Any user can add liquidity to the XinFin liquidity pool on Bancor and earn fees from XDCE trades.
When staking, users add liquidity to the XDCE pool with an equal value of XDCE and BNT and receive XDCEBNT Pool Tokens (ERC20) that generate income from trading fees.
It is not necessary to hold both XDCE and BNT to stake. Users have the option to add liquidity with just one of the tokens, ETH or any ERC20 via 1inch.exchange’s “earn” interface. This method automatically splits your token into BNT + XDCE in the pool.
As liquidity in the pool grows, it attracts more volume and generates fees which increase the price of XDCEBNT. You can always remove liquidity by selling your Pool Tokens back to the pool contract in order to realize gains.
This post covers how to:
- Trade XDCE on Bancor.Network
- Add Liquidity to the XDCE pool on 1inch.exchange
- Track your XDCE pool profits on ZumZoom
Trade XDCE on Bancor.Network
- Go to Bancor.Network
- Search for XDCE
- Convert ETH (or any token on Bancor) for XDCE
Add Liquidity to the XDCE pool on 1inch
- Go to https://1inch.exchange/#/earn and search for XDCE
- Add liquidity to the XDCE pool
Staking Option 1 — With 2 assets (XDCE and BNT)
To stake with both XDCE and BNT, you’ll need to hold both in your wallet.
Click the + symbol to add liquidity.
1inch will connect to your wallet and automatically calculate how much BNT and XDCE needs to be added to the pool depending on the amount of Pool tokens you set for minting.
Unlock BNT and XDCE, approve the transactions and then click “Provide liquidity”.
You are now holding XDCEBNT and will accrue fees from XDCE trades on Bancor.
Staking Option 2—With a single asset (ETH or any ERC20 token)
You do not need to hold XDCE or BNT to add liquidity to the XDCE pool.
You can stake using ETH or any ERC20 by selecting the “Use one asset” option in the “Provide liquidity” widget.
If you select this option, 1inch will automatically add both XDCE and BNT to the pool in equal amounts, no matter which asset you choose to stake.
Once you have selected which assets to stake, click “Provide liquidity” to receive your XDCEBNT pool tokens that will accrue fees from XDCE trades on Bancor.
3. Track the XDCE pool on ZumZoom
ZumZoom allows you to track the profits of the XDCE liquidity pool over time.
In order to understand ZumZoom metrics, it is important to first understand that most Bancor Pool Tokens are effectively a 50/50 hold of two tokens held in the pool’s reserves plus trading fees.
As such, two key metrics are:
- Hodl 50/50: % profit of holding XDCEBNT vs. holding its underlying assets, BNT and XDCE, 50/50 on their own.
- Hodl Token: % profit of holding XDCEBNT vs. holding XDCE on its own.
Below is ZumZoom’s Hodl 50/50 graph for the XDCE Pool Token (XDCEBNT):
Pool Token metrics on ZumZoom: https://zumzoom.github.io/analytics/bancor/roi/
In the graph above, “impermanent loss” refers to losses that arise from volatility in the trading pair. The 50/50 Hodl metric takes these losses into account, and so long as accumulated trading fees are greater than any impermanent loss, the Pool Token holder profits.
With ZumZoom, you can also see a breakdown of users staking liquidity in the XDCE pool:
A breakdown of users providing liquidity to the XDCE pool on Bancor.
As of this writing, there are only a few users staking in the XDCE pool, so what are you waiting for?