A few weeks ago, MIRA launched swaps — and the time has come to roll out the next update from our roadmap: Liquidity Pools! Now you can provide liquidity to MIRA while enjoying the exceptional UX and advantages provided by the Fuel Network.
In the future MIRA will offer LPs (Liquidity Providers) various options for earning incentives including our own Points program as well as the opportunity to take part in the Fuel Points program. More details and an intro to liquidity for newbies are in this article!
What is MIRA?
MIRA is an open-sourced and decentralized platform that matches three types of customers: traders, LPs, and protocols. MIRA will launch as a basic automated market maker (AMM) and will subsequently transition to ve(3,3). Its key difference from traditional DEXs will include bribes/incentive permissionless mechanisms for protocols to boost their liquidity.
Currently, we allow for token swaps on the Fuel Testnet, including BTC, ETH, and USDC. To connect to the platform, you can use any native Fuel wallet (like Fuelet), or Ethereum and Solana wallets.
Read more about MIRA protocol design and roadmap in our article.
What is Liquidity? Why is it Important to DEXs?
In crypto, liquidity is the ability to buy or sell a token with minimal impact on its price. When a token pair has sufficient liquidity, you can trade it quickly and efficiently, even when trading volumes are high, without significant loss of value.
Liquidity pools allow DEXs to provide liquidity for swaps of token pairs like USDC/ETH, USDT/BTC, and more. They make it possible for people to trade tokens 24/7, even if there isn’t someone on the other side of the trade. These pools help keep low slippage meaning it makes prices stable, so you can swap one token for another whenever you want to. Trading becomes smoother!
Why Provide Liquidity to DEXs?
People who provide their tokens to the platform by placing them into liquidity pools are called Liquidity Providers. In return for providing liquidity, they earn fees from each trade that happens and may also receive additional rewards like bribes in the upcoming ve(3,3) version of MIRA.
Become a MIRA Liquidity Provider
To add liquidity on MIRA, complete those easy steps:
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Connect any Fuel, Ethereum, or Solana wallet to MIRA.
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Click on the “Liquidity” tab.
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Select a token pair with equal value on your available balance, ex. X $ETH = Y $USDT. Note that the testnet exchange rate on MIRA might be different from real prices.
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Enter the needed value.
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Click on the “Add liquidity” button.
If you don’t have enough tokens or have only one token available, you can get a testnet $ETH faucet - and swap it for any other token with MIRA help. If you don’t have a wallet, we recommend creating an account on Fuel with Fuelet.
Done! Now you’re a MIRA LP, don’t forget to withdraw your rewards from trading fees later on.
Summary
A whole new era of testing the MIRA app has just begun! We appreciate working with our early testers, as you help us improve the platform and prepare for the Fuel Mainnet 2024.
Enjoy trading on the Fuel Network with MIRA! If you have any questions, reach out to us on our Discord. Turn on our X account notifications so you don’t miss the latest updates!