.
- Harvest to claim your rewards.
- Unstake your #VS and #Van from the liquidity pool to stop yield farming and claim back your staked tokens.
For details, please read the step-by-step guide below:
1. Go to the pool page:https://www.vanswap.org/#/swap/pools.
2. Click “Connect wallet” and select a wallet (e.g. Vtimes). Then click the “Add Liquidity” button
3. Then search for the pair you want to join, i.e. $VS / $Van, please notice that befor you adding the liquidity, you need to approve both $VS & $Van. Then enter the amount of $VS you want to inject into the pool, and the needed $Van will be automatically calculated.
4. Then click on the “Supply” button. Once confirmed, you will be able to add liquidity to the pool. Click the “Confirm Supply” button and proceed with the transaction.
5. In exchange for adding $Van and $VS tokens to the pool, you will receive $VS/$Van pool tokens to prove you own a part of the pool. These are known as Vanswap Liquidity Pool Tokens.
Important: Choosing a liquidity pool would require careful research before implementation, thus we suggest each individual doing their own thorough research before joining a pool. This means weighing the amount of risk you are willing to take based on your current situation. No one is advised or forced to join the liquidity pool. We kindly players ask to double-check all the instructions and implementations in advance. Keep in mind that there will be gas fees upon each transaction!
📈 Staking Liquidity Tokens (“Farming” ):
- Once you have your VLP tokens, head to the Farm page, you can see there are 2 types of the farm pools: Fixed and flexible, select the farm you want to join.
2. Your VLP token wallet balance will be displayed above the “Stake” field. Select MAX to stake all your available VLP tokens.
3. You should be able to see the total of your VLP tokens staked on the button of the farm pool that you chose. You can click “ — ” to reduce or remove your LP token and click “+” to add LP token.
4. If you want to claim the current rewards, click “Harvest” and confirm the transaction in your wallet.
How to quit LP farm and remove liquidity.
Before you remove liquidity, you need to unstake your LP tokens first.
1. Click “ — ” to unstake your LP tokens.
2. Click “Max” to remove all LPs and confirm in your wallet.
3.Go back to the pool page Exchange | VanSwap — … and click your liquidity.
4. Then click “Remove” button and click “Max” to remove all liquidity, do not forget to approve before you remove.
Your liquidity will be withdrawn from a given pool upon tx confirmation. After, the coins/tokens will return to your balance and become freely available.
