(Guide) Liquidity Pools, Farming, Staking, Rewards…

by Jason Starr

Things have gone from exciting to confusing pretty fast if you are new to the environment.

From childhood we have been told, ” Save your money in the bank to earn more.” Nowadays it is a lie. Holding your Fiat in a bank account, against inflation, you  actually lose money”. In these new times we need new tools  to make our money work for ourselves.

In this article we will be going over everything you will need to understand. What, and how, but why these tools exist.

Let  start with the “Best Shit Coin” On Cardano, “Crow Tokens”. Also known as $Crow – (This will be the ticker, or nickname  to the Crow Tokens. The Ticker is the abbreviated name of the Token used to find it on Blockchains and trading platforms )

At the start Crow Tokens are worthless, as any Coin/Token/Project are, until you give it liquidity. The moment someone buys a token and adds fiat to an asset, it now has value.  But it wont  be as easy as throwing dollar bills at the screen. Every Crypto asset or Tokenized asset will need to be paired 1/1 of equal values to another asset to give it its value. For Crow Tokens to have value, we need to pair $Crow to $Ada. ( Being that Crow Tokens are on the Cardano Blockchain it only makes s  that we pair the Cardano Token $Ada.)

This is where a Liquidity Pool Comes into effect. A liquidity pool is a crowd funded

pool of crypto-currencies or (Ada in this case)  locked in a smart contract that is used to facilitate trades between the assets on a decentralized exchange (DEX). Instead of traditional markets of buyers and sellers, many decentralized finance (DeFi) platforms use automated market makers (AMMs), which allow digital assets to be traded in an automatic and permission-less manner through the use of liquidity pools. Without a Liquidity Pool we would not be able to use a (DEX) to trade our $Ada into $Crow.

Crow Tokens has partnered up with VyFi.io to be the first and main (DEX) to hold and trade $Crow. Jason Appleton, Aka Crypto Crow was generous enough to start a Liquidity Pool with 10,000 $Ada. And at the drop of a hat the Community was willing to add to the Liquidity Pool as well.

Now you may ask, “If Crypto Crow Added to the liquidity pool why should I?”

Well its simple. “Rewards!”

Farming Crypto, or yield farming, is a way of earning rewards by lending your Crypto to an exchange or a protocol that provides liquidity for trading. You can think of it as getting interest on your Crypto holdings, rather than just keeping them idle.  (Kinda like the way we were trained to think about regular banks in the 19 )  But the APR% is much higher.

Now there are two ways you can add  your $Crow to the liquidity pool to earn your rewards, or to start farming.  Second, you Can  add the $Crow and Pair it to $Ada. (If you had $1,000 worth of $Crow) You would add $1,000 worth of $ada and pair it to your $1,000 worth of $Crow. Which will end up costing you $2,000 in ada worth, But you will be farming with your whole amount of $Crow.

As you can see in the image. $1,000 worth of $Ada will need a pairing of 505,066,638 of $Crow to be equal or 1/1. So you will be using a total of $2,000

( Looks at though processing fees Super Cheap, another reason why i love Cardano!)

There is another option for those who are looking to only farm with just the $Crow they have. And not purchase or add more $Ada.

“ZAP”

Zap option on Vyfi.io is a cool tool that will help you skip the steps of moving assets around to pair and farm correctly.

If you have $1,000 in $Crow and only want to use that amount. By Clicking the “Zap” Option. It will automatically cut your $1,000 in half and pair it to the liquidity pool for you. Giving you $500 worth in Ada and $500 worth on $Crow in the liquidity pool to start farming your rewards.

As you can see in the image on the left  can Add your liquidity of $Crow directly in with using the Zap Option.

Or you can see in the Image on the Right.

You can Also just add your $Ada, using the “Zap”   directly split your $Ada and $Crow into the Ada/Crow Liquidity.

Now that our   are in the Liquidity Pool, It’s time to learn about the rewards.

Now you’re hoping that the rewards will be massive, but it’s not just $Crow you will be earning… Because we have used the Vyfi.io Liquidity Pool, we won’t just be earning $Crow but also get to start earning Farming interests on $Vyfi. Which is a token that is used for making transactions on the Vyfi.io website.

Now our money is working for us, we are now making money on our investments if the price goes up or down. Earning as much as we can with what we have. ( We are doing what banks do! Loan out our money to projects that can make you more money in interest form.) But this is not to say its 100% safe. There is risk.

“Crow Your Coins”

Get involved, DYOR, Reach out to community members. Crows stick together, that’s why we are a Murder of Crow.