Becoming a LP (liquidity provider)

Providing liquidity in exchange for LP tokens is the magic sauce of decentralized exchanges (DEX) like Uniswap, Quickswap and the likes. Everyone can do it and earn a passive income in the trading fees. It is one of the pillars of decentralized finance (DeFi).

LP Tokens

You send an amount of your choice in 2 tokens (e.g. $50 in MATIC and $50 in FFOOD for a total of $100) to the DEX’s swap pool and receive LP tokens (e.g. 10 LP tokens that represent the MATIC/FFOOD pair), effectively becoming an LP. Traders can now use this pool to buy and sell $FFOOD tokens for/with $MATIC. The more LPs the pair has, the more liquid it becomes and the higher the volume that can be exchanged. Each swap on QuickSwap costs 0.3% in fees that is paid out directly to the LPs according to their percentage of the pool. You can always exchange your LP tokens back for the input tokens (even though the ratio may be a bit different over time).

LP Staking Program

Now, you have become an LP and earn fees with your LP tokens. Why would you stake your tokens in the RatAlert LP staking pool? Because you can earn more food tokens! 10% of the supply of all 3 tokens is reserved for liquidity providers. Your rewards share is proportional to the amount of liquidity you provide, and is distributed in realtime! There is no additional risk or lockup, you can always unstake all your LP tokens anytime.

OK, how do I do it?

Let’s get LP tokens first.

1. Go to the QuickSwap pool for $FFOOD, $CFOOD or $GFOOD. Clicking FOOD token links will take you directly to the QuickSwap Liquidity page of the respective token.
2. Enter an amount on either side. It will calculate the amount required on the other side. You will need supply 50% in both tokens at both sides, as it is a 50/50 liquidity pool.
3. The token may need to be approved first, otherwise hit Supply. After a few seconds, you have your LP tokens and have become an LP!

Adding liquidity on QuickSwap

Now let’s stake those LP tokens in the RatAlert LP staking pool.

1. Go to the Staking pool for $FFOOD, $CFOOD or $GFOOD.
2. Click Stake and enter the amount of LP tokens you wish to stake. Allow transfer and and then hit Stake.
3. After a few seconds, your tokens are staked and you can see your Claimable rewards in real time!

Staking LP tokens on the RatAlert staking page

Need more help? The team is always on in our Discord.