Aleph.im
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ALEPH Reward Pools on Uniswap And Balancer

ALEPH Reward Pools on Uniswap and Balancer, two leading Automated Market Makers (DEXs)

We are proudly trading on two of the most highly regarded AMMs, which allows our community and supporters to access our ALEPH token in a fully decentralized manner. Meaning that as a user, you have access to the world of self-custodial decentralized exchanges where there is no need to sign up and can directly trade from your Ledger, Metamask or Trustwallet.

For that to happen with minimum slippage and the best possible prices, Uniswap gives trading fees (0.30% of any trade) to Liquidity Providers of any pool.

On top of that, we give an additional reward to liquidity providers depositing funds into our ALEPH Liquidity Pools.

Buying ALEPH tokens on Uniswap

TL;DR. Liquidity Pools for ALEPH V2 token

EDIT: the links above were updated after the ALEPH Token Swap.

Skip to the end of this article if you just want to know how to provide liquidity

Bonus Rewards In Details

There are 14.45K ALEPH tokens awarded per day across all pools. The daily amount varies slightly according to blocktime as the reward is exactly 2.2 ALEPH per block and Ethereum blocktime varies a bit. Taking an average of 13.15 blocktime, we get 14454 ALEPH reward tokens distributed per day.

We calculate the reward per LP according to the amount of time each LP has been participating for and according to the size of their contribution to the pool. When we say “amount of time”, we mean by block, each time there is a change of distribution in the pool we recalculate the reward for the ongoing period.

The ALEPH-WETH Liquidity Pool on Balancer

Here is a scenario and rough estimation of ALEPH LP reward:

  • You provide liquidity for 10 days ALEPH-DAI Uniswap pool worth 20K USD
  • During these ten days, the total value locked across all the pools was worth 2M USD on average during these 10 days. For example, it could be spread out this way: 1M USD ALEPH-ETH Uniswap pool + 500K USD ALEPH-DAI Uniswap pool + 500K USD ALEPH-WETH Balancer
  • You will then receive 1% of the rewards — because 20K of 2M is 1%
  • So you get 1445 ALEPH: 1% of 14.45K x 10 days

When Do Rewards Get Distributed?

Rewards are distributed when the Transaction Fees on Ethereum are reasonable. Gas costs can be pretty high right now so we try to pick the best possible timeframe in order to reward our LPs as generously as possible.

Uniswap Explained

Uniswap is a new generation of DEX (Decentralized Exchange): it is an AMM. AMM stands for Automated Market Maker, it is also called a Liquidity Pool Protocol. You can think of AMMs as a new generation of DEX.

Simply put, the bread and butter of any centralized or decentralized exchange is liquidity. If an exchange has low liquidity, prices are bad and slippage is huge. This new type of DEX incentivizes participants to provide liquidity — to deposit funds in the exchange’s pools — by rewarding them a part of the fees collected on the trades.

Additionally, AMMs are different from regular DEXs as they are powered by an algorithm that determines the best possible price for any asset, but without the use of an order book.

Uniswap phenomenal volume growth. Source: debank.

Uniswap has been the most successful AMM so far, recently getting even more volume per day than Coinbase (on August 30th 2020) and a very high value of liquidity locked on its platform (ATH of $2B on Sep 4th). Their incredible track record speaks for itself.

What traders do on Uniswap

  • Swap ERC20 Tokens
  • Self-Custodial Trading — directly trade from your Ledger and Metamask
  • Unstoppable, Pseudo-Anonymous and Censorship-Resistant Trading
  • Pay trading fees

What Liquidity Providers do on Uniswap

  • Add Any Token Pair — equal value of ETH and ERC20 tokens
  • Gets Rewarded — 0.3% of trades by Uniswap and sometimes additional rewards by other projects

Balancer Explained

Balancer walks in the footsteps of Uniswap, it is also an AMM. But it adds features such as supporting pools with up to 8 different tokens and customization of token weights and trading fees per pool.

Uniswap vs. Balancer Labs. Source: Token Terminal.

Beyond these differences, Balancer comes with a lot of pool types and features such as multi-path and smarter routing that makes it an extremely special and powerful tool.

You can think of Balancer as a much more advanced AMM.

Impermanent Losses

Impermanent Losses is probably the most “innovative risk” that comes with providing liquidity in AMMs as it is unlike any other risk previously known when trading or staking.

Essentially, because of the nature of how AMMs work — giving you back the same value ratio as when you entered your LP position — you will be impacted by the price change of one of the assets provided. In simple words, if you provide a pair, lets say ETH-ALEPH and the ETH price changes and this change is non-correlated to ALEPH, then you will not gain the same ratio of ETH-ALEPH as when you entered the liquidity pool; meaning that you might get less profits or more losses than if you were simply hodling while the tokens were changing price.

Impermanent Losses cheat sheet

Impermanent Losses are sometimes seen as the price for hedging your investments. As in, when you put your token in a pool you guarantee yourself some profit by being rewarded trading fees and often additional rewards such as the one aleph.im is running. And one of “the costs” for taking part in this opportunity is impermanent losses. As seen in the table above, this probably is not worth it once the token varies in price greatly.

Risks Associated

Uniswap has been audited and battle tested with huge amounts of liquidity for months now, proving its reliability and safety.

Transaction fees can be extremely high at any moment. So do the maths to make sure it is worth paying the requested fees for the amount of liquidity you are adding and the rewards you will get in return.

Impermanent losses as explained in the previous section.

DYOR before participating in a Liquidity Pool. It involves complex logic, and much like for the rest of your crypto journey, you should be careful when using a tool for the first time and never invest a sum you are not ready to lose.

How To Provide Liquidity On The Uniswap Pool

If you do not see your ALEPH tokens in metamask, please watch our video guide on How to show ALEPH tokens in Metamask.

Then follow the video guide below to deposit funds in the ALEPH-ETH Uniswap Pool.

FYI this is the Uniswap pool for the new Aleph Token (ALEPH V2): https://app.uniswap.org/#/add/0x27702a26126e0b3702af63ee09ac4d1a084ef628/ETH

Video Guide: how to participate in the ALEPH-ETH Uniswap Liquidity Pool

How To Provide Liquidity On The Balancer Pool

If you do not see your ALEPH tokens in Metamask, please watch our video guide on How to show ALEPH tokens in Metamask.

Then follow the video guide below to deposit funds in the ALEPH-WETH Balancer Pool.

FYI this is the Balancer pool for the new Aleph Token (ALEPH V2): https://pools.balancer.exchange/#/pool/0x4c34a687906092ec11cc04ddf30b71e29747ed76/

Video Guide: how to participate in the ALEPH-WETH Balancer Liquidity Pool

Keep In Touch

Thank you for reading this article.
If you have any question, do not hesitate to directly reach out to us.

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Adrien Be.

Adrien Be.

Crypto Professional. Prev. DoinGud, aleph, ixo network, Ten8VC, member @ GenesisDAO + FestDAO + PolkaDAO