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High Interest-Earning With ComethSwap

DeFi powered with yield generating NFTs ⚗️☄️

It’s all about the game, except when it’s not! While Cometh Battle is under its Alpha Testing phase, and we are all waiting for the balancing stage to be finished, feedback adopted, and Cometh Battle public version to be out — it’s a great time to explore the Cometh Universe through the voids fueled with the infinite power of DeFi.

Aside from the gaming aspect of Cometh, it is worth noting that Cometh managed to generate a complete self-sustainable ecosystem built with technologies of GameFI, NFTs, Decentralized Finance, allowing its players to monetize on multiple aspects of the project and its native token.

All of this is accomplished and situated on Polygon, L2 blockchain relieving Cometh’s users from Ethereum’s expensive fees and lowering the entry-level for new Cometh universe explorers, allowing them to experience the powers of passive rewards/income, play-and-earn, and NFTs!

But, let’s explain, term by term, focusing on WHY and how that might be good for you:

Many of you have heard the term Yield Farming, and for those of you who haven’t, this is the right moment to continue reading.

💥 Yield Farming is a practice leveraged by DeFi users trying to maximize rewards on their assets, using different methods such as liquidity providing, liquidity mining, lending, borrowing, and leverage. Rewards generated with Yield Farming are calculated daily, weekly, monthly, or yearly, depending on a protocol and method, thus generating passive income for users.

Speaking of ComethSwap, you can farm via a Liquidity providing/Liquidity mining strategy on different pools of assets.

So let’s see what, in essence, is Liquidity mining.

💥 Liquidity mining is one of the yield farming strategies where participants are allowed to provide liquidity (capital) to a liquidity pool on a Decentralized Exchange (DEX). It consists of 2 different strategies that people often substitute for one another: Liquidity Providing and LP Farming.

💥 Liquidity providing is done by depositing an equal dollar value amount of 2 or more tokens into the liquidity pool, for which new LP tokens are minted, representing your stake in a particular liquidity pool on DEX. As a reward, a recurring swap fee of 0.5% of each trade is collected and distributed among the liquidity providers based on the number of LP tokens they own.

💥 LP Farming, so you have provided liquidity and acquired LP tokens. Now protocols allow their investors / LP holders to double down on the incentive mechanism by depositing their LP tokens in farming pools. Depending on the protocol and provider, they are rewarded in native, governance, or other tokens, in this case, $MUST — Cometh’s native token.

Why is this important?

Liquidity mining is vital because a DEX needs liquidity to enable the trades between different token pairs, and this incentive strategy enables users to contribute liquidity to facilitate those trades. This means that most liquidity pools are between trading pairs where users can deposit the two different cryptocurrencies depending on the pool.

Liquidity provision is where a user provides liquidity to a trading pair and reaps the rewards from trading fees. So when a user swaps between the two tokens, a small fee is charged. This fee is where rewards for liquidity provision providers come from. You can imagine when several token swaps take place on a DEX that liquidity mining can turn into a great passive income opportunity for many.

Of course, every type of investment comes with a few risks behind it. In liquidity mining, the risk involved would be Impermanent loss.

💥 Impermanent loss essentially means that due to price fluctuations of the assets, there is a chance the liquidity provider would have earned more simply by holding the assets than depositing them into a liquidity pool. For example, if the price of $MUST moons relative to $MATIC, liquidity providers in the MUST-MATIC pool end up with larger portions of the less valuable asset ($MATIC in this case).

It is called impermanent, because as long as the relative fiat value of the tokens returns to its former ratio, the loss does not exist.

Now that we have covered the basic theory part, let’s jump to action and see how you can mine liquidity on ComethSwap

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How to Provide Liquidity & Farm on Cometh Swap

The pair we will be covering in this guide is $MATIC-$MUST, but the same procedure remains for all available pools on ComethSwap.

Step 1

Jump to ComethSwap and press “connect to a wallet.”

Step 2

Chose between the wallets supported on ComethSwap

Step 3

A small pop-up will appear on the right side of your screen. Press “connect”.

Step 4

After your wallet is connected, ensure that you are on the Polygon network, as ComethSwap is situated on Polygon. * If the Polygon network is not added to your wallet, jump here to check how to add it!

Step 5

After successfully connecting your wallet, ensure that you have an equal dollar amount of Matic and Must token. If you don’t, you can use ComethSwap to swap between the assets.

Example 👇

Step 6

Now because you have an equal dollar value amount of Matic and Must jump to the “Pool” section and press “Add Liquidity”.

Step 7

When you press Add Liquidity, you will be given a chance to choose a token pair and the amount which you want to input.

Select Matic — Must and choose the amount you wish to add.

  1. “Supply” an equal amount of tokens into the pool.
  2. Review your transaction and amount of LP tokens, then click “Confirm supply”.
  3. “Confirm” transaction within your MetaMask wallet.

Step 8

After you have supplied your tokens into the Matic-Must liquidity pool, your position will be visible on the pool dashboard.

Now let’s see how we will put these newly minted LP tokens to do a bit more work for us.

Step 9

Let’s move to the Farm section on ComethSwap and search for the MATIC-MUST participating pool.

Step 10

Click “Deposit” to deposit your LP tokens in order to earn rewards in $MUST token with 99% APY.

Step 11

Select the amount of LPs you want to deposit and approve LP tokens to be used by ComethSwap.

Step 12

Sign the approval within your MetaMask wallet pop-up.

Step 13

After your approval is signed, click “Deposit” to deposit your LP tokens inside of the participating pool.

Step 14

Confirm the transaction within your MetaMask wallet pop-up.

Step 15

Well done, you have successfully deposited your LPs into the MATIC-MUST Liquidity mining pool. Rewards and positions in the pool will be visible when you expand the MATIC-MUST pool.

Remember, the higher the stake of the pool you possess, the more rewards will be allocated.

Happy farming space frens!

Enjoy your rewards and remember to put those tokens to work for you — passive income is a terrific way of earning, and with ComethSwap on the Polygon network, you are spared the high gas fees of Ethereum.

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Disclaimer: this is not financial advice. Act accordingly and plan your investments wisely. Never forget to adapt your risk management and DYOR (do your own research) before investing!

Stay tuned for what is to come!

And don’t forget to follow us on socials & join community of players:

☄️ Twitter: https://twitter.com/MUSTCometh

☄️ Whitelist for the ComethBattle BETA: https://www.cometh.io

☄️ Follow the updates & engage: http://discord.gg/mcXn2R2QRx

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Quoletta

Quoletta

Cometh is a groundbreaking strategy game where players can win valuable tokens and that leverages the Decentralized Finance ecosystem