PancakeSwap X Fox Trading — Liquidity Pool reward program
As we explained on this article, we are migrating to BSC mainnet — Swap your FOXT tokens before 10th July!
Fox Trading on PancakeSwap? Yes, that’s indeed what is happening. Taking advantage of our migration to BSC, from Monday 10th May user will be able to trading FOXT on this Binance Smart Chain-based DEX. So it’s time to dive into PancakeSwap!
There’s a healthy amount of details, explanations, and just good-to-have info on what PancakeSwap is at the end of this article. Have a look and if it’s right you see how to get involved!
With the aim of have a good liquidity to our token on PancakeSwap we want to reward liquidity providers with more FOXT! You can earn up to 18% FOXT in just two months (APR 108%) a part of the fees you’ll be receiving from the trading fees for FOXT/BNB trading.
Add liquidity now here and start earning FOXT!
Reward program details
The Liquidity Program is expected to run for two months, with a target start date of 1st June; end date of August 1st. You’ll get a reward based on the liquidity you add ONLY to the FOXT/BNB pool.
- If you still not migrated your FOXT token to BSC mainnet, check this article on how to do it.
- Contribution deadline: June 1st. Liquidity provided before that point will be the amount counted as a valid amount to calculate the reward tier at the end of the program.
- Lockup period end: August 1st. Lockup your tokens till the end or you’ll not qualify for the reward!
- To qualify and participate, a participant simply needs to contribute FOXT & BNB liquidity into the PancakeSwap pool by the contribution deadline and may only remove that liquidity on or after the lockup period end date.
- The FOXT that is to be rewarded to the users will follow specific tiered rates laid out above — any amount of FOXT contributed greater than or equal to the tier will receive that tiered rate FOXT.
- FOXT will be automatically deposited, on or soon after August 1st, into the on-chain wallets of the providers based on their contributions (as can be reconciled on BSCScan)
- Potential providers should read about PancakeSwap and impermanent loss before participate — there are inherent risks involved with cryptocurrency.
What does the reward looks like?
- FOXT liquidity tiers are minimum thresholds for qualification, starting with 5,000 FOXT.
- Rewards are discrete at each tier, ie 25,000 FOXT will earn at the 14% rate = 3,500 FOXT
- If you removed the liquidity before the lockup period, you are not going to receive a reward — partial lockup is not computing on the program.
- If you partially remove liquidity, you’ll receive the reward based only on the amount of FOXT you keep on it from before the contribution deadline to the end of the Liquidity Program.
Here’s how you add liquidity to the pool:
- To start swapping you’ll want to use a web3 connected wallet like MetaMask or TrustWallet.
- Visit PancakeSwap Exchange Liquidity
3. Click the “Add Liquidity” button.
4. Click the “Select a Token” button and add our FOXT contract address: 0x50ea9c9f88aeab9f554b8ffb4d7a1017957e866a
5. Select the amount of FOXT or BNB you want to add to the pool based on the current ratio we have on it, and click “Approve FOXT” and confirm it on your wallet. Stay on this page until the “Supply” button appears.
6. After your approval goes through and the “Supply” button appears, click “Supply” and Confirm transaction. You’ll see a summary of your transaction, with the number of BNB/FOXT Liquidity Pool token you’ll receive representing the share of the pool.
7. That’s all! Thanks for your contribution to the project. Once promotion ends on 1st August you’ll receive your reward based on the liquidity added.
Important: Remember to not lose your FOXT/BNB LP tokens!! You’ll need it to be able to withdrawal your liquidity from the pool and to get your shares from the trading fees — read below to get more info about that
What is PancakeSwap?
PancakeSwap is a decentralized exchange for swapping BEP-20 tokens.
Familiar with Uniswap or SushiSwap? Then you’ll have no issue grasping PancakeSwap — they are quite similar in their core design.
The PancakeSwap exchange
PancakeSwap uses an automated market maker (AMM) model. That means that while you can trade digital assets on the platform, there isn’t an order book where you’re matched with someone else. Instead, you trade against a liquidity pool.
Those pools are filled with other users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees. So, in short, you can trade BEP-20 tokens, or add liquidity and earn rewards.
You’ll find these LP tokens in several flavors — if you added, say, BUSD and BNB to the pool, you’ll receive BUSD-BNB LP tokens in return. BETH and ETH? You’ll get BETH-ETH LP tokens.
You’ll notice if you visit https://pancakeswap.finance that many features are inaccessible until you click on Unlock Wallet. Click on it, and you’ll be met with a few options: MetaMask, Trust Wallet, WalletConnect, Binance Chain Wallet, and other options.
But wait, we hear you say, isn’t MetaMask an Ethereum wallet?
Yes, it is, but the architecture of Binance Smart Chain is such that you can use MetaMask to interact with BSC-based DApps. If you choose to use MetaMask, we suggest you check out our Connecting MetaMask with Binance Smart Chain guide.
Once you’ve got that set up, you can unlock your wallet to reveal additional information. You’ll see that different LP tokens promise different returns. So how can you add liquidity?
Oh, wait! What is impermanent loss?
Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.
Pools that contain assets that remain in a relatively small price range will be less exposed to impermanent loss. Stablecoins or different wrapped versions of a coin, for example, will stay in a relatively contained price range. In this case, there’s a smaller risk of impermanent loss for liquidity providers (LPs).
So why do liquidity providers still provide liquidity if they’re exposed to potential losses? Well, impermanent loss can still be counteracted by trading fees. In fact, even pools on PancackeSwap that are quite exposed to impermanent loss can be profitable thanks to the trading fees.
PancackeSwap charges 0.17% on every trade that directly goes to liquidity providers. If there’s a lot of trading volume happening in a given pool, it can be profitable to provide liquidity even if the pool is heavily exposed to impermanent loss. This, however, depends on the protocol, the specific pool, the deposited assets, and even wider market conditions.
Read full article here: https://academy.binance.com/en/articles/impermanent-loss-explained