In this short tutorial we will try to provide answers to these questions.
How do I earn money on QuipuSwap?
Once you add liquidity to QuipuSwap you become a Liquidity Provider. Liquidity providers get 0.225%- 0.3% commissions from each swap operation in their pool + Baking rewards from Staking Tezos in the Liquidity Pool. Also, you may participate in QuipuSwap QUIPU Staking and Farming programs and earn extra-rewards by staking your liquidity in farms.
Your LP tokens represent your share in the pool. When a user makes swaps the fees stay in the Liquidity Pool and as a result the total value of the assets per share in the pool grows.
When you claim your deposit back, you return your share tokens, and your share of the pool (which was represented by your share tokens) is sent to you.
It is hard to estimate how much you will earn because there are too many factors that influence this:
- The intensity of trade and how many swaps users conduct in the pool.
- Your deposit duration, i.e. for how long you staked your shares in the pool.
- Impermanent loss, i.e. when the volume of tokens is changed due to significant token price changes.
- Other changes and risks that are intrinsic to all DEXes.
- For example, you can deposit 100 XTZ ($5 per XTZ) and 500 USD (total value $1000), but when you withdraw, you will receive 70 XTZ and 900 USD (total value $1100 at the time of withdrawal).
- In another case, you may receive 135XTZ and 450 USD (total value $1125).
- In the worst case scenario of impermanent loss, you can get even less than you have added to the pool. For instance, you may receive: 55XTZ ($7 per XTZ) and $600 a total value is $985
Ok, so what APY will I get?
QuipuSwap has only launched recently and we don't have enough analytical data to forecast possible APY for the Liquidity pools. For this reason, all numbers related to APY are speculative.
How can I check the current reward that I may receive for my LP tokens?
We are still working on the Analytical section but right now you can check the total amount of tokens that you may withdraw by following these steps:
1. Visit the "Liquidity" tab
2. Choose "Remove" from your Liquidity pool
3. Click the max amount of your shares
4. You will see the estimated number of tokens that you will receive after removing your shares.
How to see my Baking rewards when can I get them?
We have written a complete guide that explains everything related to your baking rewards, just read this article.
Frequently asked questions.
1. Checking my staked funds is too complicated. Do something.
We are working on the analytics section. In QuipuSwap V.2.0 this inconvenience will be fixed.
2. What guarantees do you provide? I want to be sure that I will earn not lose money.
You are working on a high-risk DeFi field, where you may earn or lose money. We don't provide guarantees. If you have doubts then we advise you not to invest in the QuipuSwap. Your investments are solely your responsibility.
3. I have other questions
If you encountered any problems, please feel free to ask your questions in our telegram or discord communities.