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Liquidity Mining

Expand the Liquidity Pool to earn #AMPLIFI and $USDC Fees

Adding Liquidity is a means to expand the size of the liquidity pool. On Uniswap v2, this is generally quite useful, albeit not usually technically necessary. Increasing the value of a liquidity pool reduces slippage % and price impact %, making the protocol "friendlier" to larger holders who wish to enter or exit their positions. Just as too little liquidity is harmful to any cryptocurrency project, as is a liquidity pool with too much liquidity. As a result, AmpliFi incentivizes liquidity providers, whilst maintaining the ability to temper yield in the event more liquidity is added than necessary.
Any #AMPLIFI holder may contribute to the Liqudity Pool by pairing any number of #AMPLIFI tokens against the same value of $USDC, the current liquidity pairing.
Example: Holder A wants to earn yield by adding $3,000 to the liquidity pool. He interacts with the AmpliFi Dapp to pair $1,500 $USDC worth of #AMPLIFI against $1,500 $USDC.

Anticipated Liquidity Mining Returns

Target Yield: 42% (annualized) + $USDC Market Making Fees
Reminder: Uniswap v2 distributes $USDC fees to Market Makers. AmpliFi has no control over and is not responsible for distributing $USDC liquidity pair trading fees to Liquidity Providers.

Risk of Impermanent Loss

Impermenant loss is a risk applicable to contributing to any liquidity pairing on any cryptocurrency project. Impermanent loss occurs when the price of the token you added liquidity to decreases to a lesser value than it was when you added the liquidity. Similar to selling a token for a loss on a down-trend, if you choose to remove LP at that time instead of giving time for the token's price to stabilize, you may lose a portion of your holdings. However, the fees earned on $USDC and #AMPLIFI yield may still result in a net-positive gain, but this is situation dependent. Do not add to any liquidity pool without a full and complete understand of the potential risk of impermanent loss.

How to Join the Liquidity Mining Pool

To begin liquidity mining, follow these steps:
  1. 1.
    Visit perpetualyield.io and click 'Begin' to enter the DApp
  2. 2.
    Navigate to the left bar and click 'Staking'
  3. 3.
    On the right, you'll see the 'Liquidity Mining Pool' with a target APY of 46%
  4. 4.
    To acquire LP tokens, navigate to the Uniswap v2 Add Liquidity DApp​
  5. 5.
    Within Uniswap, confirm USDC and AMPLIFI are selected as your pairing tokens - make sure you have enough of both in your wallet to pair the desired amount
  6. 6.
    Follow the steps on Uniswap to combine your USDC and AMPLIFI into LP tokens
  7. 7.
    Congratulations, your LP tokens are now earning trading fees! Let's get them earning AMPLIFI as well
  8. 8.
    Now, back at the 'Liquidity Mining Pool' module, click 'Get Started'
  9. 9.
    In the pop-up, select how many LP tokens you'd like to stake
  10. 10.
    Approve permissions for the contract to access your UNI-V2 LP tokens, if you haven't done so before (this will be prompted in your wallet once you press approve)
  11. 11.
    Once the Approval transaction goes through, you'll see the pop-up button change to "Stake"
  12. 12.
    Confirm the amount you'd like to stake and press the button to initiate the staking transaction!
  13. 13.
    Congratulations! You're now earning #AMPLIFI on your LP tokens.
In the 'Liquidity Mining Pool' module, you can always view your deposited amount and earned rewards. Remember - you can unstake and claim (or compound) your rewards at any time!
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