Unlocking Liquidity: A Beginner’s Guide to Liquidity Mining

At Floor Protocol we have Farming Pools ranging from 50% to >9999% APY depending on the volume, events and campaigns that we’re running!

In this article we’re going to teach you how to easily Farm these attractive pools 👨‍🌾🌾

Plus, we’ll provide step-by-step videos to get you started. (The article is a shorter read!)

Watch the videos here 👇

Intro To Floor Protocol 🏃‍♂️ [Turn on Captions]

Intro to Liquidity Farming 👩‍🌾 [Turn on Captions]

Alternate Way to acquire μ-Tokens [Turn on Captions]

Getting Started

Finding the Best APY (40% to >9999%) 👩‍🌾

Head first on to the Liquidity Tab. This is where we can find the best APY for farming!

Then click on the Sort by APY field to find the highest yielding pool at the moment 🔥

Once you’ve decided on the pair to farm, head onto the “Trade” tab to acquire these tokens. (If you don’t already have the tokens)

Assuming you already have USDC, you’d have to buy some $FLC to be able to farm the 1483.06% pool ✅

Now for the fun part, let’s go back to the Liquidity Tab to experiment on how to yield an outrageous APY by playing with the range setting 😎

Here we can see that the default range for $FLC/USDC yields us about 1,500% APY. That’s pretty good, but what if we click on the +/- 5% range preset…?

💥 >7280% APY achieved 💥

Because your capital is squeezed within a tight range, your capital is actively being utilized for the hundreds of transactions that happen here, increasing your Trading Fee rewards and Farming rewards! ✅

If you have a tight range, you can monitor your position to keep Impermanent Loss to a minimum!

Tis the season to be yielding.

I’ve started a liquidity position for $FLC/USDC, click the Add Position button to follow along.

And once your Transaction is Successful, click on the “Farm” Button to start earning $FLC Rewards on top of Trading Fee Rewards 🌾

Viola! You’ve opened a yield farming position on FP!

You’ll be earning >5600% APY until the price moves out of your range 🔥

What happens when your LP is Out of Range (OOR)?

To continue Farming, you have to Stop Farming the current LP, and close the LP position (unless you think price will get back to this range!).

As you can see, the impermanent loss on my initial LP is minimal due the rich liquidity of the pool! (<0.1%)

Close LP

Once you’ve freed up the liquidity again, you’re able to either continue farming this pool at a new price, or other pools that may be more attractive! 👨‍🌾🌾🌾🌾

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Helpful links to get started with include:

Website:
https://fp.io/

Twitter:
https://twitter.com/floorprotocol

Discord:
https://discord.gg/flooringlab

Gitbook:
https://docs.fp.io/introduction/getting-started

Telegram:
https://t.me/floorprotocol