How to provide liquidity to the Bankless 80/20 Pool
Balancer is a customizable liquidity protocol tackling DeFi’s liquidity issue through its flexible pools. If you need a primer on Balancer, we recommend reading the article linked here.
In partnership with Balancer, Bankless DAO launched a 12 week liquidity mining program to showcase its potential. The program will distribute 85,000 BANK and 480 BAL per week to liquidity providers.
With this program, Bankless DAO is supporting BPT tokens as access to the community Discord. To gain Level 1 access, you’ll need 4,200 BPT tokens. For Level 3, the threshold is 15,000 BPT!
Interested in getting involved? Great.
Let’s show you how to use it.
🧠 Already a Balancer pro? Jump directly into the pool here.
Welcome to Bankless’ Balancer Pool
Bankless DAO’s liquidity pool is an 80/20 pool. This means that 80% of the pool is in BANK while 20% of the pool is in WETH. To save you time from filtering between all the pools, you can go directly to the pool here.
The goal of this article is to give you a step-by-step guide on how to provide liquidity to the Balancer pool.
Let’s get started.
👉 Note: BAL rewards will automatically be claimable via the website while a separate UI to claim BANK rewards will be released soon. Stay tuned.
Pre-Requisites: An understanding of Balancer + BANK & WETH.
To prepare for your deposit, you need to calculate how much BANK and WETH you’ll want to contribute. (All token prices are calculated as of October 26th, 2021)
- Decide. Determine how much BANK you want to deposit into the pool.
- Evaluate. In this example, I have ~5.6k BANK tokens which result in about $530USD. As a result, I will need 1/4 of $530USD in WETH, coming out to ~$132USD in Ether.
- Commit. Now you need to exchange for the right sum of WETH. This is 0.0313 WETH.
- Execute your WETH swap. To do this, go to the “Trade” tab and select the right token. In this case, you’ll need ETH → WETH. Once you’re ready, confirm your transaction on Metamask and obtain your WETH.
Disclaimer: I wrapped more ETH than necessary as a buffer for this post
Join the Liquidity Pool
Now it’s time to join the liquidity pool! First, you’ll want to make sure you’re in the right Balancer pool!
Now that you’re ready with your BANK and WETH, the steps are simple.
- Check. Ensure that you’re on the “Best price” option and you have the right amount of BANK and WETH in your wallet.
- Approve. You have to approve BANK and WETH tokens if this is your first time depositing. Click “Approve BANK” and/or “Approve WETH” which will prompt you to confirm a transaction in Metamask. There will be gas costs with this!
3. Invest. Once you have completed your approvals, the button will change to show “Invest ###”. Once again you will need to confirm a transaction in Metamask.
4. Settle. Once it is done, the dashboard will change to show that the transaction is completed and you have now joined the pool!
5. Verify. Go back to the main page at Balancer and you will see that you have your investment listed there!
That is all! Now you can put your BANK tokens to work and contribute to the stability of Bankless DAO’s liquidity too.
If you’re interested to learn more about this liquidity mining program in partnership with Balancer, you can read up on the original Snapshot vote here.
Let’s put your BANK to work!
Qing Ze is a Product Manager at Tribe and actively contributes to Bankless and GitcoinDAO. (twitter: @fishbiscuit)