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Staking LP + claiming rewards tutorial

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Last updated 1 year ago

1- After providing liquidity, users should stake their LP to maximize their rewards and mitigate potential impermanent loss (IL). If liquidity has been provided but not yet staked, users will see a "Please Stake" button in the list of pools. To stake their liquidity, users should follow these steps:

  1. Locate the "Please Stake" button in the list of pools.

  2. Click on the "Please Stake" button to initiate the staking process.

2- Select the amount of LP tokens to stake, then click on "Stake LP." Once the LP is staked, the user will begin generating rewards in ceTokens, which can be claimed at any time.

3- To claim rewards, click on "Claim Reward," then on the "Claim" button. Afterwards, users can trade or provide liquidity again.

โ„น๏ธ To optimize ceToken rewards, users can utilize the ceTokens claimed from the farm along with some AVAX to provide additional liquidity. By staking this liquidity, users can receive more ceToken rewards. This beneficial cycle enhances market efficiency through increased liquidity while providing users with greater rewards and mitigating Impermanent Loss.

๐Ÿ“ˆ
Liquidity Pools section on Colony's Decentralized Exchange