Welcome to yet another iteration of the Wavelength Explained educational series. Today, you will learn how to swap tokens, stake LPs and farm $WAVE on the Wavelength protocol.
As DeFi veterans would surely agree, swapping and providing liquidity are the two most basic features of DeFi. Therefore, If you are new to DeFi, this article is very important, so read carefully. Let’s now proceed and dive in to it.
How to Swap:
To provide you with a clear explanation, this section will be defined by a step by step guide. Also, each step will be accompanied by a screenshot of a test swap on Wavelength to ensure that you are capable to replicate the process.
Step 1: Go to the “Swap” tab on the website.
Step 2: Before using the protocol, make sure to read our Terms of Service, Risk Disclosure and Privacy Notice. After reading them, proceed to hit the “Accepted” button and confirm your knowledge of those documents.
Step 3: Click on the “Connect Wallet” button and connect your wallet to Wavelength. If you are using a Metamask wallet, a window should pop up automatically.
Step 4: Use the list of assets provided by Wavelength or import the token address by pasting the token address on the search bar to select the pair you wish to trade. Remember, the token on top will be traded for the one on the bottom. Note that when performing or considering a swap on Wavelength, traders can examine the price chart displayed on the right-hand side of their screen. Moreover, by clicking the button on the top right corner, you can turn the pre-defined line chart into a candle chart.
Step 5: Input the amount you wish to trade. To avoid mistakes, make sure to check the value is correct.
Step 6: Click on the “Preview Trade” button. Following the user will be moved to another window, where they will press “Confirm Trade” button and finalise the swap. Always give the trade a final check before swapping.
Step 7: In case you have never used Wavelength to swap one of the two tokens, click “Approve [token]”. Then, in order to “approve” the token, a transaction must be signed. Go over to you wallet and sign that transaction, it should be cheap and quick. If you’re using Metamask, a window will pop up the moment the “Approve [token]” is clicked.
Step 8: If everything is as it should, click on the “Confirm trade” button. This will open a Metamask window automatically if that is the wallet you are using. Also, make sure there is enough $VLX in the wallet to pay the transaction fee. Then sign the transaction in your wallet’s interface.
Step 9: Wait for your transaction to confirm.
Step 10: And that is it! You successfully performed a swap and you are ready to do it again!
How to Provide Liquidity to Wavelength’s pools
Now that you know how to trade on Wavelength, the next step is to provide liquidity (with those sweet profits from trading, hopefully). Whether you are considering becoming a Liquidity Provider for a Stable Pool, Weighted Pool or just a traditional 50/50 pool, the experience and process are pretty much the same, except for some tiny nuances. Either way, closely follow the steps below to learn how to do it.
Step 1: Go to the “Pools” tab on Wavelength.
Step 2: Choose which Liquidity Pool you wish to provide liquidity to. Remember, “Incentivized Pools” should offer higher rewards because LPs receive $WAVE emissions on top of the trading fees. Also, the expected return is dependent on the following factors:
- Pool trading volume
- LP’s share of the pools liquidity,
- $WAVE emissions directed at the pool.
Step 3: Click on the Pool you wish to participate in. In this example, the Velonian weighted pool is chosen one. Note this pool is programmed to be made up of 50% $VLX and 50% $BUSD.
Step 4: Here you can see all the info relevant to the pool you are about to deposit into. Make sure to take a close look and do your due diligence on it.
Step 5: Now that you are ready to add liquidity, click on the “Deposit” button.
Step 6: Input the amount of each token you wish to add to the pool. Remember, Wavelength allows Liquidity Providers to deposit a single token, but be careful because this may imbalance the pool and cause you to lose assets depending on the level of liquidity in the pools and how much you intend to add. Luckily, Wavelength will always warn you and suggest that you add liquidity in the correct proportions.
Step 7: Click on “Preview”. Approve the tokens and if everything is as you desire, click “Deposit”.
Step 8: Sign (confirm) the transaction on your wallet and ensure you have enough $VLX to pay the gas fee. If you are using Metamask, the following window should pop up automatically.
Step 9: Now, all left to do is wait for your wallet to notify you that the transaction was successful.
Step 10: And that is it! You have successfully added liquidity to one of Wavelength’s Weighted Pools.
How do I stake my LP tokens to earn $WAVE rewards?
Great, you have successfully added liquidity to a Liquidity Pool and are now actively reaching part of the trading fees paid by those on the other side of the equation. However, there are just a couple more steps left for you to start earning $WAVE rewards on top of the fees. You can find the tutorial below.
Step 1: Step 1: Go back to the page dedicated to the pool in question.
Step 2: On the right-hand side of your screen, click on “Deposit WPT”.
Step 3: Input how many of your LP tokens you want to stake. Liquidity Providers commonly choose to click on “max” as it is the most efficient option and the one that will generate the most rewards. This may sound obvious and logical, but it is always worth going over the basics so everyone can follow along.
Step 4: Click on “Approve WPT” and sign the transaction on your wallet. Now that you have signed the previous transaction, click “Deposit WPT”. After that, sign the transaction on your wallet and once more ensure you have enough $VLX on your wallet to pay for gas. Again, those using Metamask will see the window in the image below open automatically.
Step 5: And that is it! You are now earning $WAVE tokens on top of the trading fees. Enjoy!
Hopefully this tutorial has helped everyone reading it, especially those new to DeFi.
In the next episode you will learn how to compose custom Liquidity Pools. As always, do not forget to regularly check all of Wavelength’s social channels, so you stay updated on all things Wavelength and Velas.
This article and any information contained in it are subject to Legal Notice. Please carefully review the Legal Notice as it contains important legal information, limitations, and restrictions relating to the information that we provide, third-party resources, and forward-looking statements.”