In the previous article of this series, we have explained how you can swap TOMO tokens into TOMOE (ERC20 token) and then create a liquidity pool in Uniswap, pairing with Ethereum. We also covered receiving the Uniswap V2 LP token.
In this current article, we will continue to explore further how you can use this LP token in LuaSwap staking and receive rewards.
Stake UniSwap V2 LP token in LuaSwap and receive the LUA token
Staking the LP token in LuaSwap consists of few steps:
Visit the LuaSwap website and Connect wallet
First, connect your wallet containing the Uniswap V2 LP token with the LuaSwap website.
Go to the Luaswap site.
To connect your wallet, click on the Unlock Wallet option shown on the top corner of the LuaSwap homepage.
The platform will give you options to connect:
- Wallet Connect
Choose according to your requirement. We have chosen MetaMask.
Select correct liquidity pool.
LuaSwap currently supports the following liquidity pools for harvesting:
Each of these pools requires a different LP token for staking.
Since we have generated the LP tokens from the Uniswap TOMOE-ETH pool, we will select the last option, i.e., TOMOE-ETH.
You can easily see the total staked LP tokens, the amount of LUA being rewarded per block, and the yearly yield of all the supported pools.
Allowing LuaSwap to withdraw LP token
Before staking, you have to first allow LuaSwap to withdraw your UNI-V2 tokens.
Click on Approve TOMOE-USDT UNI-V2 LP in LuaSwap. You will be asked to confirm your action on MetaMask allowing LuaSwap to withdraw your UNI-V2 tokens.
Set stake amount
Once approved, you can now stake your tokens by selecting the Stake button.
Fill the amount of tokens you want to stake and click on Confirm.
Once this is completed, you will see that your LP tokens have been staked.
You can check the LUA rewards that we have received for the locked-in period.
How to unstake LP tokens from LuaSwap
You can harvest your LUA as well as unstake your LP tokens (partially or completely) at any time and retrieve your TOMOE and ETH/USDT/USDC from Uniswap.
To unstake, click on the highlighted button as shown in the above snapshot.
Enter the amount of UNI-V2 LP tokens you want to withdraw from LuaSwap.
Click on Confirm and approve that transaction on your MetaMask wallet. You can now see and withdraw these UNI-V2 LP tokens from Uniswap.
You can further go ahead and remove your liquidity pool contribution of TOMOE-ETH from Uniswap and can free your tokens along with rewards received from a 0.3% trading fee.
LUA token holders can participate in governance voting.
Go to the site. Connect your MetaMask wallet.
You can see the list of all active proposals to the community.
Click on New Proposal. A new window will appear and ask you to fill out the title and your community proposal, start date, and end date. Select the desired voting options.
To provide the snapshot block number, read the guide.
Then choose to Publish.
Vote on a proposal
LUA token holders have the right to vote on the proposal.
To vote, just click on the proposal you want to vote on.
You can then cast your vote, either for or against the proposal. You can also check the current voting status.
Sign the vote via MetaMask.
Important: A user’s voting power is based on the snapshot of unlocked LUA balance in his/her account at the snapshot block in the proposal’s information page.
DeFi yield farming is risky because the value of the fluctuating LUA tokens can lead to a high impermanent loss. Also, the high yield which is currently getting provided has limited validity. Seeing that the project is legitimate as it is created by the TomoChain team, it is also audited. We can hope that the LUA tokens will have much higher utility once it moves to TomoChain. Overall, Lua can become the Uniswap of TomoChain.