Starting from February 12, YGG will distribute 20,000 YGG tokens per day to YGG token holders who participate in the YGG-RON liquidity pool (LP) on the Ronin decentralized exchange (DEX) Katana. YGG promises to take out a total of 3.6 million YGG tokens within 180 days as rewards for providing YGG liquidity to the Ronin network.
Read below to learn more about this latest initiative for YGG token holders. Scroll down to find how-to guides in English and Tagalog.
Providing more rewards to liquidity providers
The YGG-RON Liquidity Mining Rewards Program is designed to provide YGG community members with more ways to leverage their tokens. The program will work in synergy with recent rewards-focused updates to the Guild Advancement Program (GAP), such as the Rewards Center and Staking Center, to provide more options for participating in the YGG ecosystem.
“Community is at the heart of everything we do at YGG,” said Gabby Dizon, co-founder of YGG. “That’s why we work hard to provide our community members with the best opportunities in the Web3 gaming space. Now, everyone who has been completing GAP tasks can use their YGG token holdings to earn more rewards through our Liquidity Provider Rewards Program on Ronin. This will provide a way for our most active players to get more utility from their YGG tokens while helping the rest of the community in the process.”
The Ronin network has become home to many members of the YGG community, making it an ideal starting point for a rewards program like this. Over the years, community members have come to enjoy iconic games on Ronin, such as Axie Infinity, Pixels, Ragnarok: Monster World, Apeiron, Kaidro, and many more. Through these games, YGG players have become familiar with how to convert between YGG and in-game tokens through Ronin’s Katana.
The YGG-RON liquidity mining rewards program on Ronin will be launched on the eve of GAP Season 9. This will give task completers the opportunity to increase their YGG and RON rewards as the season progresses.
Contribute to the YGG-RON Liquidity Pool (LP)
Token exchange on decentralized exchanges like Katana is achieved through liquidity pools (LP), which are shared pools of tokens contributed by community members.
These liquidity pools maintain liquidity for the two tokens involved in a trade, enabling decentralized exchanges to execute trades. In return, liquidity providers receive a percentage of the trading fees generated by the pool. This percentage is calculated based on the liquidity provider's contribution as a percentage of the total value of the liquidity pool.
The 20,000 YGG tokens scheduled for distribution every day will also be distributed in the same way. The greater the share an individual contributes to the liquidity pool, the greater the share of rewards he or she will receive.
Adding liquidity to the YGG-RON pool on Katana
Those who wish to participate as a YGG-RON liquidity provider can visit the "Liquidity Pool" section of Katana to familiarize themselves with the relevant process. The following is a Chinese introduction to the step-by-step guide to participate in the program:
Chinese Instructions (English Translation) Adding Liquidity to the YGG-RON Pool
To start participating in the YGG-RON Liquidity Pool (LP) Mining Rewards Program, you first need to start contributing funds to the YGG-RON Liquidity Pool on Katana, the official Ronin decentralized exchange (DEX).
Connect your Ronin Wallet to Katana: Access the Ronin app. You will need to install the Ronin extension in your browser, or the Ronin Wallet app on your smartphone. Click “Connect Wallet” in the top right corner, and sign the transaction to proceed.
Enter Katana: In the left menu, click "Katana" to expand the menu. Click "Liquidity Pools" to view available liquidity pools.
Find the YGG-RON pool: You can find the pool in the V2 pool section of Katana. Click "Farms Only" to shortlist the YGG-RON pool. For security reasons, please confirm the URL before continuing: https://app.roninchain.com/liquidity/0x6ead2a36fdc4a538c0c51a4380fa4d19de790a72
Add tokens to the pool: Decide how much liquidity you want to provide to the pool. Katana will calculate an equal value of YGG and RON tokens to deposit into the pool from your wallet.
Approve the transaction: If this is your first time interacting with these tokens in this way, you will need to approve the transfer of a set amount of YGG and RON tokens from your wallet when prompted.
Review and Confirm: Verify the details of your contribution, including the amount of liquidity pool tokens you will receive and your share of the pool. When you are ready to proceed, click “Confirm Add Liquidity”.
Verify your position: Visit the My Positions tab to see an overview of the YGG-RON liquidity pool and a breakdown of your potential earnings from the trading fees generated by the liquidity pool.
NOTE: If you do not stake your YGG-RON liquidity pool tokens, you will not be eligible for mining rewards.
Stake your liquidity pool tokens
Once you have successfully contributed to the YGG-RON liquidity pool (LP), you can start participating in the YGG-RON liquidity pool mining reward program by staking your liquidity pool tokens. After staking the liquidity pool tokens, you will be eligible to receive a portion of the 20,000 YGG tokens allocated daily to YGG-RON liquidity pool contributors.
Stake your liquidity pool tokens: After contributing to the YGG-RON liquidity pool, you can use the liquidity pool tokens you earn to stake them into a mining pool. Click the “Farm rewards” tab, set the amount of liquidity pool tokens you wish to stake into the mining pool, and then confirm the transaction in the Ronin wallet.
Claim Rewards: You can claim your mining rewards directly from the “Staking Rewards” tab of the YGG-RON liquidity pool. Katana will list your YGG-RON liquidity pool mining rewards details in the lower right corner of the screen. Click the “Claim” button to redeem your currently accumulated mining rewards.
Keep in mind that participating in liquidity pools requires a deeper understanding of decentralized finance (DeFi) and Web3. Contributing funds to liquidity pools carries certain risks, including the possibility of impermanent loss. If YGG or RON tokens appreciate in value and you withdraw your share from the pool, the tokens you hold may be worth less than if you had kept them directly in your wallet.
Before joining the YGG-RON liquidity pool mining reward program, be sure to do your research and use caution. Read Ronin's article to learn more about providing liquidity on Katana:
Katana
Adding or removing liquidity
Staking liquidity pool tokens
What is impermanent loss?
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