In the past few weeks, the StakeWise community has rallied behind the idea of deploying a Uniswap V3 pool for SWISE/sETH2 token pair and quickly developed it from a concept into a proposal. Following a successful DAO vote to allocate 500,000 $SWISE of incentives towards this farm, the core contributor team is excited to announce that the SWISE/sETH2 pair (0.3% trading fee) is now live on Uniswap V3 and the farming program has now started!
Link to the SWISE/sETH2 (0.3% trading fee) pool is here: https://info.uniswap.org/#/pools/0x992f534fcc87864875224d142d6bf054b1882160
Note that only the Full Range positions will be eligible for farming SWISE. It means that this pool is likely to function like a Uniswap V2 pool, where liquidity is provided across the full range of prices.
To learn about how to provide liquidity in this pool, read below!
Benefits of the SWISE/sETH2 pool to StakeWise and LPs
The new pool is expected to bring deeper liquidity for the SWISE token and will become its key trading venue going forward. LPs in the pool will continue earning staking rewards from their position’s sETH2 balance, and will earn SWISE farming rewards and trading fees on the total position.
Despite being paired with sETH2, the SWISE token can actually be bought and sold for ETH, USDC, DAI and any other token trading on Uniswap thanks to its routing mechanism. If routed, the trades will always pass through the sETH2/ETH pool, which will help its LPs earn more trading fees.
If the DAO successfully votes on the distribution of protocol fees to SWISE holders (as per this proposal), LPs in the SWISE/sETH2 pool will also earn protocol fees on their SWISE balance and will not need to do anything extra to opt-in.
Finally, we recommend LPs in the SWISE/1INCH pool on the 1inch Exchange to withdraw their liquidity and transfer it to the Uniswap pool to avoid the potential IL risk.
How to add liquidity in the SWISE/sETH2 pool and farm SWISE
To start farming SWISE in the SWISE/sETH2 pool, simply head to the pool’s page and add liquidity choosing Full Range as your Price Range and 0.3% fee tier. Follow the steps below for exact instructions:
- Head to the SWISE/sETH2 (0.3% trading fee) pool page on Uniswap: https://info.uniswap.org/#/pools/0x992f534fcc87864875224d142d6bf054b1882160
- Navigate to the “Add Liquidity” interface via a button on the pool’s page (illustrated below), or using this direct link.
3. Choose Full Range when prompted to set the Price Range on the right-hand side of the interface. The location of the Full Range button is illustrated below.
Note that only the Full Range positions will be eligible for the liquidity mining program. Concentrating liquidity in any other range other than Full Range is likely to increase your trading fee income, but will not earn you any SWISE from the farming program.
LPing with a Full Range means that liquidity will be offered at the full range of possible prices. This reduces the amount of impermanent loss that LPs can experience in Uniswap V3 pools to a minimum.
Side note: if the Uniswap UI is not allowing you to choose the Full Range, please manually choose SWISE and sETH2 in the top-left corner of the interface (even if they are already chosen). This will fix the problem.
4. Choose the amount of SWISE liquidity you want to provide by entering it into SWISE section on the left-hand side of the interface. The required amount of sETH2 will be calculated automatically and will reflect the prevailing price of SWISE in the pool in sETH2 terms. This is illustrated below.
5. Approve your SWISE and sETH2 tokens for spending when prompted by Uniswap. Depending on whether you have previously interacted with SWISE and sETH2 on Uniswap, this will require up to 2 transactions.
6. Confirm the addition of liquidity by pressing Preview and then Add. Illustrated below.
And that’s it — you’re a Liquidity Providooooor now!
On behalf of the StakeWise core contributors, we hope you enjoy the profits from liquidity provision and find it smooth sailing!