Our DeFi infrastructure is developing, and the $CPD token is a fuel for new DeFi services on CoinsPaid. As you may already know, its features won’t be limited by payments.
Today we introduce liquidity staking. CoinsPaid users will be able to stake $CPD and enjoy generous rewards. In this article we explain everything you need to know about liquidity staking and how to participate.
To ensure the security of our community we will be having our $CPD staking farm on Unicrypt platform.
Do not miss your opportunity to become one of the first liquidity providers, as for the first users the yield will be higher!
What is Liquidity Staking?
Liquidity Staking is the process of staking the liquidity you add to the $CPD Uniswap pools (ETH pool) and earning $CPD rewards in return.
When Uniswap liquidity providers deposit liquidity (ETH + native tokens) into a Uniswap pool, special tokens known as LP tokens are minted to the provider’s address. In addition to earning fees, Liquidity providers can also choose to sell, transfer, or otherwise use (e.g. stake) their LP tokens in any way they see fit.
Therefore, using Liquidity Staking technology, liquidity providers can actually stake the LP tokens and earn rewards for doing so.
The Reward Structures of the CoinsPaid Liquidity Staking Pools
- 500k $CPD reward: 500 000 $CPD tokens are locked in the liquidity provider pool as a reward for participants.
- Full maturity: 30 days
Those who will be among the first will have an advantage: the yield will be higher!
Why is staking an LP token valuable?
For an LP provider, you are doubly incentivized to maintain your LP token, because not only are you earning the trading fees, you are also earning rewards on top of that in the form of $CPD tokens.
CoinsPaid benefits from liquidity staking because it means our community is helping us by adding liquidity to our Uniswap pools, and then staking that liquidity during the staking period. This helps maintain liquidity and reduce slippage, which can in turn increase trading activity.
Requirements for Staking
Metamask: $CPD Liquidity Staking requires the ERC-20 wallet extension Metamask, which will automatically link to our staking contracts. This wallet will be used to contribute your token to the liquidity pool. It will also be used to distribute staking rewards upon withdrawal.
How to become a Liquid provider
- Go to app.uniswap.org and click “Pool” on the top left;
- On the Pools overview page click “More”
- Choose the following option: “v2 liquidity”;
- Click “Add Liquidity” and enter CoinsPaid contract address (0x9b31bb425d8263fa1b8b9d090b83cf0c31665355) in the token search fields.
- Click on “Supply” and confirm that you will receive a minimum of Uniswap V2 Tokens and click “Confirm Supply”.
How to find UNI V2 tokens in MetaMask
If you are going to be staking LP tokens in Liquidity Staking, then here are some tips to help you.
1. Go back to your MetaMask wallet. Click on Assets. Scroll down and click Add Token.
2. Paste the following Token Contract Address: (0x9b31bb425d8263fa1b8b9d090b83cf0c31665355)
After entering the Token Contract Address, it will display UNI-V2. Please click next.
3. Click Add Token. Now you will be able to see and manage your LP tokens in your MetaMask wallet. Remember they are ERC20 tokens, so you can transfer them to any Ethereum address.
You can now move your LP tokens from wallet to wallet.
When will $CPD LP staking be launched?
We’ll launch LP Staking this week already. Stay tuned!
For BSC network $CPD holders, the LP staking will be launched later. We will keep you updated on that.
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