I posted an article a couple days ago about swapping ETH for ONX on Uniswap. Once investors got their hands on ONX tokens, the next question they asked was “How to stake OnX tokens”. If you’re in similar situation, this post will guide you through the process.
Staking your coins is a great way to make a passive income in crypto. Liquidity farming is a new way of staking that gives more rewards than regular staking.
Lack of professionalism by Onx Finance Team
OnX team has removed rewards for UniSwap Liquidity providers within 2 months of the launch. We were told rewards would go on for an year. With current behavior and censorship of the OnX team, providing liquidity to this project is high risk. Providing liquidity should be a long term investment. Having to remove liquidity or move liquidity between exchanges expose you to impermanent loss and Ethereum gas fees.
In my opinion, they could have split rewards between 2 exchanges and kept their initial promise of 1 year of farming to UniSwap LP providers as well. But they want to lure new liquidity providers by tweeting out high APY on SushiSwap. In the meantime, old LP providers on UniSwap is given the middle finger. If you try to bring this up on their telegram, you’ll get muted. I’ve never seen a team this IMMATURE.
This is not the only problem with the OnX team. They get toxic very quickly when you bring up concerns about the project. Following video is a good example how bad they turn on you once you start questioning.
User brings up a good point about missing deadlines set by OnX team themselves. And they get muted for bringing it up.
I’ve sold OnX and removed my liquidity. I won’t get involved with them again and I advice you to find a better project to invest. I will write a new article covering more information about these issues. stay tuned.
How ETH/ONX Liquidity Farming Work
In short, you provide liquidity to Ethereum and ONX pool on Uniswap. In exchange you get ETH/ONX LP tokens. These tokens provide liquidity to ETH-ONX trading pair on Uniswap. A fee of 0.3% will be charged on each trade between ETH-ONX pair. This fee will be distributed among liquidity provides based on their share on the pool.
Once you have ETH/ONX LP tokens, you can stake them on OnX Finance to earn more OnX tokens. This is called liquidity farming or yield farming . Since OnX finance is still like one week old, you stand to make large rewards by farming. Just like Bitcoin when it first started. If anyone can recall, at inception, each bitcoin block reward was worth 50 BTC.
I started farming exactly 8 hours ago and this is how my reward look like now. Averaging more than one ONX per hour.
How to Provide Liquidity to ETH/ONX LP on Uniswap
Providing liquidity to ETH/ONX LP is the first step in ONX yield farming. You need to have some ETH and ONX in your wallet to start. I have posted instructions on my previous post on how to swap ETH tokens to ONX on Uniswap. The ratio of ETH and ONX need to be 1:1. So if you’re planning to invest 1 ETH into this project, you need to swap 0.5 ETH to ONX and keep other 0.5 ETH in your wallet.
Once you have that, you can provide liquidity to ETH/ONX pool. Go to Uniswap and click Launch App button. You will be taken to the Uniswap Interface. Click Pool link on top-left menu. You will see a screen similar to this.
Click Add Liquidity button and you’ll be offered to select two tokens on the next screen. Select ETH and ONX from the lists. Click MAX on ONX and Uniswap will calculate the ETH amount you need to provide. Make sure you have enough ETH left to cover the transaction fee and then click Supply button.
You will see a pop up similar to the image on right with more information about your transaction. It will display estimated amount of ETH/ONT LP tokens you stand to get. And also your share of the pool when you complete the transaction. These are important numbers which might be useful to you in the future when calculating profits or losses. So I suggest keeping a record of them. Taking a screenshot is the best way to do it.
Clicking Confirm Supply button will send the transaction to Ethereum blockchain for confirmation. It can take few minute depending on the network load. My transactions usually confirm under 30 seconds.
You will get your ETH/ONX LP tokens once the transaction is confirmed on Ethereum blockchain. Now you can go back to Uniswap pool section to view your added liquidity. You’ll start getting your share of transaction fees on ETH-ONX trades from here on. Fees are very little but they will accumulate over time if you provide liquidity for enough period of time.
How to Stake ETH/ONX LP Tokens on OnX Finance Platform
Finally, you’re ready to stake your ETH/ONX LP tokens and start yield farming. This is done on OnX Finance website. You will be making more OnX tokens by staking your LP tokens. APY rates are very generous at the moment of writing. But this is going to change as more and more people start yield farming.
Open OnX Finance official website and click Launch App from the top right menu. You will be taken to the Dapp where you can connect your Ethereum wallet with MetaMask. Connect to the Dapp and the click Start Farming button. You will see a screen similar to below image.
Type in the amount or select the percentage of ETH/ONX LP tokens you like to stake. There’s no time lock at the moment of writing. But you may need to verify that with the team in case they interduce something like that in the future. Now click Stake button to send your transaction to blockchain. Wait for the transaction to complete and then go to the dashboard to see your stake status and real-time rewards you’re acquiring.
That’s it for this tutorial. Happy farming!!
Wanna say thanks? Ethereum & ERC20 Tokens : 0xA3bB7c1a410b126B7f81e9A48793E0499eBc64d5 BitCoin : 1ARvGAwBShSHcW3BP9ZENtKnscjwESY9HL Neo & Ontology : AVRpdJTd2dKs1gcqt4PnbVMqaH31wVTpDm