Listing to Jungle DEX was a major step in our development and having our community in mind we thought to release a product that rewards those that provide liquidity. That is how the concept of LP Framing came up where providers of liquidity for the pair USDC-CPA can also stake their LP and receive a consistent APR in return.
Advantages of providing liquidity and using LP Farm:
- As a liquidity provider, you receive rewards from Jungle DEX;
- Farming your LP brings you an extra APR for keeping that liquidity, offered by us;
- Winning from both, providing liquidity and farming that liquidity;
- Farming is there to provide a buffer in case of impermanent loss which occurs in most cases;
Impermanent loss basic explanation:
As a liquidity provider, you are subject to price fluctuations.
For example in our case, for the pair USDC-CPA:
- In case CPA price goes up and you are breaking the LP ~ you receive less CPA than you put in and more USDC.
- In case CPA price drops and you are breaking the LP ~ you receive more CPA than you put in and less USDC.
- In both cases impermanent loss becomes reality only when breaking the LP, otherwise, the loss doesn’t occur.
Disadvantages of providing liquidity and using LP Farm:
- It might involve impermanent loss if LP is broken at an unfavorable moment.
LP Farming explained :
- First thing first, you must provide liquidity for the pair USDC-CPA on Jungle DEX ;
- Second, visit our platform here and stake your LP;
- The LP will be locked for 60 days;
- Any top-up will reset the timer;
- APR is liquid depending on the amounts at stake;
- Maximum APR stops at 1000% when minimum liquidity is provided;
- Rewards are paid in CPA and can be withdrawn at any time;
- At the end of the 60 days period, you can keep or withdraw your LP but keep in mind withdrawing from the farm doesn’t automatically break your LP. For that, you need to visit Jungle DEX and remove liquidity by yourself. Please watch for impermanent loss.
- Rewards for providing liquidity are cashed in when removing the liquidity on Jungle DEX
This is not financial advice. ArtCPAclub is publishing this article solely to receive feedback and comments from the public. Nothing in this website should be treated or read as a guarantee or promise of how ArtCPAclub business, services or the token will develop or of the utility or value of the token.