Special Pools and Farm High Yield

What are Special Pools?

LOOP DEX Special Pools helps quality NFT and non-NFT projects distribute their tokens to a wider audience while allowing crypto users and investors to generate attractive returns in a form of new tokens. This is an innovative solution that gives advantages to both users and quality crypto projects.

Farmers can earn the new token for a total of 20 days. The first seven of those days are before the token is listed on LOOP DEX Swap, at which point farmers can immediately trade any tokens they have earned.

The tokens farmers earn are distributed to them daily, and they can add or remove tokens they have subscribed to the eligible pools at any time.

Special Pools are the simplest way to earn free tokens on LOOP DEX. Stake LOOPS, earn free tokens. It’s really that easy.

Liquidity Pool

LOOP DEX pools allow you to provide liquidity by adding your tokens to Liquidity Pools.

When you add your token to a Liquidity Pool you will receive Liquidity Pool (LP) tokens and share in the fees.

LP Tokens

As an example, if you deposited LOOPS and BUSD into a Liquidity Pool, you would receive LOOPS-BUSD LP tokens.

The number of LP tokens you receive represents your portion of the LOOPS-BUSD Liquidity Pool.

You can also redeem your funds at any time by removing your liquidity.

Earn from trading fees

It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. Whenever someone trades LOOPStarter, the trader pays a 0.3% fee, of which 0.2% is added to the Liquidity Pool of the swap pair they traded on.

For example:

  • There are 10 LP tokens representing 10 BNB and 10 BUSD tokens.

  • 1 LP token = 1 BNB + 1 BUSD

  • Someone trades 10 BNB for 10 BUSD.

  • Someone else trades 10 BUSD for 10 BNB.

  • The BNB/BUSD liquidity pool now has 10.02 BNB and 10.02 BUSD.

  • Each LP token is now worth 1.0002 BNB + 1.0002 BUSD.

To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the Farms, while still earning your 0.3% trading fee reward.

Farm high yield

Yield Farming in Farms is a great way to earn LOOPS rewards on LOOP DEX.

Unlike Special Pools, Farms require you to stake two tokens to get LP Tokens, which you then stake in the Farm to earn rewards. This lets you earn LOOPS while still keeping a position in your other tokens!

Yield farming can give better rewards than Special Pools, but it comes with a risk of Impermanent Loss. It’s not as scary as it sounds, but it is worth learning about the concept before getting started.

Check out this great article about Impermanent Loss from Binance Academy to learn more.

Getting prepared

Yield farming takes a little work to get set up.

You’ll need some "LP Tokens" to enter into a Farm with. Farms can only accept their exact LP Token; for example, the LOOPS-BUSD Farm will only accept LOOPS-BUSD LP Tokens. To get the exact LP Token, you'll need to provide liquidity for that trading pair. So to get LOOPS-BUSD LP Tokens, you'll first have to provide liquidity for the LOOPS-BUSD pair.

It may sound intimidating, but it's not too complicated. Let's go through step by step.

Go to Farms

Before you proceed, you'll want to choose a Farm that's right for you. Visit the Farms page and you’ll see a list of available Farms.

When you find a Farm that you'd like to use, note down the trading pair, e.g. LOOPS-BUSD in case you need it later.

We will add more Farms pools in the future.

Providing liquidity to get LP Tokens

Now that you've found a Farm to stake in, you will need to add liquidity to get your LP Tokens.

1. Click on the Details of the Farm you've chosen from the list. It will open to show more details.

2. On the left, you'll see some links. Click the Get (your pair) LP link. This will open the Add Liquidity page for your Farm's pair.

Putting your LP Tokens into a farm

Now that you have your LP Tokens, you’re ready to start staking them in a Farm and earning rewards!

Putting your LP Tokens into the Farm

1. Go back to the Farms page and locate your Farm.

When you’re ready, click the Approve Contract button and confirm your action in your wallet.

2. After a short wait, the Enable button will change to Stake LP. Click it and a new window will appear.

Type the amount of LP Tokens you would like to farm into the field, or just click Max to use all of your LP Tokens.

3. When you have the amount entered, the Confirm button will light up. Click it. Your wallet will ask you to confirm your action.

4. After a short wait, the window will close, and you will see your new staked LP Token balance in the details.

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