OpenSwap University 103: How to farm crypto

Getting started in decentralized finance (DeFi) can be a challenge. To assist new members of the OpenSwap family, we have created a series of introductory how to articles. This article will guide a user on creating a liquidity pool (otherwise known as a LP), staking the LP, and farming the rewards.

Creating a Liquidity Pool
A liquidity pool is a crowdsourced pool of tokens, locked in a smart contract, that is used to facilitate trades between the assets on a decentralized exchange. To put it simply, you are combing two tokens into a LP token; which you can be used to stake and farm. We will discuss staking and farming later in this article.

Before we proceed, please become familiar with a term called impermanent loss (IL). There are entire articles written on IL and it is highly recommended you are a familiar with it.

First, decide on two tokens you would like to combine into a liquidity pool. It may be wise to check the farming page to see what LPs are available for staking but I don’t want to jump to far ahead. Once that decision has been made continue with the guide below to create the LP.
STEP 1: Go to https://openswap.one
STEP 2: Click on ‘Liquidity’ in the top navigation
STEP 3: Select two tokens and click ‘Next’
STEP 4: Click on ‘Add Liquidity’
STEP 5: Enter the amount of tokens you would like to submit to the LP. By entering in a value for one of the tokens, the other will automatically adjust to the proper amount.
Step 6: If you have not previously approved adding liquidity to the pair, you will be required to approve spending of those tokens. By approving, it allows the smart contracts to take those tokens from your wallet and put them inside the liquidity pool. Click the ‘Approve’ button to have the approval transaction populate in your wallet. If you have previously approved a LP for this pair, continue to the next step.
STEP 7: Click ‘Add’
STEP 8: Your wallet will prompt you to confirm the transaction. There will be two notifications when you submit a transaction: ‘transaction sent’ and ‘transaction successful’.
STEP 9: The created LP tokens will now be in your wallet.

Staking LPs
By staking your LP tokens, OpenSwap will hold them on the exchange. As a reward for staking, you will receive OpenX tokens. As long as the LPs are staked, rewards will continue to accrue. OpenSwap does not charge any fees to deposit or withdraw LPs into a staking pool.

To stake your LP tokens:
STEP 1: Click on ‘Farm’ in the menu
STEP 2: Locate the LP you would like to stake and click ‘Details’
STEP 3: Once you are viewing the LP staking details, click ‘Stake’.
STEP 4: Enter the amount you wish to deposit. There are no fees to stake or unstake LPs on OpenSwap.
STEP 5: If you have not previously approved staking the LP, you will be required to approve spending the LP tokens. By approving, it allows the smart contracts to take those LP tokens from your wallet and stake them on OpenSwap. Click the ‘Approve’ button to have the approval transaction populate in your wallet and confirm in your wallet pop-up. If you have previously approved staking for this LP, continue to the next step.
STEP 6: Click ‘Stake’. You will need to confirm that transaction in your wallet.
STEP 7: Your wallet will prompt you to confirm the transaction. There will be two notifications when you submit a transaction: ‘transaction sent’ and ‘transaction successful’.

Start Farming (collecting rewards)
All of the rewards you have accrued from staking LPs will be available for you to claim. Rewards on OpenSwap are not locked and will be fully available for your use when claimed.

To claim rewards in an individual pool
STEP 1: Click on ‘Farm’ in the menu
STEP 2: Locate the LP you would like to farm and click ‘Details’
STEP 3: Once viewing the details of the pool, click on the ‘Collect’ button.
STEP 4: Your wallet will prompt you to confirm the transaction. There will be two notifications when you submit a transaction: ‘transaction sent’ and ‘transaction successful’. Once the transaction has been processed successfully, the OpenSwap tokens will be available in your wallet.

To claim rewards on multiple LPs at the same time
STEP 1: Click on ‘Farm’ in the menu
STEP 2: Near the top of the page, click ‘Claim All’
STEP 3: Your wallet will prompt you to confirm the transaction. There will be two notifications when you submit a transaction: ‘transaction sent’ and ‘transaction successful’. Once the transaction has been processed successfully, the OpenSwap tokens will be available in your wallet.

Congratulations, you will now be earning rewards on OpenSwap for providing liquidity! You can see your current rewards for each pair under the pair details.

Please check out our OpenSwap University articles for additional introductory user guides. https://docs.openswap.one/information/openswap-university

OpenSwap (app.openswap.one) is a fast and secure non-custodial decentralized exchange that serves as a one-stop-shop to buy, trade, and earn crypto whether you’re from the Harmony, Ethereum, or Binance Smart Chain networks. OpenSwap allows Harmony users to seamlessly trade peer to peer without the tokens ever leaving the original wallet and through liquidity supplied by other users of the platform. With OpenSwap, users can:
- Exchange Tokens/Coins
- Provide Liquidity to Pools
- Earn Rewards by Staking in Lucrative Incentivized Liquidity Pools
- View ‘Personal Farming Profile’ detailing your rewards including Total Stake Value, Average APR %, Total Current Rewards, and Total Current Rewards in USD
- Simplified Bridge for Tokens/Coins to and from the Harmony, Ethereum, and Binance Smart Chain Network
- Collect Fees on Provided Liquidity Without Staking
- Vote on Governance Decisions, Including Adding New Tokens

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