The MinSwap Decentralised Exchange is close to completion and in its final stages of launching on the Cardano Mainnet blockchain which will mean we will see live swaps capabilities and yield farming options soon.
All the content in this article has been referenced from the MinSwap Liquidity Bootstrapping Event article found on their Medium.
The MinSwap team are creating a Liquidity Bootstrapping Event (MinSwap LBE) with the aim to get ADA onto the DEX to allow for the trading of the asset. It will be paired initially with their DEX token MIN. For the MinSwap DEX to be successful long term, it needs this liquidity and ADA added to their exchange and for people to be using it.
The MinSwap team previously held a token distribution event via their Fair Initial Stake Pool Offering (FISO) to get the MINt & MIN tokens into the hands of as many people as possible.
This new LBE will load ADA onto their DEX and begin the price discovery phase of their ADA/MIN token pair. Min tokens will be provided from their Decentralised Autonomous Organisation's supply and after a period of 10 days, the price of ADA/MIN will be determined on the DEX for launch.
Continue reading to determine what needs to be done at each of these phases.
We have broken down what happens at each key date and what you can do at each stage.
Add ADA to the DEX and get purrADA tokens.
This is when we can add your ADA to the DEX. This will start setting the price of the Min token on the exchange. When you add ADA to the DEX, in return, you will get purrADA tokens which is a one to one representation of your ADA that you have added to the DEX. e.g 100 ADA = 100 purrADA
You can swap purrADA back for ADA at any time.
100M MIN tokens will be supplied from the MinSwap Decentralised Autonomous Organisation for the LBE.
Fee increase for swapping adding and withdrawing ADA.
This Fee is to stop whales from initiating last-minute price manipulation. Being hit with a 25% fee on a few million ADA is not nice. If you are wanting to participate in the price setting of MIN, it would be best to minimise the fees that you incur and do this before this date.
Redeem your purrADA tokens for ADA/MIN liquidity pool tokens. Anyone can add liquidity to any pool that is set up on the DEX.
This stage is where you get your real liquidity pool tokens and your representation of how much liquidity you own on the DEX in the ADA/MIN liquidity pool. If you didn't provide liquidity during the Discovery Phase, you will be able to provide liquidity at the price set at this point.
You can swap any asset, provide liquidity to any pool, create your own pools.
This is when we party and celebrate another DEX launching on Cardano. Watch for the DeFi Llama metrics and the amount of Total Locked Value rise at this point in time.
Stake your Min/ADA Liquidity Pool tokens to yield farm.
At this stage, you will be able to stake and lock in your liquidity pool tokens to the incentivised pools and earn extra MIN tokens for doing so. Locking the LP tokens into the pool ensures that the liquidity remains in the DEX. You earn extra tokens and there is a constant supply of tokens for the DEX to be able to operate. You get MIN tokens as a reward for supplying the liquidity as well as earning the fees that occur on the liquidity pool.
BONUS! If you provided liquidity during the Discovery phase, you will get to earn extra rewards from yield farming during the first week of the Settlement phase.
A question that is often asked is what is the point of the MIN tokens and why would you benefit from participating in a DEX.
MinSwap is one of the DEXes on Cardano that is completely community-driven and funded with no external venture capital or investment from large corporate entities.
Along with all the benefits, there are a lot of risks to keep in mind.
Please keep all of this in mind when participating in decentralised finance on any protocol, not just Cardano related DeFi.
At this point in time, MinSwap will not have an auto compound feature in the DEX.
100M MIN tokens will be provided by the MinSwap Decentralised Autonomous Organisation. The fees that the DAO will collect over time will allow for it to self-fund the project for years to come.
One month after the launch of the yield farming features you will be able to convert your MinT governance tokens to MIN tokens. Sometime around the 14th of April.
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Great summary! Thanks as always Pete.
np mate
Hi Pete. Learnt a lot from you. Great videos.
Regarding the Minswap LBE, how do I add my ADA to the DEX?
I've just uploaded the latest video that shows how that process is done: https://youtu.be/mwEnIYAB_SY