Uniswap Liquidity Mining Campaign for OCC/ETH — Now Live!
Remember — You can add liquidity to our pool starting now, but you will need to wait until the first epoch begins on Tuesday 1st June at 10AM before distribution begins.
A few weeks ago, we announced that OCC liquidity mining would soon arrive to the Occam.fi ecosystem. With the release of Uniswap V3, we required some extra time to introduce this feature, but now we are pleased to bring you live liquidity mining! Our OCC/ETH pool is on Uniswap V2. After careful consideration, we decided that V2 was a better option at this time, and we will move to V3 when it becomes stable and requested by our community.
The following article will give you a step-by-step guide to this process. We recommend you read the entire article, but if you want to get started quickly, skip ahead to our guide (Part 5).
A short note on Liquidity Mining using OCC tokens — any token you use to mine liquidity cannot be simultaneously used for OCC staking. This is to provide our community with a flexible risk/return profile, at your choosing!
1. What is liquidity mining?
Uniswap liquidity provision allows participants to provide liquidity to the OCC/ETH Uniswap V2 pool. This is essential to ensure that adequate trading liquidity exists for the OCC token. As a result, we are now happy to introduce the upcoming Uniswap Liquidity Mining campaign!
The purpose of this campaign is that in return for providing liquidity to our OCC/ETH Uniswap liquidity pool, participants will receive OCC-denominated liquidity mining rewards. In order to be eligible, one needs to stake Uniswap liquidity tokens in Occam.fi’s Uniswap Liquidity Mining interface.
Why would anyone wish to do this? Well, that’s simple. If you are here to be a part of the Occam.fi community in the long-term, and you are holding some OCC, there is now a way to diversify your yields with different streams of rewards.
2. Are there risks to liquidity mining?
Yes. Please note before we go any further, that there are some risks associated with liquidity mining. These include, for example, the risk of impermanent loss. You should read about impermanent loss here or here. Do not proceed without first understanding the concept and risk of impermanent loss.
Please be sure to do your own research and due diligence when deciding if liquidity provision is right for you. We will include some links within this article to resources which will assist your understanding of liquidity provision mechanics.
Let’s start by discovering the role of Uniswap liquidity tokens.
3. What are Uniswap Liquidity Tokens?
You will need to stake Uniswap liquidity mining tokens in order to generate rewards from liquidity mining. We will address this process in the step-by-step below. But first let’s examine what they are.
A Uniswap liquidity token represents the owner’s share of a Uniswap liquidity pool, such as the OCC/ETH pool. They are used for many purposes, most important of which are — determining one’s claim on a pool’s assets, determining trading fee distributions, and enabling liquidity mining. In short, Uniswap liquidity tokens are ERC-20 tokens that are used to represent and be exchanged for your share of a Uniswap liquidity pool.
Another thing you may wish to understand before you start, is how many rewards one is entitled to for providing Uniswap liquidity. Let us explain the mechanics below.
4. Calculating your rewards
So, how are Uniswap liquidity mining rewards determined? First off, let us introduce the concept of epochs. Epochs are arbitrary time periods (to be announced in advance by the Occam.fi team) for which we set Uniswap liquidity mining parameters. The key parameter is the number of OCC tokens distributed over all current stakers during the epoch. In each epoch, the OccamDAO provides a certain predetermined amount of OCC which will be allocated to liquidity providers as liquidity mining rewards.
The rewards are distributed each second, on a pro-rata basis. An amount of OCC (subject to change between epochs) is generated per second and provided pro-rata to all stakers — split across everyone that has staked in proportion to the amount they stake.
The time lock for implementation change of Uniswap liquidity pool parameters is 6 hours . This means that if we decide to make changes to the pool they will take effect 6 hours after we make them.
We highly recommend you read our upcoming beginners article on liquidity mining if you are entirely new to this concept. We will be sharing this article shortly!
5. Step by Step Guide
The process is conceptually challenging to grasp from the first glance, but really, there are only a few simple steps to participate in liquidity mining.
Step 1 — Buy OCC or ETH!
You must have OCC or Ethereum in your Metamask wallet to proceed. You can buy OCC by following the ‘Buy OCC’ button on Occam.fi, or you can buy ETH through your Metamask or an exchange of your choosing. Once you have some funds (and you have also accounted for the gas you’ll need to stake), proceed to step 2!
Step 2 — Go to the OCC Panel, connected your wallet, and click ‘Uniswap Liquidity Mining’
Your total balance should show as zero before you provide liquidity to the pool. Next, click ‘Add Liquidity to Uniswap OCC/ETH Pool’ — the large purple button shown in the screenshot above. This will take you through to the Uniswap liquidity pool.
Step 3 — Provide liquidity and get liquidity tokens
You will now be taken to the OCC/ETH pool on Uniswap V2. To provide liquidity here, you must deposit OCC and ETH to the pool. Enter the amount you wish to provide. Once you are happy, click the button at the bottom of the transaction and accept the gas fees to approve the transfer in Metamask.
Once the transaction has been approved, you can now add liquidity to the pool. Check everything is correct, and add liquidity. This will require approval in Metamask, and will cost you gas. Once the transaction is successful, you have provided liquidity. You will now receive the Uniswap liquidity tokens.
These are essentially your ‘receipt’ to show that you provided liquidity, and you may redeem them for your share of the liquidity pool at a later date. Now, head back to the OCC Panel.
Step 4 — Go back to the OCC Panel, and approve your liquidity tokens for staking
Click on ‘Approve Uniswap Liquidity Tokens’. A lightbox will appear asking you for final approval. Click ‘Approve’ and confirm the transaction in your Metamask. Gas fees apply. If succesful, you will see the following screen:
You are now ready to stake your liquidity tokens! Click ‘OK’. The ‘Approve Uniswap Liquidity Tokens’ will now change to ‘Stake’.
Step 5 — Stake your Uniswap liquidity tokens
Next, click ‘Stake’. Once again, a lightbox will appear confirming you want to stake your liquidity tokens, and asking you for the amount. Put in the desired amount, or click ‘Max’ as shown below.
Once you’re happy with the amount, click ‘Stake’. This will prompt a Metamask transaction confirmation. Confirm the transaction to proceed. This step will also cost gas. If succesful, you will see the screen below.
Click ‘Ok’ to go back to the OCC Panel interface. You will now start generating rewards.
Step 6 — Generate and claim rewards in OCC
Next, you will see the screen above. Your liquidity tokens will be staked, and your rewards in OCC will start generating. At this point, when you have enough OCC accrued in your ‘Avail. for Claiming’ section, you may wish to claim.
Click ‘Claim’. A Metamask transaction confirmation will appear. This step also costs gas, so you may wish to wait until your rewards are significant enough to offset your gas fee. Once confirmed, a lightbox will tell you how much OCC you have received — and that’s it!
Note — the APY shown above is strictly for testing purposes so we can quickly show you what rewards look like!
Also note! — Reward distribution begins on the 1st of June at 12:00 PM. Until then, APY and rewards will be zero. This is to give participants chance to enter the pool.
Follow Occam.fi’s social media channels to stay up to date with the latest news:
- Telegram Official Community — https://t.me/occamfi_com
- Telegram Announcements — https://t.me/occamfi
- Medium — https://medium.com/occam-finance
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