How Yield Farming Works With MoonSwap

DeFi has shown people around the world that crypto investing can yield good returns. Here is how yield farming works on Monnswap.

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MoonSwap is an amazing DeFi project comprises an AMM dex that offers holders and traders significant profit-making opportunities. It runs on Ethereum layer 2 and comes with benefits, like zero gas fee and fast transaction processing.

Since becoming an innovative, workable product in 2021, MoonSwap is predicated on an execution timeframe of 20 seconds or less, thanks to the implementation of Conflux’s Tree Graph (TG) technology.

With a one-click process, you can convert your Ethereum tokens to MoonSwap tokens, also known as $MOON. Joining MoonSwap protocol comes with significant incentives. As such, liquid providers consider this AMM DEX their haven to make profits, including MoonSwap tokens, also known as ERC20 assets.

Read Also: How MoonSwap Works

Profiting Opportunities Available on MoonSwap

Holders can avail themselves of MoonSwap profit opportunities via different means. They can become MoonSwap LPs (PLPs) and earn MoonSwap tokens, transaction fees, highly appreciating FC (offered by the Conflux community), and tokens from MoonSwap’s airdrop partners. As the community expands, more incentives will come into the scene.

Farming with MoonSwap

MoonSwap can yield huge returns annually. However, you need to be a pool provider. But you cannot be if you don’t have a Web3 wallet. Hence, you can create an account with any of the following:

This wallet is what you use to move your Crypto token to the Conflux blockchain. You can get a ConfluxPortal extension. Using this extension, select the address located at the top-right area of the homepage. This will redirect you to the exchange page, where you can move your tokens. for example from ETH to cETH.

When conduction transactions on the blockchain, you do not have to pay any fee. The network takes care of that. Click approve to grant authorization on the transaction.

Becoming a Liquidity Provider (LP)

Adding liquidity to the pool is a simple process. To get the most profit, you have to be the first person to join the pool. As such, when other members conduct transactions in the pool, you earn significant profits.

However, joining the pool requires two equivalents of the tokens needed. For example, you need an equivalent of 1 ETH in USDT, which is around 2473.

Once done, you can confirm the transaction to move part of your asset to the pool. By doing so, you become an LP. Your fee income can be pegged at 0.3%. Joining the pool as the first LP gives you access to 100% of the pool’s gains. But there are risks as well, which you should take note of.

Also Read: This Is How The Celsius Network Works

Farming in the Pool

Available pools fall under Conflux, Ethereum, and the basic farm where the $MOON balance is displayed. If you have $MOON-Ethereum pair in the LP pool, you can earn tokens (PLP).

Claim your accumulating $MOON token at a zero-gas fee. Connect your Ethereum wallet to the MoonSwap to harvest your accumulated tokens automatically. Understand that farming on Conflux is easier and cheaper than on Ethereum.

How to Buy $MOON

To purchase your MoonSwap tokens, you should visit the Ethereum mainnet. Once on the platform, enter the activated token address (contract):

Some untrusted sources provide fake tokens. As such, be mindful of your transactions. It is important to have enough ETH balance in your wallet. If you do not have a wallet, create one. You will use your Ethereum wallet to make payments and also get the MoonSwap. Visit a reliable exchange, like Uniswap or Binance to get MoonSwap.

How to Trade Your Coins

You need a reliable crypto exchange to sell your coins. Some exchanges have huge trading volumes and active users that conduct transactions daily. Look for those with MoonSwap listings and register. Being on such platforms provides you with the opportunity to conduct transactions anytime. They also come with excellent trading opportunities.

Farming and investing in pools come with high risk. There may be financial losses, especially if the token is of a losing price over time. Also, there is a 0.3% trading fee. 0.25% of it goes to the liquid provider, which 0.5% is used to purchase $MOON from MoonSwap. As such, the $MOON can be destroyed.

Flowing from the above, you have to understand the risks before investing – all investments come with specific levels of risks. But above these factors, there are high potential rewards as well.

The Bottom Line

As a recap for individuals who want to farm on MoonSwap, visit the mining page and select the mining pool you want (if you are not creating one). Hold the PLP token that corresponds to the pool. Mine and stake the MLP token.

Your mining process has begun. You can “stake” and “unstake” your accumulated tokens and harvest them to your Conflux wallet. Once, you have understood the risk, reward, and process, you can decide if this DeFi is worth embarking on.

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Author: Gb Obasogie

Committed to a better you

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