How to Provide Liquidity (LP Staking)

Providing liquidity is the most impactful way to contribute to the AetherCycle ecosystem's health and stability. By becoming a Liquidity Provider (LP), you not only earn the highest share of protocol revenue but also help create a deep and efficient market for AEC for everyone.

This guide will show you how to use the integrated tools in the AetherCycle dApp to create LP tokens and then stake them to earn rewards.

Before you begin, make sure you have:

  • A compatible Web3 wallet (e.g., MetaMask).

  • An equal value of both AEC and the official stablecoin (e.g., USDC) in your wallet.

  • ETH in your wallet to pay for gas fees.


Part 1: Creating Your LP Tokens

First, you need to combine your AEC and stablecoin into LP tokens. This is all done within the AetherCycle dApp.

  1. Navigate to the Swap Page After connecting your wallet, select the "Swap" tab from the main navigation menu. You will see an interface for swapping, adding, and removing liquidity.

  2. Select the "Add Liquidity" Tab Click on the "Add Liquidity" tab. This will open the interface for creating your LP tokens.

  3. Input Your Amounts Enter the amount of AEC or USDC you wish to provide. The dApp will automatically calculate the required amount of the other token to maintain a 50/50 value ratio. The "Liquidity Details" section will give you a preview of your share in the pool.

  4. Approve & Add Liquidity

    1. Approve: You will need to approve the contract to spend your AEC and USDC. This is a standard, one-time transaction for each token. Click "Approve" for both tokens and confirm in your wallet.

    2. Add Liquidity: Once the approvals are confirmed, the "Add Liquidity" button will become active. Click it and confirm the final transaction.

Once the transaction is complete, you will receive AEC/USDC LP tokens in your wallet. These tokens represent your share of the liquidity pool.


Part 2: Staking Your LP Tokens

Now that you have your LP tokens, it's time to stake them to start earning from the highest-yield pool.

  1. Navigate to the Staking Page Select the "Staking" tab from the main navigation menu.

  2. Select the "LP Token Staking" Pool Make sure the "LP Token Staking" tab is active. You will see the dashboard for staking your newly created LP tokens.

  3. Choose Your Staking Tier Select your desired lock-in period to get a reward multiplier. Locking your LP tokens here can significantly amplify your returns.

    • Flexible (1.0x Rewards): No lock.

    • Monthly (1.1x Rewards): 30-day lock.

    • Quarterly (1.3x Rewards): 90-day lock.

    • Semi-Annual (1.6x Rewards): 180-day lock.

  4. Approve & Stake

    1. Enter Amount: Type the amount of LP tokens you wish to stake.

    2. Approve: If it's your first time, click "Approve" to allow the staking contract to access your LP tokens. Confirm in your wallet.

    3. Stake: After approval, click the "Stake LP Tokens" button and confirm the final transaction.

That's it! Your LP tokens are now staked and earning the highest rewards in the AetherCycle ecosystem. You can track your rewards and manage your position, including withdrawing (once unlocked) and claiming rewards, directly from this dashboard.

Last updated