Starting from February 12, YGG will distribute 20,000 YGG tokens daily to YGG token holders participating in the YGG-RON liquidity pool (LP) on the Ronin decentralized exchange (DEX) Katana. YGG commits to distributing a total of 3.6 million YGG tokens over 180 days as rewards for providing YGG liquidity to the Ronin network.
Read below for more information on this latest initiative aimed at YGG token holders. Scroll down to find operational guides in English and Filipino.
Provide More Rewards to Liquidity Providers
The YGG-RON liquidity mining rewards program is designed to provide YGG community members with more ways to utilize their held tokens. This program will work in conjunction with the Guild Advancement Program (GAP) and its recent update initiatives focused on rewards, such as the Rewards Center and Staking Center, to offer more options for participating in the YGG ecosystem.
"The community is at the core of everything we do at YGG," said YGG co-founder Gabby Dizon, "which is why we strive to provide the best opportunities in Web3 gaming for our community members. Now, everyone who has been completing GAP tasks can leverage their held YGG tokens for more rewards through our liquidity provider rewards program on Ronin. This will give our most active players a way to get more utility from their YGG tokens while helping other community members in the process."
The Ronin network has become a hub for many members of the YGG community, making it an ideal starting point for such reward programs. Over the years, community members have enjoyed some iconic games on Ronin, such as Axie Infinity, Pixels, Ragnarok: Monster World, Apeiron, Kaidro, and more. Through these games, YGG players have become familiar with how to exchange YGG and in-game tokens using Ronin's Katana.
The YGG-RON liquidity mining rewards program on Ronin will launch ahead of GAP Season 9. As the season progresses, this will give task completers the opportunity to increase their YGG and RON rewards.
Contribute to the YGG-RON Liquidity Pool (LP)
Token exchanges on decentralized exchanges like Katana are facilitated through liquidity pools (LP), which are shared pools of tokens contributed by community members.
These liquidity pools maintain the liquidity of the two tokens involved in trades, allowing the decentralized exchange to execute transactions. In return, liquidity providers receive a portion of the transaction fees generated by the pool, calculated based on their contribution's share of the total value of the liquidity pool.
The 20,000 YGG tokens planned for daily distribution will also be allocated in the same manner. The larger the share contributed to the liquidity pool, the greater the portion of rewards received.
Add Liquidity to the YGG-RON Pool on Katana
Those wishing to participate as YGG-RON liquidity providers can visit the 'Liquidity Pool' section of Katana to familiarize themselves with the relevant processes. Below is a Chinese introduction to the step-by-step guide for participating in this program:
Chinese Instructions (English Translation) for Adding Liquidity to the YGG-RON Pool
To start participating in the YGG-RON liquidity pool (LP) mining rewards program, you first need to begin contributing funds to the YGG-RON liquidity pool on Ronin's official decentralized exchange (DEX) Katana.
Connect Your Ronin Wallet to Katana: Visit the Ronin application. You need to install the Ronin extension in your browser or the Ronin wallet app on your smartphone. Click 'Connect Wallet' in the upper right corner and sign the transaction to continue.
Enter Katana: In the left menu, click 'Katana' to expand the menu. Click 'Liquidity Pool' to view available liquidity pools.
Find the YGG-RON Pool: You can find this pool in the V2 pool section of Katana. Click 'Farms Only' to list the YGG-RON pool as a candidate. For security reasons, please confirm the URL before proceeding: 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 the equivalent value of YGG and RON tokens to deposit into the pool from your wallet.
Approve Transaction: If this is your first time interacting with these tokens in this way, you need to approve the system to withdraw 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 ready to proceed, click 'Confirm Add Liquidity.'
Verify Your Position: Go to the 'My Positions' tab to see an overview of the YGG-RON liquidity pool and details of potential earnings from transaction fees generated by this pool.
Note: If you do not stake your YGG-RON liquidity pool tokens, you will not be eligible to receive mining rewards.
Stake Your Liquidity Pool Tokens
Once you successfully contribute to the YGG-RON liquidity pool (LP), you can start participating in the YGG-RON liquidity mining rewards program by staking your liquidity pool tokens. After staking, you will be eligible to receive a portion of the 20,000 YGG tokens distributed daily to contributors of the YGG-RON liquidity pool.
Stake Your Liquidity Pool Tokens: After contributing to the YGG-RON liquidity pool, you can stake your earned liquidity pool tokens in a mining pool. Click the 'Stake Rewards' tab, set the amount of liquidity pool tokens you wish to stake in the pool, and confirm the transaction in your Ronin wallet.
Claim Rewards: You can claim your mining rewards directly from the 'Stake Rewards' tab of the YGG-RON liquidity pool. Katana will list your YGG-RON liquidity mining reward details in the bottom right corner of the screen. Click the 'Claim' button to redeem your currently accumulated mining rewards.
Please remember 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 the value of YGG or RON tokens appreciates and you withdraw your share from the pool, the value of the tokens you hold may be lower than if you had kept them directly in your wallet.
Before joining the YGG-RON liquidity pool mining rewards program, be sure to do your research and exercise caution. Read Ronin's articles for more information on providing liquidity on Katana:
Katana
Add or Remove Liquidity
Stake Liquidity Pool Tokens
What is Impermanent Loss?
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