The DeFi space has seen strong growth in 2020 and has seen decentralized exchanges and automated market makers gain popularity in the crypto space. Liquidity mining has also been a key innovation in this development, as it allows users to earn tokenized rewards by injecting liquidity into DeFi protocols through a process called “staking” — i.e., depositing tokens into a smart contract.
Since the explosive growth of DeFi in 2020, so-called yield farmers have stored their digital assets in various decentralized offerings to maximize their portfolio returns without selling the assets themselves.
To further strengthen the DeFi ecosystem and bring more innovative offerings to users, OKX launched OKX Swap and OKX Farm, two decentralized applications built on top of OKC.
In short, OKX Swap is a decentralized automated market maker application that allows users to swap between major cryptocurrencies quickly and efficiently; OKX Farm allows anyone to create farm pools for their project where yield farmers can use their digital assets for attractive returns.
For a detailed look at OKC and its architecture and protocols, see the technical overview here.
Below is a step-by-step guide on how to swap assets with OKX Swap and participate in liquidity mining on OKX Farm.
Trade on OKX Swap
Step 1: Go to the OKX Swap page
On the OKX homepage, navigate to “Trade” in the top menu and click exchange under “DEX Trading” to open OKX Swap.
Step 2: Create/Import your OKC wallet
A digital wallet on OKC is required to trade OKX Swap. New users can navigate Create wallet in the top right corner to create one while users with existing OKC wallets can click Import wallet Continue.
In order to create a wallet, users must follow the on-screen instructions and save their password in a safe place as the platform does not store any passwords, mnemonic phrases, keystore files or private keys. Click Next Continue.
Save your mnemonic phrase and click Keep going Continue.
Complete the mnemonic phrase validation and click Confirm to complete the wallet setup.
Step 3: Enter trade details
Once your wallet is connected, you can trade across the liquidity pools in OKX Swap. In this example we exchange 100 USDT for the equivalent in OCT.
Choose through the interface USDT as sending currency and OCT as receiving currency.
Enter the amount of USDT you want to exchange and the application will automatically convert it to OCT units, which you will then receive in your wallet. Note that a 0.3% liquidity provider fee applies to each transaction. Click Confirm Continue.
Enter the password you previously set for your wallet and click OK to complete the transaction.
Step 4: Verify the transaction
After your swap has been executed, you can verify the transaction by clicking balance sheet under the wallet tab and selection Transactions record.
Add liquidity to a pool on OKX Swap
Besides trading via existing liquidity pools, users on OKX Swap can also add liquidity to existing pools.
Step 1: Go to the Pool tab and add liquidity
To add liquidity to an existing liquidity pool, go to Swimming pool Tab and click add liquidity.
Step 2: Enter liquidity pool details
In this example we will add liquidity to the OKT/USDT liquidity pool.
Choose OCT And USDT via the interface and enter the amount of OKT you wish to add to the pool. OKX Swap will then automatically calculate the corresponding amount in USDT that you need to provide.
Note that the estimated pool ratio refers to the liquidity in this OKT/USDT pool compared to all OKT/USDT pools on OKX Swap. Click Confirm Continue.
Enter the wallet password and click OK to complete the transaction. Adding liquidity to the OKT/USDT liquidity pool gives you the liquidity pool tokens that can be used in liquidity pools on OKX Farm (see below).
Step 3: Verify your transaction
After adding liquidity to a pool, you can review your transaction by clicking balance sheet under the wallet Tab.
Trade in the liquidity pool market
To browse all liquidity pools available for trading, users can go to markets Tab. The Markets page displays all available liquidity pools with relevant statistics.
Users can add liquidity directly to existing liquidity pools or trade with a click Add liquidity or Act.
Wager and earn rewards on OKX Farm
Step 1: Go to the OKX Farm page
On the OKX homepage, navigate to “Trade” in the top menu and click exchange under “DEX Trading” to open OKX Swap. Then hover over “SWAP Trade” at the top of the page and click on it FARM pool in the drop down menu to open the OKX farm.
Step 2: Choose the liquidity pool you want to participate in
Once you have acquired LP tokens for OKT/USDT as described in the OKX Swap tutorial above, go to the OKT/USDT liquidity pool under the 1st Pool tab on the OKX Farm page. The liquidity pools under the 1. Pool tab are the featured LPs in OKX Farm. Click MISSION Continue.
Step 3: Enter the stakeout details
Enter the amount of LP tokens you want to participate in the liquidity pool. In this example, we are putting 0.019 LP tokens into the OKT/USDT pool. Click Mission Continue.
Step 4: Claim rewards
You can always click to claim the staking reward tokens you have earned claim on the tab “1. Pool”. Claimed tokens are distributed to your wallet.
Step 5 (Optional): Remove LP tokens from farm pool
You can withdraw your LP tokens from the pool at any time with a click SOLVE on the tab “1. Pool”. Choose the number of LP tokens you want to sell and click on it Mark out Continue. Your LP tokens will be distributed to your wallet.
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