Discover the potential of $MOOVE farms: maximize your yields

MOOVE, cowcow, sphere, multiversx, EGLD

Sommaire :

The MOOVE farm presents an opportunity to maximize $MOOVE returns.
Before delving into the details, let’s explore what providing liquidity entails and how it can benefit you.

The farms are full, but from time to time space becomes available, as we say FCFS!
Don’t hesitate to check from time to time if space is available.

Understanding Liquidity Provision

What is Adding Liquidity?

In an LP Farm, users deposit cryptocurrency into a smart contract that powers a liquidity pool.

This pool acts as a decentralized trading pair between two cryptocurrencies. To create a MOOVE-USDC LP token, you deposit an equivalent value of Token A (MOOVE) and Token B (USDC), ensuring a balanced pairing.

The LP token is generated on-chain and can be easily tracked using the MultiversX explorer at explorer.multiversx.com/tokens?search=mooveusdc.

It’s important to note that while LP tokens are typically supra-unitary, in our case, they are sub-unitary.

How to Add Liquidity?

Adding liquidity is a straightforward process that occurs directly on the decentralized exchange, xExchange.

Once liquidity is added, the equivalent LP token is created. At this point, you become a holder of this token, entitling you to a share of the fees generated by the trading pair on the exchange.

For instance, if you possess 10% of the pool, you will receive 10% of the fees generated by that specific pool.

Impermanent Loss: A Risk Explained

Understanding Impermanent Loss

Impermanent loss is a potential risk when participating in DeFi Liquidity Pools. It occurs when the prices of your deposited assets fluctuate from the time of deposit.

Consider this example:

  • Deposit Moment: June 23rd, 19:00 UTC
    • Token A (MOOVE) Price: $0.2
    • Token B (USDC) Price: $1
    • Ratio: 0.2
    • Total in the pool: $5 (5 x MOOVE = 1 USDC)
  • Withdrawal Moment: June 24th, 19:00 UTC
    • Token A (MOOVE) Price: $0.4
    • Token B (USDC) Price: $1
    • Ratio: 0.4
    • Total in the pool: $2.5 (2.5 x MOOVE = 1 USDC)

MomentToken A (MOOVE)Token B (USDC)RatioTotal in the Pool (USDC)
June 23rd, 19:00$0.2$10.2$5.00
June 24th, 19:00$0.4$10.4$2.50

Without accounting for any fees earned during this period, withdrawing your assets at the later moment results in the quantity of MOOVE in the pool being reduced by half, while the quantity of USDC doubles.

For more details on “Impermanente Loss”, see our article.

MOOVE Farming launched

What is $MOOVE Farming?

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Farming, in this context, refers to staking the LP tokens you’ve acquired.

The rewards for farming can be provided in any token, as determined by the pool creators (in our case, rewards will be in $MOOVE).

The LP farm functions as a standard staking pool, where users deposit their LP tokens to earn rewards.

The primary objective of creating an LP farm is to bolster the liquidity of the MOOVE-USDC pair, ultimately enhancing the token price.

In conclusion

$MOOVE Farms offers a unique opportunity to maximize your crypto holdings through LP token staking

. By gaining a thorough understanding of liquidity provision, impermanent loss, and $MOOVE Farming, you can make informed decisions to optimize your crypto portfolio.

Please note that this article is for informational purposes only, and readers are encouraged to conduct research before engaging in any financial activities related to MOOVE or Cow Cow.

For any further questions or inquiries, please refer to the FAQ section below.

FAQ

Q: How can I add liquidity to the MOOVE-USDC pair?

A: You can add liquidity directly on the decentralized exchange, xExchange, by depositing an equivalent value of MOOVE and USDC.

What is impermanent loss, and how can I manage it?

Impermanent loss occurs when the prices of your deposited assets fluctuate. To manage it, consider the timing of your deposits and withdrawals, and take into account any fees earned during your participation in the liquidity pool.

What are the rewards for $MOOVE Farming?

The rewards for $MOOVE Farming are distributed in $MOOVE tokens and can be earned by staking your LP tokens in the farm.

How does $MOOVE Farming benefit the MOOVE-USDC pair?

$MOOVE Farming serves to increase the liquidity size of the MOOVE-USDC pair, ultimately strengthening the token price and enhancing the trading experience for users.

Useful links

CowCow official website: https://www.cowcow.io/
Official CowCow Twitter: https://twitter.com/wecowcow
Official Discord: https://discord.gg/two3labs
French Discord : https://discord.gg/6SYuVba94N
Register on xPortal : https://xport.al/referral/xr5fvolpf4

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