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Liquidity Mining

Introduction​

The concept of liquidity mining in Sigmaswap is when a user provides liquidity to a pool and receives the LP tokens, they can further stake their LP tokens to the Sigmaswap's liquidity mining pool to mine and earn more rewards. This concept is often called yield farming.

Rewards​

Rewards in liquidity mining are provided from two sources.

  • Sigmaswap Rewards

    Commonly, a protocol that offers a liquidity mining feature gives its users the governance/utility token as the reward. Rather than making a trade, this is another way to earn these tokens. Sigmaswap provides SIGMA token, which is the utility token of Sigmaswap, as an incentive for the pools that pass our criteria, which will be announced soon.

  • Decentralized Rewards

    It is an option to all pools. Any retail users or protocols can add a token(s) of choice to a designated pool(s) as additional rewards to the LP stakers. The feature gives protocols an ability to incentivize users to hold liquidity for their target tokens in exchange with any HTS reward tokens, and to make it more accessible, it is allowed to all without any permission. It means that it is possible to have 5 or 10 HTS tokens used as rewards for a single pool.

note

For the highest yield rate, a pool can have multiple HTS tokens provided as rewards, including SIGMA and HTS tokens of choice.

Annual Percentage Rate (APR)​

APR indicates the return rate of an investment (interest rate) calculated within annual duration. The number includes any additional costs or fees required by smart contract operation, but does not incorporate compounding. For end users, APR simply means your interest rate in a year represented in a percentage.

Read more from an external article by Jason Fernando, Somer Anderson, Yarilet Perez from Investopedia.

Claiming On-Demand​

Once a user stakes their LP tokens in a pool, the amount of rewards received will appear through SigmaSwap web interfaces within seconds. They can claim the rewards to their personal wallet by these two methods:

  • One is by clicking the Claim All button. This will automatically check if the user account has already associated with all the reward tokens or not. If not, the associate screen should pop up and let the user sign. The user then approves and confirms the transaction and when it is successful, you now receive the rewards.
  • Second, a user can specifically claim a designated reward currency one by one by clicking the Claim button next to the desired token, the smart contract then runs similar processes (Association Check, Association, Contract Approval). After success, the currency is immediately transferred to your wallet.

Mining Fee​

Users are charged 1% of received rewards when make a claim. Read Fees