Who is a Liquidity Provider?
A liquidity provider is a person who funds a liquidity pool with crypto assets owned to facilitate trading on the platform and earn passive income on deposits. When funding the pool, they are usually required to fund two different assets to enable traders to switch between one to the other by trading them in pairs.
What is a Liquidity Pool
A liquidity pool is a collection of funds in a smart contract. Liquidity pools are used to facilitate decentralized trading. Pools also referred to as Liquidity Pools, allow users to stake one token in order to earn rewards in another token. This process can be known as 'farming'. The purpose of a Pool is often to encourage users to create LP Tokens (Liquidity Pool Tokens, i.e. PRISM/ETH, DEF/PRISM, DSCVR/ETH, etc.). This improves liquidity for the trading pair, while also rewarding those who provide liquidity and giving them an extra benefit to offset any impermanent loss.
Why Should You Care About Liquidity?
Liquidity on the forex market can be understood as the ability of a valued item to be transferred into the desired currency at a given period of time.
$TRUST Pools
How to Contribute to the Trust Pool
In Pools, two or more tokens are traded in exchange for an earning in the desired token. For somebody to contribute, for example, $100 to TRUST/BNB LP, you need $50 in TRUST and $50 in BNB. When you add liquidity, you will receive LP tokens from this pair.
To add Liquidity click on this link (https://exchange.pancakeswap.finance/#/add/0x2dBd86A424a815AD2A08a2D8dAE07007fed6Dc91/BNB) You will be directed to the PancakeSwap TRUST/BNB Pair page. Once there, click +Add Liquidity.
Click on the "Liquidity" tab, and enter the desired amount of Liquidity you wish.
Once the window opens you will see this tab. Input the amount of $TRUST you would like to add to the liquidity pair or amount in BNB. The PancakeSwap App will automatically calculate the amount needed for the other token.
Remember you need to have enough BNB to TRUST ratio to be able to add to the Liquidity Pool, and BNB for all transactions (to pay for gas fees).
Once you have entered the amount you need to Approve (if you have not previously approved $TRUST transactions on PancakeSwap). If you have previously Approved just click Supply, then a window will pop up showing the amount of tokens received, click Confirm Supply and Approve the transaction.
Once the transaction has gone through (You can check on the BSC scan link that pops up), you can now use those tokens to farm for more $TRUST.
The TRUST/BNB balance that you put in liquidity is "wrapped" inside these LP tokens! On this note, don't send these tokens to anyone!
Copy the LP contract address into metamask as follows, you can edit the name of the token to make it easy to find.
Your newly minted LP tokens will show up in your metamask wallet like UNI-V2 / CAKE LP tokens (Example shows of balance).
Available Pools for Farming $TRUST
There are five active pools on the Prism Network Platform. It will be running for a total duration of 12 weeks. The Staking pool began emitting rewards on Sunday 16th May.
- bPRISM/BNB -> 35,000 TRUST
Duration - 70 days# - bPRISM/TRUST -> 50,000 TRUST
Duration - 90 days - BNB/TRUST -> 65,000 TRUST
Duration - 90 days - BUSD/TRUST -> 25,000 TRUST
Duration - 60 days - CAKE/TRUST -> 25,000 TRUST
Duration - 60 days
Farming for $TRUST using earned LP
STEP 1: Use the link https://prismnetwork.io/ to go to the PrismNetwork dashboard. (Remember to connect MetaMask wallet to interact with the Dapp).
STEP 2: On the left side of the page, under the header Staking Pools, click on BSC pools. Here, all the available pools to farm $TRUST tokens will be displayed. This guide gives an explanation of how to create and stake TRUST/BNB pairs. Nonetheless, one can create any of the pairs as seen below for use to farm $TRUST.
STEP 3: Click on bPRISM/BNB under Pool and a window will pop up, confirm the transaction by clicking "GET ALLOWANCE", and you will come to the tab where you can deposit your LP tokens.
STEP 4: To choose the amount of LP tokens you want to deposit, slide the horizontal bar in the "Enter amount or select % of balance to deposit". You can slide the bar from 0 to 100% or enter manually how many tokens you want to stake. The higher the stake, the more $TRUST you will farm.
STEP 5: Once the desired amount has been entered, click "DEPOSIT".
STEP 6: Approve transaction, and when the transaction goes through you will have successfully staked your LP tokens and started to earn $TRUST tokens.
You can claim your rewards once you start earning them. To beat the gas fees for claiming, it is usually recommended to claim a decent amount. You can withdraw your LP tokens at any time, remember that the unstaking fee is 1.5%.
Step 7: You can also increase the % of your stake by boosting the pools. Simply spend one of four boosts to multiply your yield. You can purchase Bonuses to boost your stake, in this case, it would be boost with BNB. To be able to boost, first, you will need to approve, pay for gas and then choose the level of boosting you would want for your Farming Pool.