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:
This will help ensure that you are entering the pool that is a part of the LP Rewards Program.
This will take you back to the Uniswap dApp where you can create your LP position.
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.
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 This could cause a loss of funds that becomes permanent when the position is withdrawn.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.
This allows Uniswap to access the USDC and BACON in your wallet to create your liquidity position.
Clicking add will add your position to the pool.
Gas fees are variable depending on the volume on-chain. You can see an estimate of the gas costs here .
After the transaction has been submitted you can click on your liquidity position to get the full information on your pool.
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.
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. 👏🥓
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.