Introducing the APY LP Reward Program
Today, we announce the APY LP Reward Program that will reward token holders that provide liquidity via Balancer or Uniswap.
Summary
- Token holders that provide liquidity to Balancer and Uniswap are able earn APY token rewards via the Reward UI that goes live November 13th.
- Token holders that provided liquidity before November 13th will be retroactively rewarded.
- 5,000 APY tokens per day will be rewarded to APY/USDC Balancer LPs.
- 5,000 APY tokens per day will be rewarded to APY/ETH Uniswap LPs.
The motivation for incentivizing liquidity into the Uniswap and Balancer pools is to reward long-term APY holders for promoting healthier liquidity in the ecosystem. Liquidity providers (LPs) will share the rewards proportionally.
Balancer: How to participate?
Provide liquidity to the APY Balancer Pool
- Be sure to have USDC and APY in your web3 wallet in advance (Metamask, Trust Wallet, Coinbase Wallet, Cypher, etc.).
- Navigate to the Balancer Pool and press “Add Liquidity” on the top-right of the webpage:
4. Before you can add liquidity, you need to set up a proxy (It is a one-time procedure to save your gas in the long-term). Press “Setup”:
5. Now you can choose the way (Single asset or Multi assets) you want to provide liquidity, you can also provide liquidity if you only have USDC. Once you confirm the transaction, Balancer will automatically divide your token into 2 parts as the ratio of the pool( 80% APY and 20% USDC).
e.g. If I add 1000 USDC to the pool, $800 valued APY and $200 valued USDC will be provided into the pool.
Uniswap: How to participate?
- Be sure to have ETH and APY in your web3 wallet in advance (Metamask, Trust Wallet, Coinbase Wallet, Cypher, etc.).
- Navigate to the Uniswap Pool page and supply the desired amount of APY and ETH into the pool:
3. Before you can add liquidity, you need to click “Approve”.
4. Once you add liquidity, you will receive Uniswap UNI-V2 LP tokens.
Staking your tokens
You can easily stake your LP tokens once you receive them from Uniswap or Balancer when the APY staking UI goes live. APY rewards will be allocated proportionately to liquidity contribution. Every staker is able to claim rewards based on their ratio EVERY BLOCK.
Staking UI goes live November 13th
Risks and Costs
Providing liquidity to Balancer and Uniswap involves risk like any other AMMs(Uniswap, Bancor):
- Impermanent Loss
When providing your APY and USDC to the Balancer pool, the fluctuation of the token price will lead to a temporary loss of funds. Read here for more info.
2. Gas fee cost to provide liquidity
Adding and removing liquidity into Balancer or Uniswap will require gas transaction fees to send the transaction through.
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