How to participate in liquidity mining?
Liquidity mining, a cornerstone of the decentralized finance (DeFi) ecosystem, involves providing liquidity to a platform's pools and earning rewards in return. This concept plays a crucial role in ensuring sufficient liquidity on exchanges like DODO, which in turn facilitates smoother trades and better price stability.
2.Choose a Trading Pair#
Click “Active” to see every trading pair on DODO that is available for liquidity mining.Once you have selected a trading pair, click the button for the token you would like to stake.
Note: When staking, depositing, or trading a token for the first time on DODO, you need to give DODO permission to access that token in your wallet by clicking “approve” in your wallet app.
3.Obtain LP Tokens#
If you don’t have any LP Tokens, click the “Get [token] LP” button to get transferred to the Add Liquidity page for that trading pair, and obtain LP tokens by adding liquidity to this liquidity pool.
After successfully adding liquidity on the trading pair’s liquidity page and obtaining the LP tokens, go back to the trading pair’s Mining page and click “Approve”.
LP tokens on DODO, known as DLPs, are your proof of being a DODO liquidity provider, representing a share of the liquidity pool. The ratio of DLP to liquidity assets is not 1:1.
Click “Approve” and “Stake” on DODO, and confirm the transaction in your wallet app to start mining.
5.Stake and Start Mining#
6.Withdraw Your Assets#
To withdraw your assets, you need to unstake your LP token on the Mining page first, and then withdraw your funds on the Liquidity page.
7.DODO's Approach to Liquidity Mining#
Rewards in DODO Tokens: DODO's liquidity mining program rewards participants with its native token, DODO. These rewards are flexible, allowing participants to deposit or withdraw at any time, with the ability to claim rewards instantly.
Reward Distribution Mechanism: The amount of DODO rewarded for each LP token is fixed per block. This means that as more participants deposit into a pool, the individual yield rate decreases. It ensures a fair distribution of rewards, where earnings are based on the proportion of liquidity provided.
Multi-Chain Availability: DODO has expanded its liquidity mining program across multiple blockchains, including Ethereum (ETH), Binance Smart Chain (BSC), and Arbitrum. This multi-chain presence not only diversifies the options for liquidity providers but also broadens the reach and efficacy of the DODO platform. Detailed information about the ongoing liquidity mining programs, including specific pools and reward rates, can be found here.
Liquidity mining is not risk-free, and there is always a possibility of loss. Please be careful when liquidity mining and make sure you understand the risks.