BEAMX Yield & Liquidity Farming Guide
(Version July 19th 2023)
Introduction
Beam (beam.mw) is the most advanced Proof-of-Work (PoW) Layer-1 privacy blockchain, where all transactions are concealed by default and no information about the sender, the receiver or the amount is visible on-chain.
The management of the development of the Beam platform is currently transitioning from the non-profit Beam Foundation (www.beam-foundation.org) towards a BeamX DAO (https://www.beamxdao.org).
Moreover, Beam’s Confidential Assets (privacy tokens), privacy-preserving Smart Contracts and Decentralized Apps (DApps) have recently opened the path to building the ultimate Privacy DeFi (PriFi) experience.
To bootstrap this new PriFi ecosystem, the BeamX DAO decided to reward participants who bring liquidity and stability to certain key elements of the system during the next two years.
This guide explains how to participate and take advantage of these rewards.
What is BEAMX?
BEAMX is the Governance token for the Beam PriFi Ecosystem. $BEAMX is mainly used for voting on BeamX DAO on-chain decision proposals by staking it through the voting DApp.
Just like $BEAM itself (and all the other Confidential Assets on Beam blockchain), all BEAMX transactions are completely private and untraceable.
The total supply of BEAMX is fixed at 100,000,000 tokens that were minted during the DAO launch in 2021. At that time, the BeamX DAO held a three-month promotional staking program that required locking BEAM tokens risk-free in order to farm some BEAMX. A total of 1,000,000 BEAMX tokens (i.e. 1% of the total supply) were distributed during that program.
Now that the Beam PriFi Ecosystem is up and running, the BeamX DAO has decided to distribute more BEAMX tokens to those helping strengthen some of the ecosystem’s main building blocks.
We will explain in this guide the options currently available for “Farming BEAMX”.
IMPORTANT NOTE: The asset id of BEAMX on the mainnet chain is Id 7. The asset id is the only unique identifier of a Confidential Asset. While other metadata, including asset name and symbol, may be duplicated, the asset id is the one you need to check to make sure you are trading the correct asset (and not possibly a fake one). Always look for BEAMX (7) when making trading decisions.
Where can I buy BEAMX?
BEAMX can be acquired on the Beam DEX (Decentralized Exchange). There are several pools available, the most notable being the BEAM / BEAMX pool.
To check the price dynamics and many other stats of the Beam DEX you can visit BeamAssets.com, a community-maintained resource that provides detailed information about all DEX pools and trades.
See the following images for an example of buying BEAMX with BEAM using the DEX DApp.
Farming BEAMX
Currently, there are two main ways to farm the BEAMX token:
- Providing and locking liquidity to the DEX BEAM / BEAMX Liquidity Pool (the one with 1% fee tier).
- Providing Nephrite stablecoin tokens (NPH Id 47) to the Nephrite Stability Pool.
1) Providing liquidity to the BEAM / BEAMX pool
Like in most Automated Market Maker (AMM) based Decentralized Exchanges (DEX), liquidity providers for any liquidity pool (LP) receive “LP tokens” that represent their share of that liquidity pool. Those tokens entitle them to a proportionate share of the pool’s trading fees (which are automatically added to their liquidity position after each trade).
The following images illustrate how to add liquidity to the BEAM / BEAMX pool. Please remember that an equivalent value of both tokens must be provided. The needed proportions will be automatically computed.
To further incentivize the liquidity providers for the BEAM / BEAMX pool (and soon also the BEAM / NPH and BEAMX / NPH pools too), the BeamX DAO decided (by a DAO vote on epoch 18, in March 2023) to create a farming program that distributes BEAMX tokens in exchange for locking these specific LP tokens into the farming contract for periods of time ranging from 1 up to 12 months. Thus, 6,000,000 BEAMX tokens (i.e. 6% of the total supply) will be distributed this way over the next two years.
The LP token for the BEAM / BEAMX pool is called AMML (Id 50), indicating that the asset Id of this specific LP token on Beam chain is 50 (other LP tokens will have the same name, but different Id).
To lock the LP tokens, you must open the “Beam Liquidity Mining” DApp in the wallet DApp Store. Enter the desired amount of AMML (50) tokens you want to lock and the lock period.
IMPORTANT: As long as your LP tokens will be locked, you will not be able to retrieve the BEAM and BEAMX tokens you added to the Liquidity Pool.
Once the transaction is confirmed you will see the number of BEAMX your farm increase each day.
A “Claim” button will allow you to claim these rewards at any time (although the LP tokens are locked for a period of time, the BEAMX rewards are not). You can create as many farming positions as you want, each with a different lock period.
IMPORTANT: The longer the lock period, the higher the amount of BEAMX received. For instance, an AMML (50) token locked for 12 months will receive double the amount of $BEAMX each day than if it was locked for 6 months only.
2) Participating in the Nephrite Stability Pool
Nephrite NPH (47) is a confidential overcollateralized stablecoin pegged to the US Dollar. It uses Collateralized Debt Positions (CDPs) to ensure that 1 NPH = 1 USD at all times.
IMPORTANT: To get more information about the Nephrite project, and how to install and use the DApp, please read the Nephrite Manifesto and the Nephrite User Guide hosted by the BeamBots project.
One of the key mechanisms in Nephrite is the Stability Pool in which users can stake their NPH tokens, which could be used by the system to liquidate undercollateralized positions in case of emergencies, such as a rapid decline of the collateral price.
To incentivize staking in this stability pool, the BeamX DAO decided (by a DAO vote epoch 18, in March 2023) to allocate 6,000,000 BEAMX tokens (i.e. 6% of the total supply) to be distributed to the stability pool participants over the next two years.
To stake your NPH (47) tokens, open the Nephrite DApp in the wallet DApp Store and go to the Stability Pool.
Once you have staked your NPH tokens there, you will see the number of BEAMX you farm increase each day.
A “Claim” button will allow you to claim these rewards at any time. Neither the NPH tokens nor the BEAMX rewards are locked. You can thus add or remove NPH tokens whenever you want.
That’s it for the two options currently available to farm BEAMX and get rewards for bringing liquidity and stability to the Beam PriFi Ecosystem.
Happy Confidential BEAMX Farming!
If you need help or have questions, please join one of Beam’s social channels, and in particular Telegram or Discord.
🤝 Acknowledgments:
- Alex Romanov, CTO of Beam Privacy, for authoring the original article.
- DB @dbadol, Beam community member, for making adjustments and providing feedback.
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