Pendle + KyberSwap Liquidity Mining Rewards
The PENDLE — ETH KyberSwap Elastic Pool is now live!
As a celebration of this joyous union (and in the spirit of Christmas), $20,000 worth of KNC and PENDLE will be made available for all liquidity providers for this pool.
That means you’ll have the opportunity to earn additional rewards, on top of the existing swap fees.
But farmooors, make haste while the sun shines as rewards are currently available from 15 December 2022, 14:00 UTC until 16 January 2022, 13:59 UTC.
Read on to learn more about the KyberSwap Elastic Pool and how you can be a part of this yield galore 🌾
Liquidity Mining Tutorial
Step 1 — Add Liquidity
To add liquidity, head to the PENDLE-ETH elastic pool on KyberSwap here. Click on ‘Add liquidity’.
Step 2 — Set Deposit Amount
Input the amount of PENDLE or ETH to deposit. The app will auto-populate the corresponding
amount of ETH required once you’ve typed in a number for PENDLE, vice versa.
Step 3 — Set Your Price Range
Here, you’ll need to set a custom price range to provide liquidity for. The price range can be adjusted by typing in specific values for min and max price, or by dragging the 2 blue sliders on the chart.
The liquidity supplied will be evenly distributed across the price range that you’ve selected, and you’ll be able to earn a fee for any swaps performed within that range. The amount of fees earned will be proportional to your share of liquidity at that price point.
Do note that you won’t earn any fees for swaps performed outside of your price range.
In this example, we will be setting the price range of PENDLE to 0.000031ETH — 0.000364ETH, a moderate concentration that strikes a balance between risk/reward for us.
Large / Full Price Range
Providing liquidity for a large price range or even the full price range (i.e. 0 to ∞) is a relatively safer play. You’ll likely earn less fees if the price remains stable, but this approach ensures that your position will remain active across most, if not all, price ticks.
Perfect for the conservative, passive LPs, or beginners new to liquidity provision.
Narrow Price Range
Providing liquidity for a narrow, concentrated range maximizes your earning potential when the price trades within range. But, you also run a much higher risk of the price falling out of your range, rendering your position inactive. Such an LP position usually requires active, constant management to get the most out of it.
Perfect for hands-on, veteran farmoors who embody the spirit of “high risk, high reward”.
Step 4: Confirm Liquidity Provision
Once you’re done with all the steps above, click on “Supply” and a summary of your total liquidity, current price and price range that you’ve chosen will appear.
When you’re ready, click on “Add” to supply liquidity. All of your positions can now be tracked on the “My Pools” page.
💡Important: Make sure that the fee tier remains at 1%, otherwise you won’t be able to earn any liquidity mining rewards
Step 5: Deposit Liquidity for Elastic Farm
If you want to maximize your earnings as an LP, you’ll need to deposit the PENDLE-ETH-LP that you just received into the Elastic Farm here.
Doing so lets you earn additional liquidity mining rewards on top of the swap fees, but you’ll have to hurry since the rewards are currently set for 1 month (see above).
To start, simply click on “Approve Farming Contract” followed by the “Deposit” button. Select your Liquidity Position you’d like to deposit.
Step 6: Stake Liquidity into PENDLE-ETH Farm
Last step here! Look for the PENDLE-ETH farm and click on ‘Stake’ to start earning the liquidity mining rewards.
Step 7: Harvest Rewards
When you’re ready to collect your rewards (which will be in a mixture of PENDLE and KNC), click on Harvest All and that’s it!