As a holder of $NEKI, you can earn extra passive income by becoming a liquidity provider. Increase the returns that you earn on your tokens by providing liquidity today. You can withdraw your liquidity at any time.
When you stake tokens into a liquidity pool, PancakeSwap rewards you with a % share of the platform’s trading fees (currently 0.17% of the transaction) as well as liquidity pool (LP) tokens which can then be used to earn interest from the PancakeSwap platform.
See below for more details on liquidity pools and how to become a $NEKI liquidity provider. If you have any questions, please contact us at our telegram @Neki_Admin or join our group https://t.me/nekitoken
A. Who are liquidity providers and why do we need them?
PancakeSwap is a decentralized exchange (DEX) platform that facilitates the trading of BEP-20 tokens. It implements an automated market maker (AMM) model to provide liquidity on peer-to-peer trades within the protocol.
Through this model, PancakeSwap matches buy and sell orders from different platform users directly in a liquidity pool. The supply of tokens in this pool is provided by user deposits in a process called “staking.”
When they stake tokens, PancakeSwap rewards them in return with a proportional amount of their share in the platform’s trading fees as well as liquidity pool (LP) tokens. The LP token that stakers will receive as an incentive will be the same asset that they supplied to the liquidity pool.
B. How to become a liquidity provider?
Providing liquidity for BNB-NEKI is easy, fast and safe.
Step 1: Go to PancakeSwap
Step 2: Click “Connect” in the upper right-hand corner.
Step 3: Select “Metamask”, then click “Connect” to connect your wallet. (Here’s how to set up Metamask if you haven’t already.)
Step 4: Select “Liquidity” from the list, then click “Add Liquidity”.
Step 5: Choose “BNB” and “NEKI” as the currencies. To select “NEKI”, click “Select a currency”. Then, enter the address 0x374e51299e4cee5d4b0385cc2be9041c062e3232 and select “NEKI”. Click on enable NEKi if prompted.
Step 6: Enter the amount of $BNB you want to supply to the liquidity pool. The equivalent amount of $NEKI will be calculated automatically by PancakeSwap. Be sure to have sufficient $BNB and $NEKI.
Step 7: Click “Confirm Supply”
Step 8: Click “Confirm” as your wallet pops up.
Step 9: Be sure to wait for the transaction to confirm on the blockchain.
Step 10: Enjoy the passive income from being a LP
C. Is there any risk of being a LP?
Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.
So why do liquidity providers still provide liquidity if they’re exposed to potential losses? Well, an impermanent loss can still be counteracted by trading fees.
You can find out more at Binance Academy.
D. Can I withdraw whenever I like?
Liquidity can be withdrawn at any time.