Here we will show you how to provide liquidity on the Alcor Exchange for Yoshdrops tokens.
1. Why Join - Pool Rewards
The Alcor Exchange has the following incentives for joining a pool:
- No commission on the deposit/withdrawal of liquidity.
- The liquidity can be withdrawn at any time.
- The current commission of providers in the pool: 0.3%.
Alcor describes the process of providing liquidity as:
To provide liquidity, you send in a 50/50 split of the 2 tokens at a market price. Any time someone converts from one of the assets to the other, it charges a 0.3% fee that is paid to the liquidity pool. You get to claim the percentage of the fees based on the percentage of the liquidity pool you have contributed.
So, the bigger the % size share of the pool you have (i.e the more tokens you contribute), the bigger the slice of the shared fee you earn. Nice!
Of course, nothing in this article is financial advice and you should do your own research, understanding the potential risks of providing liquidity.
But wait, there is more! As an added incentive, Yoshi conjured up some magic for those contributing to the Yoshidrops pool.
One million YOSHIBK will be shared out to liquidity pool contributors every 6 months!
There are various token pairs you can join, each with a % share of the one million YOSHIBK:
|% Share of YOSHIBK Reward||Liquidity Pool|
It's also super important to note that YOSHIBK will be limited to a max supply of just 21 million (the same as Bitcoin). This makes YOSHIBK one of the few tokens on the Alcor Exchange with a max supply!
Sounds good? Here's how to get started!
2. Get your ingredients ready
Just like baking a cake, contributing to a liquidity pool requires the right ingredients.
We need two ingredients: Yoshicoin (YOSHICN) & Yoshibucks (YOSHIBK).
Both Yoshicoins & Yoshibucks start life as NFTs. First, we need to convert them into tokens so we can use them on the Alcor Exchange.
Converting Yoshicoins & Yoshibucks into tokens
Converting is really easy (thanks to incredibly clever people for making this possible).
In this example, we will use a Yoshicoin NFT.
Login to your WAX wallet on the Atomichub and head-over to ''Trading'
Click on the orange 'Transfer' button in the left-hand menu window.
Within the 'Recipient Account Name' simply add: tokenizednft
Leave the 'Transfer Memo' blank.
Scroll down and filter by 'All Collections' and select Yoshidrops. We will also filter by Yoshicoins since this is what we will transfer.
When you select the asset(s) you want to transfer, they will be highlighted around the border in orange.
When you scroll back up the page, you will see all assets you have selected to transfer.
Now tap 'Send Transfer' and 'Confirm'. You will then see a 'Transaction Successful!' message.
And that's it! Our Yoshicoin NFT has now been converted into a YOSHICN token.
To check that it's been a success, head over to the Alcor exchange.
Log in with your WAX wallet and click on Wallet in the header.
Here you will see all your tokens, including the 1 YOSHICN we now have. Nice!
2. Join the liquidity pool
Joining the pool is also really easy when you have the know-how.
For this example, we will be joining the YOSHICN/YOSHIBK pool.
Back in the Alcor Exchange, click on 'Swap' in the header menu and we want to make sure we select the + liquidity option.
Next, make sure you select Asset 1 as YOSHICN and Asset 2 as YOSHIBK (if you want to join the other pools, say YOSHIBK/AETHER, simply adjust Asset 1 to YOSHIBK and Asset 2 as Aether).
Once you have the above set-up, you can now add in the amount of YOSHICN you contribute to the pool.
When we add our 1 YOSHICN in the Asset 1 field, you can see that Asset 2 auto-populates with a figure, in this case, 42.0442. To provide liquidity, we will also need 42.0442 YOSHIBK.
If you have the required YOSHIBK, the green 'Provide liquidity' text will appear.
Once tapped, you have now contributed to the pool! Over to the right-hand side of your screen (or bottom if on mobile), you will see your liquidity position.
For that 1 Yoshicoin, we have a 0.05% share of the pool. Neat!
Here you will also be able to see your fee earnings once accumulated.
What if I don't have enough YOSHIBK or YOSHICN?
If you are missing one asset or the other, you can easily buy more NFTs on the AtomicHub market and transfer for tokens as described earlier in the article.
If you are missing a non-Yoshidrops asset such as WAX, you can purchase those accordingly. We have a great guide on how to buy WAX on Binance.
The other option is to split one of your assets in half, by swapping with the one you need.
For example, we could take our 1 Yoshicoin and swap 0.5 of it for YOSHIBK. Just change the tab from '+ liquidity' to 'Swap':
Then you can repeat the steps to join the liquidity pool (note, you will lose a little in fees, so you will need to slightly adjust the amount you can contribute.)
How do I leave a pool?
If you want to leave a pool, make sure you have the + liquidity tab selected and scroll to your liquidity positions. You will see a minus button over to the right.
You can tap this, or you can simply select the - liquidity tab.
Slide the green slider to increase the withdrawal %. 100% will remove all funds within the liquidity pool.
3. Keep Updated
Now you know how to join a Yoshidrops liquidity pool, keep up with the conversation:
- Catch Every Tweet - Follow Yoshidrops, M Blu, Yoshi Kondo, Corey Cottrell and Arodie.
- Join The Community - Join the official Yoshdrops Discord group.
- Subscribe - Join Arodie for free and get article updates direct to your inbox.
- Yoshidrops Blog - Check out the Yoshidrops blog for the latest updates.