Polygon is a second-layer solution for Ethereum – as I know the biggest. At the network you can find a couple of swap-service where Quickswap the biggest.
Here I will explain how to:
- Deposit to a pool – and tell what you will earn
- Farm quick – and tell what you will earn
Step 1 – Crypto in your wallet
First step is to have crypto in your maticwallet. You can see your balance at https://wallet.matic.network/ or at your metamask.
Good to know
Some crypto will not be visible in maticwallet, example WMatic. To see your balance – start to make a swap in Quickswap from Wmatic to Matic and you will see your total amount by click MAX.
Step 2 – Deposit liquidity
Go to Pool at Quickswap. https://quickswap.exchange/#/pool
Click at “ Add Liquidity”
Before you choose what pair you want to deposit – go to https://quickswap.exchange/#/quick and see which pair you can farm. All the pair you can see at the link above is possible to use to farm quick. As you can see Matic-Ether is there.
Choose the pair you want to add. In this case I choose Matic and Ether.
Click at Supply and confirm in Metamask.
Good to know
When deposit liquidity you will be a “liquidity provider”. You will earn money but it is also a risk. In small swap-services I think there is a risk for Rug-pulling and hacking. I don’t think Quickswap has that problem but you will still have the risk with impermanent loss. The best article about that you can read at Binance homepage here. https://academy.binance.com/en/articles/impermanent-loss-explained
Step 3 Deposit LP-token
When you deposit to Quickswap you will get at LP-token. That tokens value will be the value you get back when you withdraw your liquidity. This is kind of recipe and proof of liquidity.
Quickswap want to give a incitement to deposit liquidity to the swap and because of that they give the opportunity to farm Quick. That is what we will do now.
Click REWARD in menu. Or go to https://quickswap.exchange/#/quick directly.
Write “Eth” in the field “Search name or symbol”. With that you will see all pools with Ether. If you scroll down you find Eth-Matic (that we have deposit Liquidity too).
Click DEPOSIT
Click MAX (you want to deposit all your LP-token)
Confirm with metamask
DONE!
What you earn - fee
As a Liquidity provider you earn a part of all fees that goes in to that pool. When someone swap between Eth and Matic the will pay 0,3 % in fee. Of that 0,25 % goes to liquidity providers. How much you earn is depending of the trading volume/day and how much you have of the pool.
If you go to the REWARD again you will see your stats. This is my stats for USDC-Quick.
As you see I earn 1,8 USD /Day just now. I have about 1500 USD in that pool.
FEE = Total fee that people have paid to the pool last 24 hour (13 475 USD). I have small fraction of the pool and get 1,8 USD of that.
What you earn – Farming
I have deposit my LP-token in REWARDS. For that I get a small fraction of the Quick-reward every day. As you can see above it is a fixed number. This pool gives 15 Quick every day – split out to us who has deposit our LP-token.
I get % of that daily reward depending of how much % I have deposit of the whole pool. As you see above I get 0,00206 Quick each day just now. If more people stake their LP-tokens here I will get less.1 Quick is about 500 USD so 0,002 is 1 USD.
Rewards + fee gives me just now 88% APR. I have pools with lower APR (down to 40%) but also higher (up to 450 %)
Harvest the farmed quick
All fees you got from being a Liquidity Provider goes to the value of you LP-token.
All Quick you earn in farming you can “harvest” in two ways.
- Withdraw you LP-token from farming. You do it exactly the oposit way of deposit.
- Claim
Go to your pool. Click Claim and accept in metamask. Now you will be able to see your claimed Quick in maticwallet.
Good Luck with farming!
And now you wonder – What should I have a lot of quick to? Should I sell them, farm more or….
I can tell you in next blogpost. I go for a mix of some different ways.
HELP?
Twitter - https://twitter.com/quickswapdex
Telegram -
Or tell me a question and I will see If I can answer.
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STOPVery good guide, thank you for sharing! Providing liquidity on QuickSwap and farming QUICK rewards is a gold mine!