How to Deposit Collateral into Levana Beta: A Comprehensive Guide
Introduction:
If you need help, jump into the Telegram group #beta topic: https://t.me/levanaprotocol/30438
Disclaimer: Yield fluctuates frequently, estimated yield on testnet will be different than yield on mainnet
In this guide, we will walk you through the process of depositing collateral into the Levana Beta, a decentralized derivatives exchange built on the Osmosis Zone in the Cosmos network. Depositing collateral into Levana allows you to earn yield by providing liquidity to the platform. The more liquidity, the more trading, and the more fees.
Prerequisites:
Before starting, ensure you have the following:
- A computer with an internet connection
- Access to the Levana beta website (https://beta.levana.exchange)
- A Keplr wallet with testnet funds (Refer to the first tutorial for instructions on getting testnet funds here)
Step-by-Step Guide:
Step 1: Connect your wallet
Visit the Levana Beta website and connect your Keplr wallet. Make sure your wallet contains testnet funds.
Step 2: Navigate to the Earn page
Click the “Earn” button on the top navigation bar of the Levana Beta website once your wallet is connected.
Step 3: View your current deposits
On the “Earn” page, you’ll see the total amount of ATOM you’ve deposited in USD. Click “Manage” to view your xLP and LP tokens and your current withdrawable yield.
Step 4: Deposit collateral
Click “Deposit” to choose between depositing into the LP pool or the xLP pool. The LP pool has no unlock period, while the xLP pool offers greater rewards, a 90-day unlock period, and protocol emissions of Levana’s governance token (LVN) in addition to the real yield paid in ATOM.
In this tutorial, we’ll deposit to both pools. Depositing to pools is single-sided staking and has no impermanent loss. First, deposit ATOM into the LP pool by sliding the slider or typing the amount in USD or ATOM, then click “Deposit.”
After the transaction confirms, deposit it into the xLP pool. You’ll notice that the rewards are roughly double those received through LP tokens. Use the slider to select the amount to deposit into the xLP pool and click “Deposit.”
Step 5: View charts
Review the five charts on the Levana Perps Beta platform to understand the network’s state:
- LP APR: Shows historical rewards in terms of percentage APR for depositing into the LP Pool.
- xLP chart: Displays the same information but for deposits into the xLP pool.
- TVL chart: This shows the total liquidity deposited into the testnet beta for the ATOM market.
- Delta Neutrality Ratio: Indicates the ratio between the net open interest and the liquidity pool size.
- Collateral Utilization: Displays the target collateralization ratio and historical collateralization.
Step 6: Withdraw your yield
Levana offers three options for withdrawing your funds:
- Convert xLP Tokens to LP Tokens: Start a 90-day unlock period.
- Withdraw Your Yields Only: Keep your LP and xLP positions and only withdraw the profit earned from providing liquidity.
- Withdraw LP and Yield: Select the amount of LP tokens plus the yield earned and withdraw to your wallet.
Step 7: Reinvest your yield
Reinvest your rewards by clicking the “Reinvest Yield” button. Select the amount to reinvest and choose between LP tokens or xLP tokens.
Step 8: Review your earnings
Navigate to the “History” page to review your earnings. You’ll see your earn summary and earning history, which details your deposits and yield withdrawals.
Conclusion:
Following this comprehensive guide, you can deposit collateral into the Levana Beta and earn yield.
Stay tuned for future tutorials to learn how to use Levana Perps, and don’t forget to sign up for the upcoming trading competition on https://for a chance to win fabulous prizes.
If you want to learn more about the platform or get more walkthroughs, you can join the Levana Perps Telegram group at https://t.me/levanaprotocol and follow Levana on Twitter https://twitter.com/Levana_protocol
