[Updated] SparkDeFi #AtAGlance: What is Liquidity Staking (Farm)?
And how to earn from these pools
Staking using cryptocurrency is one of the methods to gain more rewards using digital assets. This is the reason why liquidity staking made a name in cryptocurrency mining and trading. It allows purchasing and permits the user to hold cryptocurrency that guarantees profits and rewards.
Necessarily, the changes brought by cryptocurrency are adapted and practiced in this modern world. Cryptocurrency technology illustrates and exposes the borderless distributions of a blockchain product. Related to this is the occurrence of Proof of Stake (PoS) coins that the user can earn without having the Proof of Work (PoW).
Yield farming is a recommended practical and functional use case in DeFi. Knowledge can also be gained from participating in this activity. For instance, in liquidity staking, users can learn about different decentralized finance protocols and supported cryptocurrencies.
In this article, we’ll equate Liquidity Staking app as “SparkPool Farm.”
For example, you can provide liquidity to an SRKb-BNB pool at SparkSwap and a special “Spark Liquidity Provider (LP)” token will be minted to your address. These Spark LP tokens represent the percentage of your share in the pool, and whenever trade occurs on that pool, you’ll get a portion of the transaction fee based on your percentage of share in the pool.
Here’s a tutorial video on how to provide liquidity to the SRKb-BNB pool.
Additionally, you stake Spark LP tokens to SparkDeFi and hold it in a certain period and you’ll be rewarded with SRKb rewards based on the rate and amount of Spark-LP tokens you have staked. You have the freedom to do whatever you want with your SRKb reward. But one thing I can recommend to grow your rewards, even more, is to look for another pool where SRKb is one of the pair, use your earning as liquidity and stake!
The procedure are almost similar in concept to other tokens paired with BNB or BUSD on SparkPool Farm. You’re just going to do it with an active pool within the SparkDeFi dapps. Make sure also that the token paired to BNB or BUSD is added to your MetaMask Wallet so that the token balance will appear and is set to Binance Smart Chain (BSC).
Here’s a complete walkthrough on how to participate:
These tokens have various reward rates, annual percentage rates (APR), and different timelines. Some liquidity pools are active for 60 days, 90 days and the longest we have is 120 days.
The list will continue to grow on the following months. There are projects already in the process of onboarding the platform and just awaiting finalization.
The Liquidity Staking feature of SparkDeFi is just one of the many ways on how the community could earn with their existing tokens especially when they’re holding SRK tokens in their wallets. The list of liquidity pools will soon grow, helping our partners disseminate their tokens to the mass at the same time by rewarding the community.
In our next issue, we will be talking about Pool-Based Staking. Another feature of the SparkDeFi platform where staking is simplified and can be done in just a few steps.
Apply for a staking pool for your project! Fill up the form and let’s talk about business!
Learn more about SparkPoint and SparkDeFi from the following links:
Telegram Announcements (SparkPoint): https://t.me/sparkpoint
Telegram Announcements (SparkDeFi): https://t.me/SparkDeFiOfficial
SparkPoint Community on Telegram: https://t.me/SparkPointOfficial
SparkDeFi Community on Telegram: https://t.me/SparkDefi
SparkPoint Twitter: https://twitter.com/sparkpointio
SparkPoint Facebook: https://facebook.com/sparkpointio
SparkPoint Instagram: https://instagram.com/sparkpointio
SparkDeFi Twitter: https://twitter.com/SparkDeFi
SparkDeFi Facebook: https://www.facebook.com/SparkDeFi
SparkDeFi Instagram: https://www.instagram.com/sparkdefi/
SRK on CMC: https://coinmarketcap.com/currencies/sparkpoint/
SFUEL on CMC: https://coinmarketcap.com/currencies/sparkpoint-fuel/