Hello Riders,
In DeFi, getting the most bang for your buck is important, also known as capital efficiency. If you know how to use the DEX and all the services it offers, you are on the right track. That’s why we decided to write a handy guide to maximizing your returns with WingRiders, walking you through the various services that can help you achieve this.
There are currently five tiers of reward opportunities in DEX: Swap Fees, ADA Staking, Yield Farming, Double Yield Farming, and Boosting. Let’s go through them all step by step.
To start, you need a Cardano wallet with some ADA in it. To set it up, watch our How to get started with WingRiders video.
In addition to ADA, you need at least one other asset. That’s because you need to provide DEX users with two assets in a liquidity pool and as a reward, you get a share of the fees they pay for each swap transaction within the liquidity pool. In this example, we’re using DRIP as the other asset because you’re entitled to even more rewards in later stages. If you only hold ADA and want to get DRIP or some other asset, you can just trade some ADA in the exchange area.
Here’s the swap video to walk you through the process.
Now that you have ADA and DRIP in your wallet, deposit them into their respective liquidity pool to use for swaps and in return you are entitled to two tiers of rewards at once: First – a portion of the transaction fees we mentioned. Second – the ADA you contribute to the pool is automatically staked, which also gives you staking rewards.
So to provide liquidity navigate to the Pools section of the interface and you will see all available liquidity pools. There are currently 196 pools, but remember that only those that contain ADA will qualify you for the ADA staking rewards. Also, not all pools have an associated farm for further gains. If you want to maximize your profits, you need to add liquidity to a pool with a farm. You can tell if a pool has a farm by the tractor icon. In this example we are adding liquidity to the ADA/DRIP pool that provides the ADA staking rewards and it also has a next level yield farm.
When making a decision to add liquidity, you should know and understand all of the following terms:
- The Fees 24h and Fees 7d are the fees this pool generated in dollar value from swappers in the last 24 hours and the last 7 days.
- The pool APR breakdown is very important to know how profitable the pool is for you. It is made up of the fees and staking rewards as a percentage returned to that pool. The higher the APR, the better, of course.
- The LP Tokens Issued shows the number of liquidity provider tokens issued for this pool. They are issued when you add liquidity to a pool and represent the portion of the pool that you have provided.
- Understand the principle that providing liquidity in any pool also exposes you to temporary loss.
To see the full guide to providing liquidity and auto-staking, watch our How to Stake video. Once there you can see that you have provided liquidity in the ADA/DRIP pool in the pools section and also in staking.
For providing the liquidity, you receive liquidity provider tokens or simply LPTs. They are displayed in your wallet and for further income you have to deposit them with an appropriate farm. The longer you keep your LPTs locked in a farm, the higher your profits will be. So let’s get to farming.
Similar to the pools, when considering the right farm, note the key information that appears under each farm:
- My Effective Liquidity is the amount of cash deposited from which your rewards are calculated. To win the most, make sure to deposit the liquidity into the farm before the start of an epoch and keep it there for the duration of the entire epoch, i.e. 5 days.
- The effective farm liquidity represents the total effective liquidity of all farmers for that epoch.
- Current Epoch Rewards are the total rewards shared between all farmers for the current epoch in that farm and the form of the rewards, in this case WingRiders tokens or simply WRTs and DRIP tokens as this is a double yield -Farm is which not only earns you WRTs but also DRIPs.
- Estimated WRT earnings for the epoch provide insight into the future profits that will result from this farm. This allows you to see up to 10 days ahead. The current Epoch rewards will not change. The reward numbers of the next epoch will not change with a probability of 99%. Additionally, if you hover over the APR %, you can see the next epoch’s APR % breakdown.
- Earned Rewards shows all the rewards you have earned in all previous epochs.
Now find the relevant farm, in this case ADA/DRIP, and press Deposit to lock your LPTs in that farm. Choose the amount of your LPTs you want to deposit, confirm it in the app and in your wallet and wait for the transaction to complete. Now you are a farmer reaping the profits of the farm you just deposited into. Note that when you change epochs after your deposit, you will start collecting your first farming rewards, and you can then harvest them at the end of each full epoch.
There are single and double yield farms. On a single yield farm like this. In a single-yield farm, you get one type of reward, which is WRTs. In a dual yield farm, specifically ADA/DRIP, you will get two types of rewards – both WRTs and DRIPs.
Therefore, at this point, you earn quadruple rewards: fees, ADA staking, WRTs, and DRIPs.
Once you get some rewards after the epoch ends, you can harvest those rewards. They will not be air-dropped into your wallet, you have to do it manually by pressing the Harvest button. Just confirm it in the UI and then wait in your wallet for the transaction to complete and you will see the harvested tokens in your wallet.
The last, fifth level that will further increase your winnings is the Boosting Vault. Simply put, by locking your WRTs in it, you increase the amount of rewards from each farm you are in. Just make sure the farm has boosting enabled as not all farms do. You can tell whether the boosting applies to a farm by the lightning symbol. Now let’s see how it works:
In Farming you can see the Boosting Vault. It shows:
- The next epoch’s max rewards – this is the maximum amount of boosting rewards you are entitled to for all farms you are in if you deposit the maximum effective WRTs into the vault.
- Next Epoch Estimated Bounty is the total amount of bounty you should receive in the next epoch based on your currently deposited liquidity in farms and WRTs in the Vault.
- Deposited Boost WRTs are your vaulted WRTs. The more WRTs you deposit, the more rewards you will receive from the maximum you are eligible for.
Now let’s deposit some WRTs in the vault and see what it does. You can escrow the WRTs you hold in your wallet. So if you want to deposit WRTs earned from farming, you need to harvest them into your wallet from WingRiders. Now click on the boost. The amount you deposit is up to you. What you should know is that the boosting rewards for a farm are based on two factors:
First is your effective liquidity in the farm. Just like with farming rewards, the more liquidity you have on the farm, the more farming and boosting rewards you will get.
Second, the amount of rewards from boosting reflects the number of WRTs you deposit and is calculated by a function similar to a logarithmic curve. The function has an upper bound with a limit. So if you deposit more WRTs than the amount that gives the maximum allowable boosting rewards, you will not receive more than that maximum amount. Unless you provide more liquidity to the farm.
This curve is interactive and works like a slider. You can use it to determine the best number of WRTs you can personally deposit. You can also just press the MAX button to get an estimate of your next Epoch Boosting rewards with all the current WRTs you are holding. Or you can enter an exact number of WRTs you wish to deposit. Confirm it here in your wallet and wait for it to complete like any other transaction.
The boosting rewards are calculated by epoch and automatically added to your boosting vault to maximize your future rewards. This is done automatically for your convenience. If you want to withdraw the additional rewards instead, simply decrease the number of deposited tokens to your previous amount.
With the WRTs in the vault, you can now see how this affects your yields from the farms:
Current Epoch Boosting Rewards. The first number shows how many WRTs you should get from boosting, based on your currently deposited liquidity in that farm and the WRTs in the vault. The second number represents the estimated maximum you are entitled to if you have deposited the maximum effective amount of WRTs.
Next Epoch Boosting Awards shows the estimated boosting awards you are eligible for in the next epoch.
Given all of this, you can see that the boosting feature comes in very handy, especially for the smaller liquidity providers:
The logarithmic curve offers generous rewards for those who lock a smaller amount of tokens instead of a large amount of them.
The boosting rewards are compounded in the Vault, automatically increasing your deposit and earnings with each epoch.
To grow your deposit you only need WRTs, no need to also deposit ADA like you would in farming.
Finally, you don’t have to withdraw your rewards after each epoch as they are automatically compounded, saving you on transaction fees.
In summary, here’s how to maximize your returns on WingRiders:
- Provide liquidity to a pool to receive a portion of the fees
- Receive ADA staking rewards from every ADA you deposit
- Turn in your LPTs in the associated farm for farming rewards.
- Choose a double yield farm to get not only WRTs but also other tokens.
- Put your WRTs in the Boosting Vault to increase your rewards from each farm.
The best way to maximize your returns is by doing it, and we hope this step-by-step guide will help you get started if you haven’t already.
wing rider
Original Source: https://medium.com/@wingriderscom/maximizing-yields-on-wingriders-walkthrough-ceb0237…
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