Splinterlands - What Are DEC Liquidity Pools?
The current Splinterlands SPS daily air drop consists of multiple ways to earn airdrop points. One of the categories that anyone can earn with very few assets are in DEC Liquidity Pools. Here in this post we will look at the simplest pools that anyone can join and earn airdrop points.
What Are DEC Liquidity Pools
If you have heard of token swaps or defi exchanges there will be some similarities to what we will be talking about in regards to DEC liquidity pool. Essentially when we trade crypto we tend to trade one token into another token. The two tokens is consider a swap. In an decentralized environment the tokens being traded can be limited. The way around it is to users who hold the tokens of the same value can put it in an exchange pool providing liquidity for traders. The provider of the liquidity is usually incentivized for providing the liquidity. In Splinterlands this is know as DEC Pools. The incentive to providing DEC and some other token to pair up in a pool is earning airdrop points. To in a way is considered a passive investment since the liquidity provider simply provides equal amount of same value of both tokens into the pool and can ignore it until they need to withdraw. In the time frame they leave it in the pool they continuously will earn interest.
How to Participate in DEC Pools?
Earlier I had mentioned one of the low cost of entry to earning airdrop points for the daily SPS airdrop is to participate in DEC Liquidity Pools. For players that do not have a lot of cards but have some crypto tokens such as DEC they can provide liquidity to pools and earn airdrop points that way.
Currently I am aware of two platforms to gain access to the DEC pools that exists. The first is:
Tribaldex created by Splinterland founder aagroed has pool listings that associates to Hive and any Hive secondary tokens. The platform is easy to use. The transfer and withdraws is straight forward. Users will need to have their tokens in Hive-Engine wallet in order to do the transfers.
A second platform that I prefer is created by founder of dcity gerber. The link:
The reason I prefer to use beeswap over tribaldex is mainly because in beeswap the incentives for participating in a pool is transparent. You will understand when you go through both platforms to look at current pools. To also clarify both these platforms connect to the same pools therefore they both show the same pools. The only different is that beeswap I feel shows more which is helpful to end users who are curious as to what the reward incentives are.
Example Using Beeswap
Although snapshot above is shown from tribaldex the objective of the snapshot is to show the current (5) pools that associates with DEC token. The first on the list being the most liquid and the fifth being the least liquid. All but one of the pools provides reward incentives for liquidity providers.
Here I went with the highest liquidity pool which at current time is swap.hive : DEC.
First off I need to login my hive credentials in order to access my hive-engine wallet. From there in the swap.hive:dec poll I click on "+" to add liquidity. Instantly a new window pops up and shows directly my amount of swap.hive and DEC in my hive-engine wallet.
I went ahead and provided 51000 DEC token and at the time of putting in the assets the amount of equivalent swap.hive was a little over 705 Hives. Beeswap automatically calculates the second token I pair up with of its equivalent. So if I had wanted to put 705 Hives into the pool then beeswap will automatically calculate the needed equivalent in DEC amount in order to provide liquidity. So be mindful to know that you need the $ equivalent of both assets in order to participate in providing liquidity to the pool.
Within seconds after the transfer of funds is successful I can see my pool shares in the swap.hive:DEC pool.
With that I would potentially be earning $0.016 of tokens every day I keep the liquidity in that pool. This is not a lot as the APR for it is slightly over 0.5%. However the airdrop points for collecting SPS is actually quite good. It is basically two points for every DEC I provide in the liquidity pool. This leads to nearly 102k points considering the pool asset fluctuate a bit.
I have been saving some liquidity in hopes to partake in buying Chaos Legions pre-sale packs. Instead of buying them I am currently trying to save more liquidity. This is mainly because the cost of vouchers to be able to buy the packs are still exceeding 20 hives each at current prices. This means over $18-$20 for the price range of a pre-sale pack.
For me to keep my liquidity flexible while still earning some points I would move my swap.hive and DEC into the pool to earn 2x the airdrop points. Basically by doing this my swap.hive is now earning me SPS tokens daily. Meanwhile in due time if I do have enough liquidity to save and need to withdraw and use I can immediately do so by withdrawing my swap.hive and DEC in the pool.
For those interested to fully utilize their assets they can be incentivized by providing the assets into liquidity pools. Today's post is focus mainly on DEC pools but there are other token pair swaps out there that people can participate in and earn a lot of incentives.
Until next time thanks for reading!!!
If you are interested to learn more about Splinterlands please go through some of my other posts. Order is from newest to oldest posts:
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