How to set up Sylo Liquidity Mining
Provide liquidity for SYLO on Uniswap, head to our dashboard and start earning rewards today…
As a precursor to this article, make sure to read the Sylo Network Incentivisation Plan. In this plan, we outline the three phases that Sylo will progress through on our way to a fully incentivised network model, of Liquidity Mining, is the first.
If you’re reading this, then welcome to Phase 1 — Liquidity Mining.
What’s exciting about this phase is that it provides Sylo Token holders a great opportunity to stake their passive SYLOs, whilst increasing liquidity for the Sylo Token on Uniswap.
‘Liquidity’ is the availability of liquid assets and in this case, refers to the availability of Sylo Tokens on the Uniswap platform.
As a thank you to all Sylo Token holders who provide liquidity for the Sylo Token on Uniswap, we have created what you will next learn how to set up — Liquidity Mining.
[If you don’t know what Uniswap is, check out this great beginner’s guide here.]
Running through our specially created Liquidity Mining dashboard, this initiative will enable Sylo Token holders to earn rewards by staking their Uniswap Liquidity Provider tokens (LP) in our smart contract.
Rewards will be paid out in SYLO at the end of each epoch (one epoch = one week) and we have a total of 125,000,000 SYLO to disperse as rewards to Liquidity Providers over the next six months
Sound like something to get excited about? It is.
HOW TO GET SET UP
First off, if you would like to provide liquidity to the SYLO pool on Uniswap, you will have to provide both tokens in each pair — for eg, ETH and SYLO or wBTC and SYLO.
This is because Uniswap is ‘symmetric’, meaning that you can only provide an equal amount of each token to the pool. So before you begin, make sure you have an equal value of both.
There is no technical minimum to how much liquidity you can provide, but there is a practical minimum. For example — adding $1 of liquidity is not practical if it costs you $20 in transaction fees. We trust you to make your own choices about what minimum is practical for you.
[If you’re looking for more ETH or wBTC, here’s a refresher on how to purchase crypto inside your Sylo Smart Wallet. For the Sylo Token (SYLO), head to KuCoin, Gate.io, Bittrex Global or Bitbns.)
Then, once you have your tokens of each pair, you’ll need to go to Uniswap and complete their process to provide liquidity.
If your mobile device is an Android, you can do this by navigating to Uniswap from the Web3 Browser within your Sylo Smart Wallet.
HOW TO PROVIDE LIQUIDITY ON UNISWAP
- Navigate to one or both of the below pages, depending on whether you would like to provide liquidity for:
ETH-SYLO, or
wBTC-SYLO. - Connect your wallet.
- Enter equal amounts to supply.
- Click ‘Add Liquidity’ to put up the two assets at a 1:1 ratio, then confirm.
After the transaction goes through, you will then receive LP (Liquidity Provider) tokens of the corresponding pool type in exchange for your underlying tokens.
So for example, if you put up ETH and SYLO, you will get ETH-SYLO LP tokens.
TIP: Sometimes transactions fail. Typically, increasing slippage tolerance will prevent this. Make sure to learn about failed transactions here in order to be best prepared.
WHAT ARE LP TOKENS?
LP tokens represent a share of a liquidity pool and can be exchanged for that percentage of underlying tokens. You can turn your LP tokens back into the underlying tokens at any time by hitting the ‘Remove’ button (you can also add more underlying assets at any time by hitting the ‘Add’ button).
HOW TO SET UP LIQUIDITY MINING IN THE SYLO DASHBOARD
- Once you have your LP tokens, navigate to the Sylo dashboard on our website.
2. Select the ‘Connect Wallet’ button.
3. Select your preferred wallet (the wallet should be the same one you used to provide liquidity) and follow the connection instructions.
4. Finally, once you have staked your LP tokens, you will be able to see the information you need on the dashboard about the staking pool, such as the total amount staked and how much the epoch will pay out when it finishes.
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REWARDS & WITHDRAWALS
There will be a designated amount of SYLO given out as a reward per epoch — eg, 20,000. You may remove your stake from the pool at any time or begin staking at any time, but your stake must be part of the pool at the end of the epoch in order to receive the reward. Similarly, if you enter the staking pool halfway through the epoch, you will only receive half the reward.
The reward for each epoch will be split proportionally between all staked parties in the pool, in relation to the amounts they have staked. Ie, the bigger the stake, the bigger the percentage of reward earned.
If you would like to remove your tokens from Uniswap, first you must withdraw your LP tokens from the Sylo dashboard and take them to Uniswap. Once you have completed the Uniswap liquidity cash out process, you will receive your tokens back.
EASE OF ACCESS
You can check on your stake and the state of the staking pool at any time by visiting the Sylo dashboard via desktop or mobile device.
As part of this release, we have integrated WalletConnect to the Sylo Smart Wallet, a piece of functionality that enables you to connect your wallet address to the Sylo dashboard, directly from your mobile device.
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We hope that you enjoy this new initiative, and as always, if you have any further questions or comments about Sylo Liquidity Mining, staking, or the Sylo Smart Wallet, we would love to hear from you.
Send your queries to our team now via DM on Twitter or Telegram.
Experience the Sylo Smart Wallet now by downloading from the Google Play or Apple App stores.
For further announcements, follow Sylo on Twitter, Telegram or visit www.sylo.io
