How to Contribute Liquidity in the Phoenix Options and Leveraged Token Protocols

Phoenix Finance allows users to contribute stablecoins into the options pool to earn options premiums, or relating cryptoassets into the lending pool for leveraged tokens to earn interest. In order to incentivize the contribution, Phoenix Finance provides mining rewards for the liquidity contributors in cPHX.

Here is a short, hands-on guide on how to contribute liquidity in the Phoenix Options and Leveraged Token protocols.

Step 1

First of all, you have to navigate to the Phoenix homepage, go to the “DApp” button on the top right and click on “mining”. Or you may just to check on the app UI and navigate to the “Earn” section.

Step 2

Now choose the blockchain you would like to rely on to make transactions and connect your wallet.

At present, we support Metamask, WalletConnect, WanMask, WanWallet and ezDeFi. More will be added in the future.

Click on “Connect Wallet” on the top right of the screen to link your funds to Phoenix.

Step 3

You may find 3 types of pools on the right bottom of the screen, 'Options Pools', 'Lending Pools for Leveraged Tokens' and 'Liquidity on Dexes'. - Options Pools' are the pools powering decentralized options and earning option premiums and mining rewards. - 'Lending Pools for Leveraged Tokens' are the pools powering Leveraged Tokens and earning non-loss interest and mining rewards. - 'Liquidity on Dexes' are the liquidity pools on decentralized exchanges and earning transaction fees and mining rewards.

Step 4

Select a pool you want to contribute and press the 'stake' button at the end of the row. In this example, you choose the USDC/USDT options pool.

In the pop-up, you can see the details of your contribution. In this example, you may choose USDC or USDT to provide liquidity. Please input the amount you would like to contribute. Then press 'stake'.

Step 5

There will be an extra request to spend your cryptoassets in your wallet in the first contract interaction.

After the transactions are executed on chain, you can check them on the 'your staking' section. Congratulations, you have successfully provided liquidity in the Phoenix Finance's protocols, and the mining will automatically start.

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