Guide : How to add Liquidity to Frax Finance Pools on Uniswap.
This will be a step-by-step guide for farmers who are interested in Frax Finance liquidity mining programs, we will be using the Metamask extension, You can link other wallets supported by the UNISWAP exchange as well.
The liquidity mining program on UNISWAP offers FXS rewards for these Pools :
FRAX-USDC 33%
FRAX-FXS 33%
FRAX-ETH 33%
in the example below we will add liquidity to the FRAX-FXS Pool.
1- how to get FRAX & FXS tokens?
connect your Metamask extension to UNISWAP, then purchase the desired amount of FRAX & FXS you like to add to the liquidity using the links below:
FRAX : https://app.uniswap.org/#/swap?inputCurrency=0x853d955acef822db058eb8505911ed77f175b99e&outputCurrency=ETH
FXS : https://app.uniswap.org/#/swap?inputCurrency=0x3432b6a60d23ca0dfca7761b7ab56459d9c964d0&outputCurrency=0x853d955acef822db058eb8505911ed77f175b99e
(NOTE : you will need equal dollar value of both FRAX and FXS, for example if you want to add 100 FRAX you will need 100$ worth of FXS).
2- How to add liquidity to Frax Finance pools ?
Step 1
- Now you hold both FRAX and FXS, you will need to Add liquidity.
- Please head to our Dashboard link: https://app.frax.finance/staking
- Choose Uniswap FRAX/FXS pool from the drop-down menu, Click on +/- Liquidity button or the link below :
- You will arrive at this page:
Step 2
- Select the amount of FRAX you wish to add to the liquidity pool, UNISWAP will automatically calculate the equivalent value in FXS to be added, we will add 400 FRAX +54.011 FXS.
Step 3
- Click “Approve” for both FRAX and FXS spendings, for each Approve a Metamask transaction will pop-up. Confirm the transaction, and wait between the steps while showing Pending status.
(NOTE: It is recommended that you use sufficient gas to execute the transactions)
Step 4
- Once FRAX & FXS are approved, click “Supply”:
- Click “Confirm Supply”:
- A Metamask transaction will pop-up. Confirm the transaction:
Step 5
- Click on add UNI-V2 to Metamask.
- Wait for the transaction to be completed.
- you will receive FRAX-FXS LP tokens, and UNISWAP will show your liquidity position here:
Step 6 (Staking)
- Head to our Staking dashboard https://app.frax.finance/staking , and connect your Metamask.
- choose Uniswap FRAX/FXS pool from the drop-down menu.
- now your LP tokens should appear in the deposit section, click on available to add them.
- you can choose between Unlocked and Locked staking, as it shows below the Normal APY is 89.33% for unlocked staking , and the Max APY is 268.00% for 3 years Locked staking,
- in this example we will use a 365-days Lock.
- click “Stake”
- A Metamask transaction will pop-up to Approve your UNI-V2 tokens spending, Confirm the transaction.
- A second Metamask transaction will pop-up to Stake your UNI-V2 tokens, Confirm the transaction.
Congratulations, you have successfully provided liquidity, you should NOW Start receiving FXS REWARDS!
Frax: Fractional-Algorithmic Stablecoin Protocol
Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The stablecoin (FRAX) is named after the “fractional-algorithmic” stability mechanism. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.
FRAX : is the stablecoin targeting a tight band around $1/coin.
Frax Shares (FXS) : is the governance token which accrues fees, seigniorage revenue, and excess collateral value.
Frax Finance official links :
- Website : https://frax.finance/
- Frax Farm : https://app.frax.finance/
- Twitter : https://twitter.com/fraxfinance
- TG Discussion : https://t.me/fraxfinance
- TG Trading : https://t.me/fraxtrading
- Telegram News Channel : https://t.me/fraxfinancenews
- Docs : https://docs.frax.finance/
- GitHub : https://github.com/FraxFinance
- Whitepaper : https://github.com/FraxFinance/frax-solidity/raw/master/frax_whitepaper_v1.pdf
