The Swappery is the first cross-chain Decentralized Exchange (DEX) built for the Casper Network. On The Swappery, you can not only swap your tokens for other ones, but you can also yield farm to maximize your rewards! Our platform will allow thousands of Casper holders to make great use of their Casper tokens. The Swappery ensures to expand further and improve the Casper Network ecosystem to be one of the leading in the industry.
What is Yield Farming
Yield farming is a way of earning interest on your cryptocurrency, similar to how you would earn interest on money in your savings account. And similarly to depositing money in a bank, yield farming involves locking up your cryptocurrency, called “staking,” for a period of time in exchange for interest or other rewards, such as more cryptocurrency.
Since Yield Farming began in 2020, yield farmers have earned returns in the form of Annual Percentage Yield (APY) that can reach triple digits. The Swappery will be the first way to earn rewards using your CSPR tokens by providing Liquidity!
Earn more than Casper Live
At the time of writing, Casper Live, the biggest staking platform for the Casper token, has an APY of 10,78%. This is very low compared to the average Yield Farming returns. The returns on the Farmery will be way higher than this, making the Casper Liquidity pair earn you more than anywhere else!
When providing liquidity on The Swappery, you will be rewarded with LP tokens. You can stake these LP tokens through The Farmery to maximize your rewards!
Learn more about Liquidity Providing in this Medium article from The Swappery!
A first look
Take a look at the image below to get a first look at The Farmery — the Yield Farming platform from The Swappery!
As an example, if you deposit $SWPR and $CSPR into a Liquidity Pool, you will receive SWPR-CSPR LP tokens. The number of LP tokens you receive represents your portion of the SWPR-CSPR Liquidity Pool.
Providing Liquidity rewards you in the form of trading fees when people use your liquidity pool. Whenever someone trades on The Swappery, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on.
To use your LP token the right way, you should use The Farmery: It’s a great way to earn SWPR rewards. The Farmery requires you to stake the LP token to earn even more rewards.
Let’s say you are providing Liquidity for the SWPR/CSPR pool. Since you are providing Liquidity, you will automatically earn rewards calculated from the trading fees in the form of the SWPR-CSPR LP Token. Additionally, you will receive SWPR-CSPR LP Tokens depending on your liquidity size in the pool. If you stake the SWPR-CSPR LP Token, you will additionally start earning $SWPR tokens based on the given APR. It may sound intimidating, but it is not complicated. Let’s talk in numbers:
The SWPR/CSPR pool example
Let’s talk in numbers now (these numbers are for educational purposes only and are based on assumptions and a stable price):
Liquidity Pool: SWPR/CSPR
Liquidity providers: 1
Liquidity Pool worth in $USD: $10,000.00
Trading volume worth in $USD: $100,000.00
Earnings through swapping fees per day: $170 worth in SWPR-CSPR LP tokens
Assumption SWPR-CSPR farm APR (incl. LP rewards): 204.65%
Assumption Base APR (SWPR only): 177.48%
SWPR Tokens in $USD earned through the LP Tokens after 1 year: $17,748.40
To summarize these numbers: you would have invested money in the liquidity pair worth $10,000.00. Without calculating the trading fees, your investment would be worth $27,748.40 after one year!
IMPORTANT. The numbers displayed are assumptions for educational purposes only!
What is next?
The Swappery will launch on CasperPad, make sure to follow all the socials below to stay up-to-date with the latest!