Introducing new PNT-farming strategies for pBTC and pLTC

pNetwork Team
Nov 23, 2020 · 7 min read
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In DeFi, there’s always a new yield farming opportunity — but rarely does one invite users from more than one blockchain. Now, thanks to pNetwork and its Ethereum-compatible pTokenized assets, users from Ethereum, Bitcoin and Litecoin communities can deposit and grow their yields on Steroids.

Steroids is a liquidity mining platform that offers unique yield farming strategies and exciting APYs. When users put their assets on Steroids, they not only streamline their liquidity pool deposits but also earn rewards in unlocked DeFi tokens.

Today pNetwork is extending the pTokens incentives program and introducing new PNT-farming strategies for both pBTC and pLTC.

Earn with the pBTC incentives program

pBTC is a Bitcoin-pegged asset available through pTokens, a cross-chain composability project and the foundation of the pNetwork ecosystem. With the custom-made pTokens dApp, anyone can securely mint their own pBTC — pegged 1:1 with BTC — or they can acquire it through a myriad of exchanges, DEX aggregators and wallets, like Bitfinex, 1inchExchange, Argent, Bancor, Dex.ag, dMEX, Eidoo, Loopring, MyEtherWallet, Kyber Network, Paraswap, and Trust Wallet.

A liquidity mining initiative is currently ongoing for pBTC, which rewards liquidity providers to the pBTC/WBTC pool on Uniswap. But initially, the initiative was only scheduled for 8 weeks.

Since its introduction, the program has contributed to boosting liquidity for pTokens BTC (pBTC), whose market capitalization grew by approx. 3.5 Million USD.

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With this in mind, a new pNetwork DAO proposal was advanced for the incentives on pTokens BTC to continue. Instead of allowing the pBTC liquidity incentives to expire, the DAO proposed to extend the program and to continue to offer PNT rewards for pBTC/WBTC Uniswap liquidity providers, while potentially extending the rewards to other liquidity pools (e.g. Curve, Balancer).

We’re excited to report that the proposal has passed.

pNetwork DAO members cast over 7.1 Million PNT and the proposal was approved with 88.32% of voters in favor.

An extension of the pBTC incentives program with PNT rewards for the Uniswap pBTC/WBTC liquidity providers will continue with no interruptions for an additional 8 weeks.

An amount of 50,000 PNT per week will be allocated towards the initiative and distributed as an incentive to liquidity providers contributing to increase the total value locked within the pTokens system.

With pBTC on hand, anyone can participate in this Yield Farming strategy by effectively staking bitcoin and earning PNT rewards.

Bringing pBTC to Curve

Separately, a new Curve governance proposal was advanced for pBTC to be added on Curve, an on-chain liquidity protocol optimized for exchanging stable assets (for example DAI and USDC). Counting over 5.2 Million veCRV voting, the proposal was approved. The team is thrilled that the community supports bringing pBTC to Curve and we look forward to seeing it implemented.

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A new pBTC/[sBTC/renBTC/WBTC] metapool will be launched on the Curve platform with the goal of onboarding new BTC liquidity onto Ethereum. The new pBTC pool will be paired with the liquidity of the existing BTC liquidity pool, whose daily trading volumes are in the orders of Millions USD traded.

As a platform optimized for exchanging stable assets and with a proven track-record, Curve is a great tool for growing pBTC beyond its current size.

While initially, pNetwork’s liquidity mining rewards for pBTC will continue with no interruptions on the pBTC/WBTC Uniswap liquidity pool, going forward, an option is for incentives to be passported to the new pBTC pool on Curve with the goal of attracting additional liquidity into the system.

Introducing the pLTC incentives program

pLTC is a Litecoin-pegged asset available through pTokens. With the custom-made pTokens dApp, anyone can securely mint their own pLTC — pegged 1:1 with LTC — or they can acquire it through exchanges, DEX aggregators and wallets, like Bitfinex, 1inchExchange, Eidoo, Loopring, Kyber Network, Paraswap, and Trust Wallet.

Expanding the PNT-farming program beyond its current PNT/ETH and pBTC/WBTC Uniswap incentives, today we’re announcing a new liquidity mining strategy for pLTC.

With pLTC on hand, anyone can participate in the latest Yield Farming strategy by effectively staking litecoin and earning PNT rewards.

Through the pLTC liquidity mining program, users can become liquidity providers in Uniswap’s ETH/pLTC pool while earning rewards in unlocked PNT. Each week a reward of 15,000 PNT will be distributed and divided between liquidity providers.

Read on for step-by-step instructions on different ways to provide liquidity and become eligible for rewards.

Join pLTC liquidity incentives with ETH

Become a liquidity provider and participate in the ETH/pLTC liquidity pool by depositing ETH on steroids.finance.

Connect your wallet to Steroids.finance and navigate to “Earn.”

Here you’ll find the available strategies to provide liquidity for rewards. This dashboard will continue to update as new strategies are launched — each with unique configurations and protocols. In this case, the pLTC / ETH strategy will be active as a trial for the next 4 weeks.

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Deposit ETH into the incentivized pLTC/ETH Uniswap pool

Select the incentivized pLTC/ETH Uniswap pool that indicates ETH as the asset to enter. Steroids simplifies the process of providing liquidity to the pLTC/ETH Uniswap pool by automatically splitting your deposit equally among the two assets in the pool. This means you only need one token to enter the strategy: ETH. Insert the amount of ETH you want to provide to the Uniswap pool and click “Stake ETH.”

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Claim your PNT rewards, and unstake when you’re ready

While your ETH/pLTC tokens are in the Uniswap pool, you’ll receive weekly rewards in PNT (pNetwork token). The percentage varies based on the number of participants in the pool.

Rewards can be claimed at any time by clicking “claim.” Alternatively, you can exit the strategy and simultaneously claim your rewards by clicking “unstake and claim rewards.”

Join Steroids with UNI-V2

Uniswap liquidity providers who want to independently join the pLTC/ETH Uniswap pool are still able to benefit from the incentives program by joining Steroids with their UNI-V2 (representing the relevant pLTC/ETH Uniswap pool). This option is ideal for more experienced DeFi users who already hold both LTC and ETH or who wish to enter the Uniswap pool with large amounts.

Here’s how to join Steroids with UNI-V2:

Navigate to the pLTC/ETH liquidity pool on Uniswap.

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Select “Add Liquidity” and deposit 50% pLTC and 50% ETH.

Two assets in equal shares are required to provide liquidity directly on Uniswap. Once you provide liquidity, you will receive a UNI-V2 token, which represents your share of the pool.

Connect your wallet to Steroids.finance and navigate to “Earn.”

Select the Incentivised pLTC/ETH Uniswap pool that indicates UNI-V2 as the asset to enter. “Stake UNI-V2” to ensure your eligibility for the rewards program. Now you can farm PNT and manage your rewards.

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Claim your PNT rewards, and unstake when you’re ready

While your ETH/pLTC tokens are in the Uniswap pool, you’ll receive weekly rewards in PNT (pNetwork token). The percentage varies based on the number of participants in the pool.

Rewards can be claimed at any time by clicking “claim.” Alternatively, you can exit the strategy and simultaneously claim your rewards by clicking “unstake and claim rewards.”

Join Steroids on Eidoo

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Thanks to a direct integration of pTokens, Eidoo users can provide liquidity and earn rewards without ever leaving their mobile wallets.

Risk Management

Uniswap liquidity pools are always composed of two pairs. When joining the pLTC/ETH Uniswap pool via Steroids and depositing ETH, half of the amount is automatically converted into pLTC (with pLTC tokens bought at market price through the same Uniswap pool). As a result, liquidity is provided to the pool with a balanced 50/50 proportion of pLTC and ETH.

Please note that when interacting with Uniswap liquidity pools you may be subject to “price impact” (or slippage) — this is the difference between the market price of a token and the estimated price applied by the pool. When joining the program with ETH, your transaction may be subject to slippage.

As a general rule:

  • The larger the amount involved, the greater the price impact.
  • The larger the pool, the smaller the price impact.

A best practice before joining a Uniswap pool is to assess the price impact of your transaction. When joining the pLTC/ETH strategy on steroids.finance via ETH the price impact of your transaction is displayed in the slippage section.

An option to reduce slippage is to join the Uniswap pool by providing liquidity in balanced 50% pLTC and 50% ETH amounts, then joining the Steroids program with the relevant UNI-V2 strategy on steroids.finance (see above: “Join Steroids with UNI-V2”).

🦜 Want to join our flock? Connect with us on Twitter and join the conversation in our pNetwork Telegram.

💡 For a more technical deep dive into pTokens infrastructure, read our technical paper or check out the summary on our website.

🔗 For any blockchain project looking to integrate pTokens into their infrastructure, we have also built a pTokens JS library.

💌 Excited about pNetwork? Sign up for our newsletter and be the first to know which blockchain pTokens will make their home in next.

pNetwork

Enabling cross-chain DeFi composability

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