How to LP and Earn $BACON on Uniswap

I2han.eth
0xD884
BaconCoin
0xC938
April 19th, 2022

Liquidity is the bread and butter of DeFi and we’re proud to be cooking up our new LP rewards program distributing 10,000,000 $BACON tokens to liquidity providers over 12 months.

In this post we will walk you through the process of creating a liquidity position on Uniswap; You’ll learn how to deposit into the Uniswap liquidity pool in order to earn extra $BACON proportional to the percentage of your ownership stake of the pool. For example, if you own 1% of the liquidity pool, you’ll be distributed 1% of the weekly tokens given to the pool.

Before beginning the process you’ll need:

  • A wallet to connect to the Uniswap application
  • $ETH for gas fees
  • $BACON and $USDC to create the LP
  • A big plate of bacon to reward yourself when the job is complete 🥓

1. Go to the Uniswap Analytics page for USDC-BACON

This will help ensure that you are entering the pool that is a part of the LP Rewards Program.

2. Click on “Add Liquidity”

This will take you back to the Uniswap dApp where you can create your LP position.

Click on Add Liquidity
Click on Add Liquidity

3. Confirm the Pair is Correct and set Liquidity Range

This will allow you to increase the efficiency of your position by only allowing your liquidity to be used over a specified price range. Feel free to adjust the range as you see fit.

Confirm the Pair is Correct and set Liquidity Range
Confirm the Pair is Correct and set Liquidity Range

4. Enter the Amount That You Want to Input Into the Pool

The position is ~50/50 between both assets (ex. $100 worth of ETH and $100 worth of USDC).

NOTE: This pool is susceptible to Impermanent Loss (IL). This could cause a loss of funds that becomes permanent when the position is withdrawn. Learn more about IL and the risks involved.

Enter the Amount That You Want to Input into the Pool
Enter the Amount That You Want to Input into the Pool

5. Approve USDC and BACON

This allows Uniswap to access the USDC and BACON in your wallet to create your liquidity position.

Approve USDC and BACON
Approve USDC and BACON

6. Click on Preview

Click on Preview
Click on Preview

7. Add your LP to the pool

Clicking add will add your position to the pool.

Add your LP to the pool
Add your LP to the pool

8. Confirm the Transaction with your Wallet

Gas fees are variable depending on the volume on-chain. You can see an estimate of the gas costs here .

Confirm the Transaction with your wallet
Confirm the Transaction with your wallet

9. Once the Transaction has been Approved Click Close

Once the Transaction has been Approved Click Close
Once the Transaction has been Approved Click Close

10. Click on Your New Pool Position

After the transaction has been submitted you can click on your liquidity position to get the full information on your pool.

Click on your new Pool Position
Click on your new Pool Position

11. Pool Overview

This is the overview of your LP. This will give you information on the pool and the amount of fees you're collecting on trades between USDC-BACON.

Pool Overview
Pool Overview

Voilà! You’ve now cooked up a beautiful LP on Uniswap V3, providing liquidity over a specific price range to maximize your capital efficiency.

Not only have you been able to passively accrue trading fees from the pool, but you’ve also helped solidify the $BACON ecosystem while receiving a sweet NFT representing your LP in your wallet!

Now the last step is to chow down on that plate of bacon as a reward for a job well done.  👏🥓

To stay up-to-date with Bacon Protocol, our LP rewards programs, or anything else we have cookin’ follow us on Twitter and join us on Discord!

About Bacon Protocol

Bacon Protocol is a decentralized platform for purchasing mortgages. We give consumers access to the same financial products banks, governments, and institutions use to preserve and grow wealth. Using a novel, asset-backed stablecoin, we help homeowners by giving them faster, more flexible, and more competitive loans while adding a new building block to DeFi and bridging the gap between the physical and Web3 worlds.

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