I am going to talk about how to add liquidity to a Farm in Cub Finance. In one of my previous post about liquidity pools and impermanent lost, @theanalystjohn asked how would they approach adding to a FARM. So I decided to write this post where I showed the steps on how to add to a liquidity pool and how to stake that in a FARM.
Unfortunately I had to wait for a failed LEO to bLEO transaction and the refund. This ended up taking a few days to process so I took the chance to increase the LEO I sent over (my earnings from blogging).
Cub Finance Farm Tutorial
In my tutorial, I am using LEO tokens, earned by blogging at LeoFinance, and using it in Cub Finance. I highly recommend you come join LeoFinance and blog about your crypto and financial experiences.
There is one thing you definitely require before you get started: A Metamask account. You can find how to do so at the documentation tutorial released by Cub Finance. Afterwards you need to connect Metamask to BSC using the instructions here.
Your account must have some BNB for transaction fees otherwise you will not be able to do any of the following steps. You can get some off the exchanges and transfer them to your Metamask account. If you are on HIVE, you can exchange some HIVE into BNB using the BSC Bridge.
If you have earned LEO on LeoFinance like me, then you may use the instructions from CubFinance here to wrap your LEO into bLEO here. There is a fee of 1 LEO token. Please make sure to correctly write in your BSC address otherwise your tokens will be sent to the wrong wallet.
Afterwards, I confirmed on BSC that I received the bLEO tokens. You can find the transaction here.
In my previous post, I talked about how to exchange tokens properly and I saw that there was clear documentation about how to do so here. Specifically you will be exchanging for the FARM you want to enter and in my examples, I will be adding to the bLEO/BNB farm. So I need equivalent BNB and bLEO to add to the pool.
I currently have bLEO tokens in my wallet and I also want enough BNB to cover all my transaction fees. So I have chosen to exchange 144 bLEO into BNB where 4 bLEO is going to be converted directly into BNB. I click swap and approve the transaction on MetaMask to get the following confirmations screen.
The swap went well and I actually got more than I put on my confirmation. Maybe the exchange was in my favor. The actual transaction can be found here.
The previous step helped you get enough tokens to add to the liquidity pools equally. So now you need to change your tokens into the liquidity tokens. Cub Finance also has some great documents on how to do so here.
The only difference that I saw that we need to press the button "Add Liquidity". It wasn't in the documents so I wonder if it has something to do with the UI changes.
I put bLEO in the top and BNB on the bottom. Then I put 140 for bLEO in and it automatically put in the equivalent BNB on the other side.
After confirming, I confirmed that everything happened correctly by seeing the two different transactions on BSC. The first transaction added the liquidity to the pool while the second transaction gave me the corresponding LP tokens.
Staking liquidity in Farms
There is a good tutorial from Cub Finance on how to do so here. however the UI has changed slightly so I will just give you a slight idea on how to do so. Do note that every farm has a different fee and the bLEO/BNB farm I invested in has a 2% fee.
If you have never done the farm before, you need to click the Enable button for the farm you want. It is what you would see in the red box above.
Next you will see that red box replaced with whatever you see in the green box. To add your LP tokens that you got from the previous step, you need to click the + button (yellow box above). There is a confirmation on how much to add but I forgot to take a screenshot of it.
The purple box is more for you to get claim your rewards from the liquidity pool in the future. You can see the updated staked value below.
One thing to note though is that it ended up harvesting my CUB right after staking my liquidity. This means regardless of whether or not you it is your first time, you will have the same number of transaction to pay. If you end up starting fresh, you have to approve the contract and if you are adding to your existing stake, it will harvest your CUB. Unfortunately I didn't realize the CUB transaction would take place afterwards so the time stamps below don't match the ones earlier.
You can also check out your currently liquidity into the pool here. After you connect your Metamask, you can see your current liquidity in both Farms and Dens.
What do I get out for adding to a FARM?
There are two ways you are earning when you add to a farm:
- CUB rewards
- Liquidity providers reward
The CUB rewards refer to the APR you see in the FARM. In the updated staked farm values of my bLEO/BNB picture, there is an APR near the middle of the screen. The CUB is generated and you have to harvest later in the future to get these gains.
The second is about liquidity provider rewards. I mentioned it before in my previous post. So for every swap that uses the bLEO/BNB farm I invested in, I gain a little bit of the bLEO/BNB fees generated. If you check out the post, I talk of another risk called impermanent loss that may also apply.
I gave a brief run-down of my own attempt at adding onto the documentation since the UI has changed. For the most part, everything is explained quite well in the documentation but the UI differences might make it a bit tough on people when it comes to the FARMs.
As a summary, you have to do the following actions and pay for 4 different transactions
- adding liquidity
- approve contract (one-time cost) or harvest CUB (if you have existing stake)
- stake liquidity into farms
I started with 0.00646 BNB and ended with 0.00776 BNB. So the extra 4 LEO for BNB costs will give me some buffer to harvest some CUBs in the future.
Please feel free to leave a comment if you read my post. If you have any questions, feel free to ask and I will do my best to answer.
Posted Using LeoFinance Beta