💰How to provide liquidity?
To receive AURO in Yield Farming applications it is necessary to provide liquidity first.
This is the central operating mechanism of a decentralized broker such as Viralata Swap and Pancake Swap. For this reason, this procedure enables the investor to participate in the farm. To learn more, read the article below:
Prerequisites
Own a cryptocurrency wallet (TrustWallet, Metamask, REAUPay...);
Own the two currencies/tokens you want to add liquidity;
Have a small amount of BNB to pay network fees (fees charged by the blockchain to process the transaction - BNB Smart Chain fees apply to any and all transfers);
Understand and accept the risks associated with any DeFi and cryptocurrency investments
Providing Liquidity
(1) Wallet on Binance Smart Chain (BSC) network and connected to Viralata Swap
Make sure your wallet is in Binance Smart Chain and is connected to Viralata Swap page. (These initial steps can be found in the article on trading in Viralata Swap).
(2) Pair and swap selection
Select the pair you want to add liquidity to. Remember that only a few pairs are eligible for rewards (check the "Rewards" menu for available pairs and earnings). To provide liquidity, it is necessary to have the same U$ value of the two assets. For example, assuming you have $10 to invest in the pair AURO/BUSD and 1 AURO = $0.10, you need to have:
(3) Providing Liquidity
Click on the "Liquidity" option in the Viralata Swap top menu and click on "Add".
Select the pair you want to apply. It is only necessary to fill one of the quantities. Swap will automatically fill in the other amount according to the current quote.
Similar to a sale, if this is the first time you are moving a currency/token, you will need to approve this type of transaction first. After signing this approval in your wallet, you must wait for this transaction to be processed in the blockchain before you can continue.
Just click on "Confirm supply of liquidity" and confirm the transaction. You will receive VLP-type tokens that represent your participation in this liquidity pool. From that moment on, you have a small % of this liquidity pool.
(4) Aplicar para rendimentos
Em posse dos tokens VLP, é possível aplicar para rendimentos do par adicionado.
(5) Undo liquidity
In possession of the VLP tokens, it will be possible to undo the addition of liquidity and receive in exchange the equivalent of your participation in the liquidity pool.
To undo the liquidity, just go back to the "Liquidity" section, find the pair you have liquidity in the "Your position" part and undo the pair. (Remember that you must first remove the VLP tokens from the "Farm").
Although the final value in U$ tends to be close to the added value, the distribution between the pairs can be different. In cases of extreme volatility, the final value may suffer from an impermanent loss. For this reason, pairs with high volatility tend to have higher yields.
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