Earn Massive Rewards With Sushi Swap on Harmony
A Sushi Swap-on-Harmony liquidity mining tutorial
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Harmony Protocol recently announced $4 million in incentives coming to Sushi Swap, with rewards being split evenly between liquidity mining and Kashi lending. In both cases, $1 million in ONE tokens and $1 million in SUSHI tokens will be provided to fund the incentives.
The details of Kashi rewards are slated to be released in July, so today, we’ll focus on liquidity mining.
The most important thing to note about the liquidity mining incentives is that the rewards will be spread over 12 months and be heavily front-loaded, with 50% of rewards being distributed during the first 3 months. That means the rewards will be most in the beginning, when funding is least, i.e., you have the chance to earn a larger percentage of the largest rewards.
The liquidity mining incentives are scheduled to start on June 30, which means it’s time to MOVE! In this story, I’ll provide you with the information you need to participate in liquidity mining with Sushi on Harmony.
What is liquidity mining?
I know you’re probably really excited about the opportunity, but let’s take a breath and make sure you know what you’re doing. Liquidity mining is an activity that rewards users for providing assets to liquidity pools, which enables the platform’s other users to swap assets.
In most cases (and Sushi is no exception), you provide liquidity by depositing equal amounts of asset pairs — for example, equal amounts of ONE and ETH. When another user wishes to exchange ONE for ETH or ETH for ONE, the platform deposits and withdraws from the corresponding buckets. As a reward for providing liquidity, liquidity providers receive a share of fees collected proportionally to their share of the entire liquidity pool.
Liquidity mining enhances rewards earned from fees by paying bonus rewards to users who provide liquidity to specific pools.
Therefore, liquidity mining is a two-step process. First, you provide assets to liquidity pools to receive liquidity pool (LP) tokens — think of these like your coat-check ticket. Then, you stake the LP tokens to begin accumulating the additional rewards.
Get assets on Harmony
To provide liquidity and participate in liquidity mining, you need assets on the Harmony blockchain. I will provide you with three different ways to do this, each of which has its own advantages & disadvantages. What’s best for you will likely depend mostly on where you keep the assets you want to use.
The easiest way to get funds onto the Harmony blockchain is to deposit them to a ONE wallet. I’ve done this by purchasing ONE on BinanceUS and withdrawing. However, I’ve heard of people being unable to withdraw their ONE from Binance & BinanceUS on more than one occasion. This is the cheapest and most straightforward way to get the job done, but if you happen to find yourself blocked, you may need an alternative.
Luckily, Harmony has an Ethereum bridge. The bridge allows you to transfer assets from your Ethereum (MetaMask) wallet to Harmony. It’s easy and works well, but you have to pay Ethereum gas fees, which can be expensive. The Ethereum fees get worse if you need to swap for the tokens you which to transfer. Swapping ETH to ONE and then bridging the resulting ONE would require a series of transactions, and it would cost a lot if gas fees were high.
The most reliable, low-cost way to move assets to Harmony is to use Harmony’s BSC bridge. If you’re already familiar with BSC, this will be no problem. For a new user, though, it takes many steps and can be difficult to understand. I’ve written this article, which may help.
Regardless of which method you use, keep in mind that you’ll need the native token of whichever blockchain you’re transacting on to pay fees. If you’re using the Ethereum or BSC bridges, you’ll need ETH or BNB, respectively. And once you’re on Harmony, you’ll need ONE.
Earn rewards!
With assets on Harmony, you’re ready to start collecting rewards. (If this is your first time transacting on Harmony, get ready to live.) As I mentioned before, earning from liquidity mining is a two-step process: providing liquidity and stake the LP tokens. You need to do a little extra work before you can do that, though; you need to know which liquidity pool to deposit your assets.
I suggest you start by looking at Sushi’s Farm tab. This will show you the approximate rates of return, rewarded in which tokens, for which asset pairs.
Once you decide which farm you’d like to participate in, head to the Swap section. I find it easiest to start from a common token and convert equal amounts of each asset of the pair. It won’t be exact, but it’s a good approximation. (For a more accurate estimate, visit the Pool tab first.)
Provide liquidity by depositing equal amounts of the tokens on the Pool tab. Just click Add Liquidity and deposit away. When the transaction is complete, you’ll receive SLP (Sushi Liquidity Pool) tokens in return.
And that takes us to the final step. Click back to the Farm tab, find the farm that matches your SLP token, and stake it. You’ll begin earning rewards almost immediately, and these rewards can be harvested as often as you like.
Conclusion
I still remember the first time I transacted on Harmony. I thought to myself, “Wow, this is how blockchain should be.”
Similarly, when I first used Polygon, I remember thinking, “Damn — this feels like Harmony on Ethereum.”
And when Sushi Swap launched incentives on Polygon, I was so excited to be able to earn both MATIC and SUSHI rewards.
Now we’ve come full circle with ONE & SUSHI incentives coming to Sushi Swap on Harmony. Harmony is so fast and so cheap — faster and cheaper than Polygon or BSC. Sushi Swap is a great addition to the ecosystem, and their cross-chain presence is getting stronger each week.
I can’t wait to learn what comes next for Harmony and Sushi, with $2 million in Kashi rewards and BentoBox coming soon. If you haven’t given Harmony a shot — try it. Unlike Ethereum or BSC, you can experiment with just a few dollars. It’s a truly wonderful experience, and incentives provided by Sushi Swap can make it quite lucrative, too.
