Yield farming is coming to HALO Network’s first DEX, HOSWAP. It’s a great way for liquidity providers to earn maximum rewards from staking their LP tokens.
LP farms are live already, so it’s time for you to get involved. Not sure how to be a part of this? Not to worry, we have got you covered. Here’s everything you need to know regarding the HO LP farming.
Getting Started
To enjoy the gains of HO LP farming on HOSWAP, you need a compatible Web3 wallet. Don’t have one? Visit halo.land to see the list of compatible Web3 wallets. Download any of those, set up a wallet address following the prompts, and safeguard your passphrase.
Here’s a link to a step-by-step guide on setting up your wallet to use HALO Network.
Since HALO Network is new to the block, most wallets don’t have the blockchain’s settings configured from the get-go. You have to use the custom option to get the wallet connected to HALO Network.
Native Tokens Needed
You can’t partake in LP farming on HOSWAP if you don’t have some HO tokens at the very least. You can easily buy HO on PancakeSwap, BSC’s main DEX. However, buying HOS requires using HOSWAP.
Not sure how to use the Swap service on HOSWAP to buy HOS? Follow this guide on buying HOS on HALO Network’s main DEX. The piece breaks down the entire process, making it easy to get HOS.
The Farms
HOSWAP’s liquidity mining program is only a few weeks old. So it’s no surprise to see the LP farms available are few – 2 – at the moment. You have the HO-USDT and HOS-HO pools.
Both farms require you to purchase HALO Network’s native token, HO. You can easily do this through HOSWAP. Accessing the swap function is easy – just select the DEX from the menu on halo.land and you’re nearly there. Go here to see a breakdown of how to add liquidity to the pools on HOSWAP.
With APRs for both pools above 300% (as at the time of writing this piece), it’s more than you’d get with existing blockchain liquidity pools.
It’s worth noting that the USDT used in providing liquidity has to be HALO-pegged. Nevertheless, you can bridge your USDT from the BSC chain using HALO Bridge.
Providing liquidity on HOSWAP is one thing, viewing your LP tokens is another. Interestingly, you have to add the contract address on your Web3 wallet to see the LP tokens.
Staking
Having LP tokens isn’t equivalent to staking. The former entails providing liquidity on the DEX, while the latter involves putting those LP tokens to work.
On HOSWAP, once you provide liquidity, you’re issued LP tokens that accrue rewards in real-time based on transactions for the trading pair.
Staking rewards might be passive, but they’re bigger than what you’d get just holding your LP tokens. Moreover, you can put that LP to work on HOSWAP by staking them.
APRs of 300+% is certainly nothing to be sniffed at – which is what you’d get staking those LPs on HOSWAP. Current offers on existing DEX are much lower than that, so it’s worth going into.
Staking on HOSWAP is not so different from the process of yield farming protocols. Yet, here is a guide that simplifies the entire process so you can be done with staking and move on to other things.
It’s worth emphasizing the risk of impermanent loss when adding liquidity and staking on HOSWAP. No matter how attractive the staking APR might be, you should never ignore the risk of impermanent loss. Not sure what impermanent loss is? Here’s a link to a resource on impermanent loss and how it affects yield farming protocols.
Staking Reward Vs LP Reward
Just like on any other DEX, the reward you get from staking differs from what you’d get providing liquidity on HOSWAP. LP rewards are based on liquidity provided and the trading fee accrued for the specific pair. For instance, liquidity providers earn 0.17% of the trading fee. While LP earners are limited to the nearly insignificant
On the other hand, those who proceed to stake their LPs enjoy the dividends of both sides – staking rewards and LP rewards. So should you decide to stake your LP tokens, you get to enjoy the mouthwatering APY available and the liquidity provider fee.
Staking on HOSWAP remains attractive as you can unstake anytime. Also, you get to keep track of the APR, so if it drops to a level that you’re not comfortable with, you can unstake your LPs quickly.
HOS Reward
Where HOSWAP yield farming opportunity appears similar to other DEXs is the reward token. Once you stake your LP tokens, you get rewarded in HOS tokens, HOSWAP’s native token HOS.
The HOS token is different from HALO Network’s token, HO. You can’t ignore the yet-to-be-listed HOR token. The token trinity can be confusing, so it’s important that you know the purpose of these tokens and where they come in.
Can you trade HOS? As you accrue that HOS from staking, you can sell it off whenever you want.
HOR is the reward token, but it’s not listed at the moment, but that should happen real soon. Regardless, that shouldn’t be a problem as HOR is specifically for rewards.
Conclusion
HOSWAP is open for business, and that includes access to its LP farming opportunity. While liquidity pools are not in massive supply on HOSWAP, those mouthwatering APRs available for both pools make up for it.
As enticing as the liquidity pools might be, it comes to naught if the DEX is all over the place. Fortunately, that’s not the case. Leverage the links to valuable resources provided, so you save time on using HOSWAP. Hopefully, this piece helps you earn passive income from LP farming on HOSWAP. Remember, LP staking comes with the danger of impermanent loss, so proper risk management is crucial.
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