Learn how to stake $SAO on Bancor to earn fees paid in $SAO and receive 100% Impermanent Loss Protection.
Here we will show you how to deploy your funds on the $SAO pool on Bancor, enjoy its features, and how to earn yields paid in $SAO!
This article is for those who are familiar with the concept of liquidity provision and would like to get their feet wet with Bancor’s LP mechanism while putting $SAO work.
1. Deposit $SAO to the Pool
Open Bancor’s list of pools: https://app.bancor.network/eth/data
Hit the blue [+] button to add liquidity to the $SAO pool.
You will then see a box to provide single-sided liquidity.
At the moment of writing, there is available space for 2,293,553 SAO to be deposited in a single-sided manner.
It means that there is a corresponding value in $BNT tokens waiting on the sidelines to be put to work once you deposit your $SAO.
Since you are depositing $SAO for the first time, Bancor will ask you to Approve Token spending.
There are two ways to do so:
- Unlimited Approval — gives Bancor permission from now on to spend your SAO tokens in an unlimited manner — better for those who want to save on gas and fully trust Bancor’s smart contracts.
- Limited Approval — lets Bancor spend only the amount you’ve entered. Bancor will request approval again if you decide to deposit more $SAO tokens in the future. A less gas-efficient option for those who deeply care about security.
After proceeding with one of these options, your wallet will ask you to confirm the action and pay a gas fee.
2. Portfolio Overview
Once the transaction is successful, your $SAO will be part of the $SAO pool and you’ll automatically start earning auto-compounding fees, paid in $SAO, from every $SAO trade on Bancor.
In the portfolio section of Bancor, you will be presented with a dashboard with a bunch of numbers that tell you exactly what’s going on around your deposited $SAO.
3. Withdrawing from Bancor
Whenever you feel like it’s time to withdraw your tokens from Bancor, follow these easy steps below.
Withdrawing $SAO
Once you are done with liquidity provision, you can fully or partially withdraw your $SAO from the pool.
To be eligible for impermanent loss protection when withdrawing, your $SAO needs to have been staked for at least 30 days. After hitting the [Continue] button, all you need to do is to confirm the transaction and you will receive your deposited $SAO to your wallet plus $SAO fees earned on your stake. You can find more information on Bancor’s impermanent loss protection here: https://docs.bancor.network/faqs
About Bancor
Bancor is the only decentralized staking protocol that allows you to earn money with single-token exposure and full protection from impermanent loss. Launched in 2017, Bancor was the first DeFi protocol. Today, it generates millions in fees per month for depositors, offering up to 60% APR on tokens like ETH, WBTC, LINK, MATIC, AAVE & more. Bancor is owned bny its community as a decentralized autonomous organization (Bancor DAO).
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