Liquidity mining is another way to earn revenue at DODO. There are currently two different types of liquidity mining:
- 1.Single Coin Mining
Users only need to stake tokens in the mining contract to participate in single coin pledge mining. With single coin pledge mining, there is no loss of the principal investment.
- 2.LP Market Making Mining
Users need to add market-making funds to the designated liquidity pool, and then get LP tokens and contribute these to the mining contract to participate in mining. Note that LP market making mining is only supported on public pools, and there is a risk of principal loss in this form of liquidity mining.
The following tutorial describes how to participate in LP Market Making Mining.
Connect your browser wallet. DODO supports most of the popular browser wallets, including MetaMask, Trust, TokenPocket, imToken, SafePal, and Coinbase Wallet.
Click on the “Mining ” tab at the top of the page, and then on the "Active" tab 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.
If you don’t have any LP Tokens, click the “Get [token] LP” button to be 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 DLPs to liquidity assets is not 1:1.
Click “Approve” and “Stake” on DODO, and confirm the transaction in your wallet app to start mining.
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.
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.