AMM Liquidity Mining

Overview

There are two ways to do add Liquidity & mine DERI. One is to add liquidity to our in-house pools(Mining (AMM Liquidity Mining) or to add liquidity in existing, predefined spot DEX trading pairs (PancakeSwap & Sushiswap) to increase spot liquidity. In both cases, Liquidity Miner, earn DERI
This article deals with AMM Liquidity Mining by providing liquidity to in-house pools

Install Metamask or supported Mobile dApp

Desktop: We're supporting the Desktop version of the Metamask wallet for interaction with Deri Protocol.
Mobile: We're supporting various mobile dApps wallets & are also working on supporting more dApps.
  • Metamask
  • imToken
  • Math Wallet
  • Trust Wallet
  • Bitkeep Wallet
  • ONTO Wallet
  • TockenPocket
  • Coin98
  • Safepal

AMM Liquidity Mining

Add Liquidity

Step1: Visit the official website of the Deri protocol: https://deri.io
Step2: Click ‘Pools’ at upper left corner to enter the Pools section.
Step3: Click “Connect Wallet” at upper right corner to connect your wallet to Deri Protocol, and select “ AMM Liquidity Mining”
Step4: Once connected ,select any pool. Note that each pool supports a number of different base tokens & APY and may have a varying Network. This tutorial will be illustrated using the Futures Main-BSC pool as an example.
Step5: Click the”Stake” button to access the “ Future Main-BSC” pool.
Step6: Select the token (on the left column) you’d like to add as liquidity, let’s take the “BUSD” base token as an example.
Step7: Enter the BUSD amount you’d like to add as liquidity, at the “ADD” section on the right side, then hit the ”Approve” button .
Step8: Afterwards you will be forwarded to your wallet, where you need to grant permission for Deri Protocol to access the funds of the specific base token, stored at your wallet. Click "Confirm" to allow access.
Step 9: Once confirmed, you will be redirected back to the Deri Platform. When approved, you can transfer the funds by clicking the "Add Liquidity" button. To confirm the request, you will be forwarded a second time to your wallet, to confirm the transaction.
Step 10: After the transaction is validated on-chain, adding the liquidity has been completed. Details regarding the added liquidity can be viewed on the pool page info and your specified token (which you added as liquidity to the pools) will be marked with the "Staked" tag.
Congratulations! You can withdraw your liquidity at any time. You can claim the rewards on the overview of the pools section with a blue "CLAIM" button, about every 8 hours after an epoch is over.
What exactly happens to my liquidity when I am AMM liquidity mining? Your liquidity is added & stored on the specific smart contract of the respective trading pool, which acts as a counterparty to the traders position. It is subject to a certain market risk, for more information regarding potential risks and profits check out the How it works Mining (AMM Liquidity Mining) article or Mining Mining FAQ

Remove Liquidity

Step 1: You can withdraw your liquidity at any time by clicking the ”Remove” button. Select the percentage of liquidity you’d like to remove (e.g 100%), then click” Remove Liquidity”.
Step 2: Here you need to confirm the withdrawal by confirming the wallet request
Step 3: After the transaction is validated on-chain, your liquidity removal request has been successfully completed. Your pool balance information will be adjusted depending on how much liquidity you’ve removed & in case you removed everything, the tag “Staked” will be removed too.

Arbitrum

Different from the base tokens that can be staked in BNBChain pools (mentioned above), the base tokens that can be provided as liquidity in Arbitrum pool are blow:
  • USDC
  • ETH
  • WBTC
  • DAI
  • LINK

Select Arbitrum network

Step 1: Go to website : https://chainlist.org/, search “Arbitrum” in search bar, then click “ Connect Wallet”
Step 2: Click “Add to Metamask” (Here using an example of Metamask as the wallet)
You successfully add Arbitrum mainnet to your wallet
With the preparation of adding Arbitrum mainnet to your wallet, then you can officially start liquidity mining on Arbiturm net.

Add Liquidity

Step 1: Visit the official website of the Deri protocol: https://deri.io. Click ‘Pools’ at upper left corner to enter the Pools section.
Step 2: Click “Connect Wallet” at upper right corner to connect your wallet to Deri Protocol, and select “ AMM Liquidity Mining”. Then click the ”Stake” button to access the “Main — ARBITRUM” pool.
Step 3: Select the base token (on the left column) you’d like to add as liquidity, let’s take the “USDC” base token as an example. Note that the pool supports a number of different base tokens with different APYs.
Step 4: Enter the USDC amount you’d like to add as liquidity, at the “ADD” section on the right side, then click the ”Add Liquidity” button.
Step 5: Wallet will pop up for approval. Click “Confirm” to approve and stake USDC.
Step 6: Once the transaction is validated on-chain, you can see your liquidity information on the “pool info”. The base token you added as liquidity will be marked with the tick tag.
Step 7: To view the pools you have provided liquidity to,first select “Deri Official Pools” in the right column, then click the filter icon. Now you can see the pools for which you have provided liquidity.

Claim DERI tokens

Congratulations! You can withdraw your liquidity at any time. DERI rewards are calculated and distributed per block based on LPs’ liquidity percentage in each pool.
Click the DERI icon to claim DERI rewards on Arbitrum.
What exactly happens to my liquidity when I am AMM liquidity mining?
Your liquidity is added & stored on the specific smart contract of the respective trading pool, which acts as a counterparty to the traders position. It is subject to a certain market risk, for more information regarding potential risks and profits check out the How it works Mining (AMM Liquidity Mining)article or Mining FAQ

Remove Liquidity

Step 1: You can withdraw your liquidity at any time by clicking the ”Remove” button. Select the percentage of liquidity you’d like to remove (e.g 100%), then click” Remove Liquidity”.
Step 2: Here you need to confirm the withdrawal by confirming the wallet request. when the hint"Remove Liquidity Executed" occurs, your removal is done.
Step 3: After the transaction is validated on-chain, your liquidity removal request has been successfully completed. Your pool balance information will be adjusted depending on how much liquidity you’ve removed. In the case you removed everything, the tag “Staked” will be removed too.

Is the AMM Liquidity Mining on Deri pools risk-free?

No, it isn't. In general, it is essential to comprehend that liquidity providers are the counterparts of traders on Deri Protocol. When traders realize profits, they do so at the expense of liquidity provider's provided liquidity. When traders realize losses or are liquidated, liquidity providers realize profits at the expense of traders.
Since it is very rare that all traders' positions are covered by an equal number of long and short contracts, liquidity providers step in to cover the difference between long and short positions (net position) with their liquidity. Therefore Liquidity mining on Deri Pools is subject to market risk
However, please note that such market risk is different from the impermanent loss of spot exchanges (e.g. Uniswap or Sushiswap). First of all, the fact it is called "risk", instead of "loss", indicates that the LSV/mining PnL result could be negative but also positive (which depends on several factors such as funding & transaction fees, exceeding traders' profits & realizing them, etc.). Secondly, the probability of a negative result (a loss) on Deri liquidity mining pools is much smaller than that of typical spot exchanges due to the protection by arbitrageurs, although a certain market risk remains. You might think of liquidity mining on Deri as investing in a low-risk fund with potentially very high profit, whereas that risk-free liquidity mining is like depositing your money into a bank saving account.
Please refer to our whitepaper for further details regarding the protection by the arbitrage mechanism.