Liquidity Mining on HydraDEX

Attractive APR for providing liquidity on HydraDEX

So, What is Liquidity Mining?

Liquidity Mining (LM) is one of the ways for users to earn additional rewards by using their cryptocurrencies to provide liquidity to certain liquidity pools on DEX's such as HydraDEX. Liquidity is a critical ingredient that enables DEX's to facilitate trades. You can learn how to provide liquidity by visiting this page.

Liquidity providers on the Hydra DEX receive unique NFTs, which act as a proof of the supplied liquidity and store all essential information. Staking this LP NFT to specific LM Campaigns (Liquidity Mining Campaigns) earns you LM incentives.

This way, LP's can earn medium to high yields on their crypto assets in a permissionless fashion, using your non-custodial wallets such as the Hydra Mobile wallet, or if you prefer using a desktop, then on https://hydradex.org/ while using the Hydra Browser Extension. You can also bridge in assets from the Ethereum Blockchain using Hydra Chain's native Hydra Bridge.

The list of pools with active LM campaigns can be found on the Stake tab and will be shown as pairs.

Current Active Liquidity Mining Campaigns & Budgets

• Stablecoin pools

1. 2,000 HYDRA/month for USDC/USDT (0.05% fee rate)

2. 2,000 HYDRA/month for USDC/DAI (0.05% fee rate)

• Lydra Pools

1. 5,000 HYDRA/month for USDC/LYDRA (0.30% fee rate)

2. 5,000 HYDRA/month for ETH/LYDRA (0.30% fee rate)

3. 5,000 HYDRA/month for WBTC/LYDRA (0.30% fee rate)

• High Correlation Pools

1. 3,000 HYDRA/month for WBTC/ETH (0.30% fee rate)

Liquidity Mining Campaigns

Steps to stake LP NFT's for Liquidity Mining Rewards

1. First add liquidity to a pool that has an active LM campaign at the fee rate mentioned in the above list. The steps to do so can be found here
2. On https://hydradex.org/, click on the stake tab from the menu. If using the Hydra Mobile app, click on the blue "Stake" button
3. On the stake tab, you will see multiple pairs for which active Liquidity Mining campaigns are running; similar to the list shared above
4. Click on the pair for which you added liquidity. You will now see your positions displayed along with a blue "Stake" button
5. Click on the blue "Stake" button. Please note, this transaction will cost some network fees. This will stake your LP NFT into the selected LM campaign and you will start earning LM rewards!

Important Points to consider

1. LM Rewards accumulate in real-time.

2. You can simulate expected rewards for a particular price range using the "V3 APR Widget". Click on the gear icon and toggle on the "V3 APR Widget". Here you can select the lowest and highest price change in % to simulate an estimated APR and fine-tune your liquidity strategy. Remember that the tighter you set the price range, the higher your APR will be (high risk, high reward where the higher risk of impermanent loss is compensated through a higher APR)
3. Your positions will earn Liquidity Mining rewards as long as they are within your selected price range. If the market price moves beyond your selected price range, then the LM rewards will stop accumulating. If the market price moves back into your price range, then the rewards will resume.

4. If you want to increase or remove liquidity from your positions, then you will need to unstake and withdraw the LP NFT, so that it becomes visible on the "Pool" tab, where you can "Increase Liquidity" in the position or remove it. Please note, these transactions will cost some network fees.

5. If you would like to check the current ratio of your assets in a particular pool after staking, you can do so by appending your LP NFT ID to this link. https://hydradex.org/#/pool/NFTID . It is advised to take note of your LP NFT ID from the explorer or the DEX before staking your LP NFT For Example: https://hydradex.org/#/pool/0x395 or https://hydradex.org/#/pool/917
6. You can view expired campaigns by clicking on the gear icon and toggle the "show inactive" button.