Everything you need to know about Play It Forward DAO’s Liquidity Staking
Play It Forward DAO has partnered with Uniswap for its Liquidity Staking. If you are not familiar with Liquidity Staking, Play It Forward DAO got your back. Find out what Liquidity Staking is, how it works and why should you participate in it by reading below:
What is Liquidity staking?
Liquidity Staking is where you stake your crypto assets in exchange for rewards. In our case, you will stake a trading pair of ERC-20 tokens — typically Ethereum (ETH) or USD Coin (USDC) paired with another altcoin (in this instance, $PIF).
Through Liquidity Staking, a liquidity pool will be opened for crypto traders and investors. Investors can then interact with the liquidity pool smart contract to purchase or sell $PIF tokens. Thus, you will be acting as a market maker/liquidity provider for $PIF tokens in exchange for a share of the total fees (proportional to your share of the pool).
Typical liquidity pools will pay out a portion of the fees earned by the pool to LP holders (see below). Further, if you stake your LP tokens via our staking website at staking.playitfwd.io, you have the opportunity to earn $PIF rewards via our LP staking program.
Why should you be a Liquid Provider?
As a Liquid Provider (LP), you will receive rewards in proportion to the share of the liquidity you provided in the pool by earning a percentage of the trading fees in the network. In Uniswap, whenever a trade occurs, a 0.3% fee will be distributed to all the LPs in the pool. It is up to you if you are going to sell, transfer or stake your earned tokens.
At PIF, we will also be providing further benefits to LP holders by allocating a staggering 80% of the staking rewards to the LP staking pool (accessible via staking.playitfwd.io). What this means is that the LP staking pool will earn up to 24 million of $PIF tokens in the first year alone (~2 million $PIF a month).
It is important to note while you have the opportunity to get large returns from providing and staking liquidity, you are also exposed to Impermanent Loss (IL explained: https://academy.binance.com/en/articles/impermanent-loss-explained) — hence the allocation of a greater share of the rewards pool to reward our tokenholders for the additional risk due to IL.
How to become an LP
To successfully become an LP, you need to connect your MetaMask wallet to Uniswap first. Your Metamask wallet will be used to send your token to the liquidity pool and distribute staking rewards. Here’s a step-by-step process on how to participate as PIF’s Liquidity Provider.
- First, go to Uniswap’s website and click “Pool” on the top left. Click here to access the direct link to Play It Forward’s Uniswap link.
- Then, click “Add Liquidity” and enter Play It Forward’s contract address in the token search field. Here’s our contract address: 0xB30F5d11b94efBBfDeaa4de38eDFFCeEc0bE6513
- Once done, click “Supply” to confirm that you will receive an estimated Uniswap V2 Token depending on the number of assets you’ve staked. After reviewing the data shown on the screen, click “Confirm Supply”.
How to stake [$PIF] Uni-V2 Pool tokens
Learn how to stake it by following the steps below:
- Go to Play It Forward DAO’s staking website.
- Connect your MetaMask account and click “Stake”.
- You will be redirected to PIF’s liquidity page where you will select whether you will be staking in Flexible or Locked terms.
- Then input the amount of Uni-V2 tokens you want to stake.
- After reviewing the details and ensuring that the amount is correct, press “Confirm”.
About Play It Forward DAO
Play It Forward DAO is a metaverse eco-system builder with a focus on Web3 game investment and a large-scale guild of 3,000+ gamers (Railings University) across the Philippines, Indonesia, and Vietnam.
The company is positioned to provide broad access to play-to-earn gaming by educating, empowering, and integrating underprivileged communities into the P2E industry. PIF DAO is positioned to be the growth engine of a Plug-and-Play metaverse by allowing its members to invest, play, learn and earn.