Five liquidity pools are launched on the YooShi’s Farm page: YOOSHI/BNB, SMON/BUSD, DXCT/BUSD, etc. Different liquidity pools will yield different token benefits. Currently, the liquidity pools on the YooShi’s Farm all display good returns, with APR (Annualized Percentage Rate) exceeding 200%, especially the SMON/BUSD pool, which has the highest APR 400% +.
Based on current APR, if you stake your assets to the SMON/BUSD pool, you can double your assets in less than 3 months. With the GameFi market just starting up, the future performance of YooShi and its incubated projects are more promising. Therefore, by participating in the liquidity mining on YooShi, you can continuously earn tokens, it is equivalent of a “fixed investment” with your earnings.
Then what is liquidity mining and how it works?
What is liquidity mining?
Liquidity mining of DeFi is a process that users deposit or borrow specified crypto assets as required, to provide liquidity to the product’s pool of funds to generate revenue. The source of liquidity pool earnings comes from platform’s token, governance rights, commission fees on borrowing/transactions, etc.
In a nutshell, liquidity mining is equivalent to earn interest in the bank. When the users no longer want to deposit, he can withdrawal the principal with the interest.
Playbook of liquidity mining on YooShi
Bitcoin and Filecoin mining require a tedious process of purchasing hardware, configuring software and network, whereas liquidity mining is much easier, you can make money in a couple of minutes. Let’s start the liquidity pool with the highest yield: SMON/BUSD.
First step, go to YooShi Farm page, click the top right corner “Connect the wallet”
Currently, the YooShi web version supports MetaMask, TokenPocket, MathWallet and other cryptocurrency wallets, users can choose according to his own usage habits.
Second step, select SMON/BUSD liquidity pool to stake(You can also choose other pools)
Third step,add liquidity to form LP of equal value of SMON and BUSD.
As shown above, if you enter 19.96 in the text box for BUSD, the system will convert it to the equivalent SMON , that is 7. At this moment, you need to stake 19 BUSD and 7 SMON to form a LP (Liquidity Pledge), an asset of total $14.
Click the button below to authorize BUSD and SMON separately, a small gas fee is required for each authorization as it requires a call to the smart contracts on the BSC chain.
Fourth step, stake
The YooShi platform integrates LP and Stake into the same page, so you do not need to open another interface, which is very convenient. After the authorization on BUSD and SMON, the green button will change to ‘Stake’ automatically.
After clicking and paying a small gas fee for another time, you have completed the entire staking process.
Fifth Step, harvest your yield
Once the stake is completed, you can view your stake status and real-time yield on the YooShi Farm page. Select ‘Harvest’, you can transfer the SMON income to your personal wallet.
Sixth Step, Unstake
If you’d like to withdraw your staked assets, you can choose “Unstake”. Please notice that when you unstake, we suggest that you choose “Remove liquidity at the same time”，in this way, the LP will be disassembled to BUSD and SMON and sent back to your wallet. Otherwise, the tokens returned to your wallet are always LP, you still need to remove liquidity.
The above is a guide to the liquidity mining operation for the YooShi Web version, the other crypto wallets, such as TokenPocket follows the same process and possibly more inconvenient. You can choose any liquidity mining pool according to your needs or your preferred tokens.
Frequently asked questions about the liquidity pool
- Why APR keeps changing?
The liquidity mining, essentially, takes the staked liquidity as “hashrate”, and generates mining revenue based on the percentage of hashrate. So as the volume of funds involved in the stake grows, your share of the hashrate becomes smaller and smaller, which will lead to a decrease in returns. However, when other funds are withdrawn from the stake, your hashrate will increase along with the yield. Therefore, the benefit in liquidity mining is not set in stone.
- What is the impermanent loss?
When a user cancels a liquidity stake, he may find that the crypto assets returned to his wallet will be slightly different from the amount previously staked. The reason is that the crypto assets staked are not locked up in the liquidity pool, but are involved in trading activities.
When the SMON price rises, to balance the price of SMON in the liquidity tool, someone will employ arbitrage. In the end, the SMON price will remain the same with the market, but due to constant product market maker, the number of SMON in the original liquidity pool will decrease and the number of BUSD will increase. And the number of SMON and BUSD you originally staked will also show a decrease in SMON and an increase in BUSD. But the SMON price has increased, after the comparison, you will find that if you haven’t staked SMON in the liquidity pool, you would have earned more, and the difference between the earnings is the impermanent loss.
Under normal circumstances, when the market is more volatile, the larger the risk caused by the impermanent loss. Since the liquidity mining on the YooShi platform yield substantial gains, the impermanent loss will be somehow compensated.
- What other risks does the liquidity mining have?
Other risks of liquidity mining are often risks inherent in liquidity pools, such as withdrawal of pools by bad project parties, small contract security and other issues. But YooShi has locked up the liquidity pool, no one can control the assets in the liquidity pool. In addition, YooShi and its incubated Blockchain games pay close attention to code security, all the codes are audited by third party like Certik, maximizing the security of the smart contract codes. Therefore , users can rest assured to stake and enjoy the “passive income”.
YooShi Official links: