As a holder of Wrapped XEP tokens (WXEP), you can join a liquidity pool on PancakeSwap. You just have to back your WXEP with the same amount of corresponding asset and you are able to get rewards for providing liquidity which are flexible and typically range between 5% and 60% APR.
Provide Liquidity WXEP
There are three ways how Electra Protocol investors can earn with their holdings, independent of just selling tokens on an exchange. 1) You can use your XEP coins and stake them in return for up to 3% XEP APY. 2) You can provide WXEP tokens and join a liquidity pool on the BNB Chain for a dynamic return between 5% and 25% APY. 3). You will be able to run a XEP validator node when released.
What is Pancakeswap? BSC
PancakeSwap is a decentralized exchange running on the BNB Chain. Using PancakeSwap, users can purchase WXEP tokens (Wrapped XEP) and provide liquidity in order to earn rewards.
An Automated Market Maker
Electra Protocol decided to issue a Wrapped XEP token on the BNB Chain, so that users familiar with that blockchain can easily trade and earn. PancakeSwap allows users to trade such tokens and earn rewards for providing liquidity to the Wrapped XEP tokens they provide.
Wrapped XEP have the same value that XEP coins, but they are technically not compatible. If you want to use native XEP coins on PancakeSwap, you have to first convert XEP to WXEP and then transfer them to your WXEP wallet, such as MetaMask.
Liquidity is Important POOLS
A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions.
Liquidity Supports the Environment
Liquidity pools are the backbone of many decentralized exchanges like PancakeSwap. Users called liquidity providers (LP) add an equal value of two tokens in a pool to create a market. In exchange for providing their funds, they earn trading fees from the trades that happen in their pool, proportional to their share of the total liquidity.
Liquidity pools are a significant innovation that allows for on-chain trading without the need for an order book. As no direct counter-party is needed to execute trades, traders can get in and out of positions on token pairs that likely would be highly illiquid on order book exchanges.
How to Earn WXEP
Anyone who invests in XEP on the BNB Chain (WXEP tokens) can use these tokens in liquidity pools. In return for adding XEP in a PancakeSwap liquidity pool, rewards are paid out, which vary depending on market situations.
2 Steps To Passive Income
- Connect your Wallet and select XEP-USDT as token pair.
- Add XEP liquidity (WXEP tokens) and provide USDT accordingly.
The PancakeSwap transaction fee is 0.2%, with 0.17% of that going to liquidity providers. If you need more detailed instructions on how to add or remove liquidity and earn with it, please follow these detailed guidelines.
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