Taking your DeFi to the next level
Many know the benefits of DeFi such as increased efficiency and better interest rates. But another benefit--an enormous benefit—is that you can be more involved in the financial process (and be rewarded well for it).
In decentralized finance, you can provide liquidity (available assets) for crypto trading pairs. In the case of DeFiner, this is trading pair ETH and FIN.
When depositing amounts of both tokens into our liquidity pool (by way of the decentralized exchange Uniswap), you are rewarded with a piece of revenue generated by the ETH-FIN trading market. In other words, for helping these trades happen, you receive a piece of the fees users pay when making these trades.
Those offering their ETH and FIN into this liquidity pool receive a special token: FIN-LP. This token can then be deposited into DeFiner, where it earns high interest.
Here's how this works:
First, log into app.definer.org and connect your wallet.
Go to the Swap tab at the top of the screen. When you arrive there, click on "FIN-LP Pool."
You'll be taken to the Uniswap FIN-ETH trading page. Here you can add liquidity to this market by clicking "Add Liquidity."
Here, enter the amount of each token to deposit. You need to enter both in amounts corresponding to their value to one another. In this case, 1370 FIN (at this day's price) is about .5 ETH.
You'll also see how big of a piece of the liquidity pool you will represent with this deposit (right on the right). In this case, these amounts (on the day of this screenshot) will equal about .7% of the pool. This is the percentage of trading fees you will receive for providing this liquidity.
Once you enter your position, click on "Supply" and approve the deposit in your wallet.
Following your deposit, you will see your position in the pool. (This position is from a previous, smaller deposit.)
Notice the corresponding amount of awarded FIN-LP, a special token for providing liquidity.
FIN-LP will be automatically entered into the digital wallet you use for this transaction. But to see it, you need to add it.
On Metamask, click on "Add Token" and then enter a Custom Token.
Token Contract Address: 0x486792bcdb13F8aaCf85288D98850FA2804F95c7
Token Symbol: UNI-V2
Decimals of Precision: 18
After you enter this info, click "Next," and then click on "Add Tokens." The token is now added to your list of assets in your wallet, where it will show the amount sent to you from your liquidity pool transaction.
Finally, to deposit your new FIN-LP into DeFiner, go to your DeFiner portfolio and click on the FIN-LP token.
Select the amount you want to deposit, click on "Deposit," and approve the transaction from your wallet.
Go back to your portfolio to see your FIN-LP deposit and the interest you earn over time.
Congrats on becoming a liquidity provider. Not only are you earning high interest on your FIN-LP token, but you are an active part of the DeFi world.