What Is PoolStake?
PoolStake is a decentralised smart contract built to make providing liquidity to Uniswap more profitable as well as reducing the risks of impermanent loss. It works exactly the same as providing liquidity directly on Uniswap but with the addition of staking.
LP Staking
When providing liquidity to any Uniswap pool, LP tokens are generated to represent the amount of the liquidity that was deposited. When you provide liquidity via the PoolStake contract, your deposit is sent to Uniswap as usual, but the LP tokens that are generated are automatically staked in the PoolStake contract for the period of time you selected to stake.
Staking Bonuses
While your LP tokens are staked in the contract, they will be continuously earning a steady return in either one or both of the tokens you provided into liquidity. Unlike the revenues that you will earn from Uniswap trading fees, Staking Bonuses are predetermined. This means that before you enter the pool you can see exactly what your returns will be and you can withdraw them pro-rata along the staking term at any time.
Staking Periods
Staking Bonuses are provided by the projects who’s pools you are entering and they will reward you with better returns based on longer staking periods. When you join a pool you will have up to 4 choices on how long you want to provide liquidity for, longer periods will generally result in a larger APY. Once a staking period is over, you can withdraw your liquidity or restake your LPs for another term to earn more Staking Bonuses.
Reduced Risk
Providing liquidity via Uniswap directly provides no guarantee on the amount of return you will receive. This is due to many factors such as the size of the pool, the amount of trade volume and the fluctuations in price between the two tokens in the pool. Providing liquidity via PoolStake reduces these risks as the Staking Bonuses received are set in stone and this in turn can help offset many risks including impermanent loss.
How it Works
Find Pool
Depending on the pool you join, you can earn Staking Bonuses in either one or both of the tokens in the pair. You can browse through the available pools and choose the best pool for you. Of course if you wish to provide specific liquidity to a specific token, you will have to check to see what they are offering and in what terms.
Join Pool
Just like providing liquidity via Uniswap directly, PoolStake requires you to have both sides of the trading pair to enter. When joining via PoolStake you need to also select how long you wish to stake your LP tokens for and, once joined, your tokens will be staked in the contract for the entirety of the period you selected.
Withdraw Profits
Portions of your Staking Bonuses can be withdrawn at any time along the staking period or all at once at the end of the term. The tokens you provided into liquidity and your profits from Uniswap trading fees can be withdrawn at the end of the staking period and attract no additional fees compared to providing directly via Uniswap, Staking Bonus profits are made possible by the Unistake platform, which requires a 10% fee paid in UNISTAKE at the point of each withdrawal.
PoolStake Example
to join with desirable returns.
time you want to provide
liquidity for.
1:1 value into the PoolStake
contract.
Uniswap and added to your
desired liquidity pool.
in the PoolStake contract based
on the selected term.
pool your LP tokens will
begin earning returns.
at any time along the term
or wait until the very end.
your liquidity and trading profits
or restake your LPs for another term.
For Projects
PoolStake makes attracting liquidity easier and more measurable for projects looking to build their pools. The ability to budget specifically for attracting a set amount of liquidity and being able to know ahead of time how much liquidity will be available creates a more attractive prospect for people looking to get involved with the project.
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