How to provide liquidity to SpookySwap on Fantom
In this guide we will explain how to provide liquidity to SpookySwap pools on the Fantom network to earn swap fees and yield farming rewards.
What is Fantom?
Fantom is a high-performance, scalable, and secure smart-contract platform. It is designed to overcome the limitations of previous generation blockchain platforms.
Fantom is permissionless, decentralized, and open-source. It uses a novel aBFT consensus mechanism called Lachesis which allows Fantom to be much faster and cheaper than older technologies, yet extremely secure.
What is SpookySwap?
SpookySwap is an automated market-making (AMM) decentralized exchange (DEX) for the Fantom Opera network. Spooky is different from other DEXs because they are invested in building a strong foundation with the BOO token as a governance token, diverse farms, grants to encourage a healthy ecology of other Fantom projects, and user-centered service.
What you will need to provide liquidity on SpookySwap on Fantom
- Metamask wallet
- FTM tokens in your Fantom wallet for gas
- Two tokens (in equal amounts) to provide as liquidity on SpookySwap
Setting up the Fantom network with your Metamask wallet
Much like with the Polygon network, you can use Metamask to interact with Fantom. There is a web wallet you can use to monitor your balances. It was created as a Progressive Web App (PWA) to make it easier to launch on all major platforms.
To configure your MetaMask to have the ability to access the Fantom network you need to click the icon in the top right corner and select “Settings”. Once there, find the tab labeled “Networks” and when you arrive there you should see a button to “Add Network” where you can input the settings below:
Here is the list of the parameters so you can easily copy them:
- Network Name: Fantom Opera
- New RPC URL: https://rpcapi.fantom.network
- Chain ID: 250
- Currency symbol: FTM
- Block explorer URL: https://ftmscan.com
This process adds the Fantom network to the list of available networks you can switch to from within Metamask. Sometimes it is helpful to switch networks when Metamask is acting strange or if you are having trouble getting things to show up.
Move funds from ETH or Polygon/Matic networks to the Fantom chain
Key takeaway: Moving stablecoins to Fantom is cheap and easy, moving FTM is a bit more difficult. You can get a small amount of FTM if you have none from an FTM faucet.
A website called Fantom Community Alerts has set up a faucet to distribute FTM tokens to new users of the platform so they have enough FTM to make their first trade. You can find it in the section of their page with the label “FTM Faucet”. This is helpful if you are only using the stablecoin bridge mentioned below and have no FTM in your wallet to make the first transaction.
To move funds from ETH mainnet to the Fantom network, you must first own some FTM tokens on Ethereum, you can purchase them on Uniswap or Sushiswap. You can then use a service called Multichain.xyz to swap the FTM to the Fantom chain by selecting FTM (ETH) and FTM (Fantom) in the interface and performing the swap. Be aware that this method has Minimum and maximum amounts for swap sizes and fees. The minimum fee is 80 FTM so be sure that you are swapping enough tokens to make it worth the 80 FTM.
Using a service called xPollinate (which is powered by Connext and 1Hive) you can easily move stablecoins like DAI, USDT and USDC from the Matic chain to the Fantom chain. They currently support moving stablecoin funds back and forth between xDAI, Polygon, Fantom and Binance Smart Chain. This service is dependent on the availability of exit liquidity for each of the chains, which they display below the main swap interface. At the time of writing, there was plenty of exit liquidity for most of the chains except Polygon/Matic.
Finding the right pool to provide liquidity on SpookySwap
You can add liquidity to any token pair trading on SpookySwap, but most users choose to provide liquidity to the pairs that currently offer farming rewards. You can browse these pairs on the “Farm” tab of the SpookySwap app to compare the various APR % offered via BOO token rewards.
Steps to add liquidity to SpookySwap
Step 1: Trade or swap tokens to get an equal amount (50/50) of each token for adding to the liquidity pool
Step 2: Go to the “Liquidity” tab on the left side and you will see two options, “+ Supply” and “My Potions”.
Step 3: Click the “+ Supply” button and select the two tokens you are using to provide liquidity, you will have to “Approve” the tokens the first time you add liquidity
Step 4: Click the “Supply” button once you have entered the token amounts you want to provide and you will have to sign a transaction to complete the action.
Stake your LP tokens to start earning rewards
Once you have the LP tokens from providing liquidity, you can then use them to stake and earn farming rewards.
Step 1: Click on the “Farm” tab on the left side of the SpookySwap app and select the farm you want to enter
Step 2: Click “Approve to Stake” on the pair you would like to use for farming
Step 3: Click the “ + Stake” button and a box will pop up to ask the amount of LP tokens you would like to stake, input the number or click the “Max” button to use all of the available lP tokens then click “Confirm”. Once the transaction is complete you can click “OK” to close the dialog box
Now you are farming BOO tokens with your LP tokens and have the option to “Harvest” to collect your BOO rewards in your wallet. You will also see (- Unstake) and (+ Stake) options to remove or add LP tokens from staking. You will need to use these buttons if you plan to pull your liquidity from the yield farming program.
How to withdraw liquidity and what to expect
When you are ready to pull your liquidity from the farm, you must first hit the (- Unstake) button and the dialog box below will pop up to unstake it. This action will harvest your BOO rewards at the same time it unstakes the LP token from the staking contract.
After you have unstaked your LP tokens, navigate over to the “Liquidity” section of the app and click the “My Potions” tab to view your liquidity position. Click the downward facing arrow to view the details and options for your position. Once you have that open you will see an option to remove liquidity ( – Withdraw) and it tells you how many of each token you should expect to receive when you exit the liquidity pool.
You will have to click “Approve” and sign a transaction, and then click “Withdraw” and sign another transaction. After completing that process, you will have exited from the liquidity pool and will have your tokens backs.
Track Your Position with APY.Vision
Use this link for Fantom portfolio tracking – https://fantom.apy.vision/#/
Providing liquidity is a great way to earn some income on tokens sitting in your wallet. You do have to be careful when providing liquidity, as sharp price increases or decreases can have a huge impact on the performance of your position. To read more about the risks, we highly recommend reading this post. We suggest using APY.Vision to keep a close eye on your positions to know when to remove liquidity during times of extreme price volatility.
APY.Vision does not give investment advice and always insists that you do your own research. Read our full Legal Disclaimer.
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