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Liquidity Providing

Optimism's Layer-2 NFT LiquidityProviding - Video Tutorial

"Where does the liquidity that allows us to open new Hedging Contract come from?"

From Liquidity Providers

To access the service, simply log on to the address:

Click on the "Liquidity Pool" in the top menu

How to use MetalSwap’s Liquidity Pools​

With the "Create New Position" button, is possible provided liquidity ( ETH, WBTC, USDT and OP )
Select the token desired and insert the amount of Liquidity to Provide.

Select the token desired and the amount of Liquidity to Provide

On the first tome Click on the "Allowance" button to grant permission to the smart contract to spend the XMT tokens.

Important to know​

MetaMask now requires you to set your spending cap, which is the number of tokens you're comfortable with the Smart Contract spending now or in the future.

  1. To avoid repeating this process, it is recommended to click on "USE DEFAULT" button. This ensures that you won't have to give an additional allowance when the previously entered number has been reached.
  2. Enter the desired value for your spending cap.
  3. Click on "NEXT" to proceed.
  4. Pay the transaction fee associated with the confirmation.


Please remember that there is a minimum liquidity requirement.

Enter the amount of liquidity you wish to provide and click on "Create Position."

Pay the commissions for this operation and wait until the transaction is confirmed.
Now is possible to see the Liquidity Providing NFT appear in the 'MY POSITIONS' section.

This NFTs is representing the liquidity locked in MetalSwap’s platform and will collect rewards over time.

NFT Staking

Thanks to the Cycle11 OP Grant winning, MetalSwap has a new juicy opportunity that arrives with Optimism's Layer-2 integration – the NFT Liquidity Providing OP Reward for staked position.
In this new development, when you choose to Stake your Liquidity Providing NFTs until the end of the staking period ( 23/12/2023 ), you become eligible to participate in the OP Grant token distribution.

Select your NFT to see the commands available:

  • Add Liquidity
  • Remove Liquidity
  • Redeem XMT Reward
  • Stake NFT to get OP grant tokens

Clicking on "STAKE NFT" button, we'll see the following card:

Every LP Staking Pool is available on the Layer-2 Optimism dApp with each of the Assets involved: ETH, WBTC, OP and USDC. The current APY percentage comes from a simple formula:
Number of $OP to distribute / Liquidity Provided overtime.
Please consider that the Grant distribution is now about the 40% of the total, that means those percentages are going to grow and give more rewards in the future!

Don't forget: if the NFT is unstacked before the end of the distribution date, you'll lose every $OP in Reward!

NFT TECH / COMPOSITION:​

MetalSwap’s NFTs are unique digital assets that are minted using a combination of pseudo-random data from various sources, such as the address of the user, the NFT's ID, the creation timestamp, the liquidity provided, the block height, and the difficulty. 

These NFTs are generated directly on-chain so no decisions are made by any centralised server! This happens because we save only the creation parameters for the user position, and the single parts of this NFT, are stored in a multiple system of Smart-Contracts. In that sense the image is recalculated each time it is requested with read methods so the gas limit for the NFT creation, is not increased with the heaviness of the graphic assets.

As an example, the three different NFTs shown here are FULL FOIL, meaning they have a starry background and represent liquidity in USDT and WBTC, as indicated by the chip on the left side and their class, shown on the upper-right, which never couples. It is important to keep in mind that the various rarities of NFTs do not affect the rewards.

Let’s dive in it to have a better understanding, keeping in mind that the various rarities do not affect the rewards.
The pseudo-randomness is shuffling under the deck the following info, choosing one in particular for one particular NFT.

The first, on upper-right is the Class, that can be:


Amethyst


Emerald


Gold


Diamond

Then there is the Border, that may be Bronze, Silver, Gold, or Diamond. The colours of the background are chosen between 10 different variables.
And the FOIL probability is always rising depending on liquidity provided.
With FOIL comes the probability of the starred background.
The only non-random thing (except the ID of the NFT that is progressive) is the Chip, that remains relative to the liquidity provided.
At the moment we have 4 different Chips, representing:


ETH


USDC


WBTC 


OP

By clicking on the NFTs, the following card will appear, with:

  • Redeem Reward button. You are allow to get your rewards after a minimum 24H from the deposit.
  • Add or Remove liquidity button. 
  • Transfer NFT: allows you to transfer the NFT‘s ownership to another public address directly from here.

Do not forget that the liquidity provided has a 14-days “Locking Period” before it can be withdrawn.

INFORMATIVE​

Please insert the amount of the liquidity that you wish to withdraw from your liquidity position.
Please note that penalties might apply if withdrawing your funds too early, before locking period has elapsed.

MetalSwap’s Liquidity Providing is LIVE NOW on ETH Mainnet - you can also try the demo on Goerli Testnet to play with it!