🚜Liquidity Provision (Farming)

Easy Liquidity Provision

Liquidity refers to the amount of a token pair available for users to trade against. Cryptocurrency market participants provide liquidity in exchange for rewards in the protocol's token. Liquidity supports growth in activity in crypto protocols. Supplying liquidity to pools is commonly known as "liquidity mining" or "liquidity farming".

Eclipse Fi users can seamlessly provide liquidity to the liquidity pools of various supported protocols (e.g. ECLIP-ATOM liquidity pool) with the Eclipse front-end UI. This UI operates on the Astroport DEX which controls the back-end operations for the liquidity pool. This allows users to manage positions and track accrued Cosmic Essence from farming. Users will be able to both farm tokens and monitor their expected and accumulated rewards from a single comprehensive UI.

Cryptocurrency market participants can actively engage with various protocols by contributing digital assets to supply liquidity for essential protocol functions, such as liquidity pools for swaps. In return, they can earn additional token rewards (e.g., $ECLIP), a process commonly referred to as "liquidity farming" or "mining."

Within Eclipse Fi's ecosystem, users can seamlessly participate in liquidity provision to supported protocols, like the ECLIP-SEI liquidity pool, using the Eclipse front-end UI. This user-friendly interface operates on the Astroport DEX, which manages the back-end operations of the liquidity pool. With this UI, users can efficiently manage their positions and track the Cosmic Essence they accumulate through farming activities. This comprehensive UI enables users to both farm tokens and monitor their expected and earned rewards from a single, integrated platform.

Users will be able to see their positions

Locking Liquidity Tokens

The logarithmic infinite weighted reward splits involve a process where users can boost liquidity depth for specific $ECLIP trading pairs on decentralised exchanges, and earn $ECLIP for providing such liquidity. This is achieved by staking or locking $ECLIP tokens and locking liquidity tokens. When contributing liquidity, participants must pool equal quantities of $ECLIP tokens and the corresponding paired token.

To calculate staked token amounts, user statuses, and user Cosmic Tier levels, the amount of underlying $ECLIP tokens associated with the liquidity token is counted twice. For example, if a participant pools 1000 $ECLIP tokens at a rate of 1 USDC per 1 ECLIP token, they will effectively add 1000 $ECLIP tokens and 1000 USDC tokens to the pool. Participants can then stake or lock these LP tokens in the corresponding staking or lockup vault, enhancing the overall liquidity of the trading pair.

Therefore, the current balance of staked $ECLIP tokens is reflected as twice the redeemable amount of $ECLIP tokens tied to the locked liquidity tokens, further incentivizing participation in the liquidity provision process.