Liquidity mining with the DeFi app

A step-by-step guide on how to participate in liquidity mining with the DeFi app for high returns of up to 500% APY.

What is liquidity mining?

Liquidity mining is a DeFi (decentralized finance) mechanism in which participants contribute cryptocurrencies to liquidity pools and are rewarded with fees and tokens based on their share of the total pool liquidity. Liquidity pools in DeFiChain consist of liquidity in pairs of coins used by the DeFiChain DEX (decentralized exchange).

Add liquidity

Step 1: Launch the DeFiChain app

Don't have the app installed yet? Click here for step-by-step instructions.

Step 2: Navigate to liquidity

Click Liquidity in the sidebar to access the liquidity pools.

Step 3: Learn more

If you're looking to add liquidity for the first time, you'll be presented with videos you can watch to learn more about liquidity mining on DeFiChain and how the DEX works. Be sure to watch the video on impermanent loss, the biggest risk in liquidity mining.

Below the videos, you'll find a list of pool pairs . Within each pool pair, the total liquidity and APY are displayed.

Step 4: Decide which pool pair you want to add liquidity to

You can provide liquidity to the ETH-DFI, BTC-DFI, and USDT-DFI pools. Regardless of which pool pair you choose, you need the corresponding coins in your wallet. For example, if you want to provide liquidity to the BTC-DFI pool, you must have sufficient BTC (wrapped BTC) and DFI in your wallet. The current version of DeFiChain only accepts wrapped tokens (wrapped ETH/BTC/USDT). If you don't currently have any wrapped tokens, check out this guide.

Once you're ready to provide liquidity to one of the pool pairs, click ADD LIQUIDITY . You can also click the "+" button for each pool pair to add liquidity to that pool pair.

Step 5: Add liquidity

In this example, we'll add liquidity to the BTC-DFI pool pair. Enter the amounts for both the BTC and DFI sides. You can use the MAX buttons to add the maximum amount for each coin available in your wallet. When you enter an amount on one side of the pair, the app automatically balances the amount on the other side based on the current liquidity ratio in the pool.

TIP: If clicking MAX on one side causes an "Insufficient funds" warning, simply click MAX on the other side of the pair.

Next, select the address to which you want to receive shares and rewards. Unless you want to receive rewards to a specific address, you can usually leave this field unchanged.

When you're ready to add, click NEXT.

Review the deposits, rates, and pool share, then click SUPPLY to confirm.

The app will then prepare the transaction, followed by adding your liquidity to the blockchain. Do not navigate away from this screen or close the app while the transaction is being prepared.

Once the transaction is complete, you'll see the transaction hash. You can click "VIEW ON CHAIN" to view the transaction in the DeFiChain Explorer or "BACK TO POOL" to view your added liquidity in the app.

Step 7: Check your liquidity

You will now see your added liquidity above the table of available pool pairs.

Remove liquidity

Step 1: Remove

Click the minus button on the pool pair to which you have added liquidity.

Step 2: How much to remove

Enter the amount of liquidity you want to remove by either typing a percentage or using the slider. Next, select the address to which the removed liquidity should be returned. You can usually leave this field unchanged unless you want to return the liquidity to a specific address.

Then click CONTINUE.

Step 3: Confirmation

Check the amount of liquidity to withdraw and the receiving address, then click CONFIRM.

Wait for the transaction to be prepared and processed.