On June 2, jager_BSC released an event announcement 'Providing JAGER-USD1 LP can earn an additional $100,000 incentive', this news unveiled the hidden corners of profiting from LP!

➤ Below is the official announcement information from Jager:

1) Providing JAGER-USD1 liquidity can earn $100,000 worth of BNB rewards;

2) Rewards are only for the liquidity in the '0.25% and 1% fee range of v3';

3) One of the weights of the rewards: the value of providing liquidity accounts for the proportion of the total liquidity value;

4) The second weight of the rewards: the active duration of providing liquidity, that is, the duration of the effective interval;

5) The third weight of the rewards: the price range of providing liquidity;

Official tweet: https://x.com/jager_BSC/status/1929538138462179687

After the news was announced, as a holder of $JAGER and a beneficiary of the airdrop, I took action immediately and quickly assembled the LP.

➤ Personal operations and experience:

Because I am used to setting a narrow range for Alpha tokens (within a 1% price fluctuation) while underestimating Jager's popularity, I formed the LP and not long after, the price broke out of the range. As a result, I adjusted several times until Jager's market cap stabilized at 22 million.

Although this LP brought some impermanent loss due to the token price increase, the overall return far exceeded the doubling return from simply holding the tokens.

Although my current strategy is relatively conservative, Jager's performance has indeed exceeded my expectations.

In dealing with Jager, I summarized a strategy with a higher win rate: whenever Jager updates or holds activities, the token price is usually at a relatively low level, followed by market marketing and spontaneous community dissemination, ultimately driving the token price up.

This is thanks to Jager's early low-threshold airdrop strategy, which benefited over 100,000 holding addresses and accumulated a large number of supporters.

As a result, everyone paid extra attention to Jager's dynamics, looking for opportunities and profiting from them.

For example, the earliest one who called me to participate was ZKSgu, and the god of farming KuiGas, both joined through this method.

Interestingly, while reviewing its white paper, I found that:

Its token name is the same as that of an early community manager at Binance, Jager, and Binance named the smallest unit of BNB as Jager to show respect to the community.

Interesting little knowledge +1!

So, Jager was positioned in the community from the very beginning and distributed airdrops to everyone?

Perhaps in the future it will also recover this foreshadowing.

➤ Choice of timing for Jager's activities:

In addition to marketing strategies, the Jager team's choice of timing for this activity is also very clever.

As we all know, after the first wave of rise in $B successfully drove the American strength represented by USD1, many projects on the BNB Chain are actively laying out USD1, the most direct way being to increase the trading pairs with USD1.

This undoubtedly borrowed the momentum of USD1, but it is also a mutual accomplishment with binancezh Alpha, BNBCHAINZH, and worldlibertyfi.

Just yesterday, the Alpha token's growth leaderboard went viral again, and behind this should also contain the energy of USD1.

Because the day before, WLFI announced it would empower DeFi on the BNB Chain with USD1, and Jager followed suit by quoting WLFI's tweet and launching a liquidity incentive activity.

Of course, if the incentive activities are only for the purpose of distributing benefits, then everything may return to calm after the activities end;

But if it can operate continuously around the core mechanism, the effect will be very different.

➤ Sorting out Jager's core logic:

1) The 0.25% and 1% fee ranges of v3 LP do not require payment of trading tax;

2) And Jager OG knows that v2 LP needs to pay trading tax;

3) In actual trading, v3's LP will capture all trading volume, and users do not need to pay trading tax when trading;

4) However, due to the AMM mechanism, v2's price will automatically track v3, this part will happen automatically, and the generated trading tax will still be used for token burning, holding dividends, and marketing;

5) That is to say, as long as the price fluctuations are large enough and frequent, v3 can drive v2, causing Jager's flywheel to spin faster;

6) At the same time, Jager is also backed by the grand narrative of USD1 and the support of Alpha;

Logically speaking, holding Jager is a good choice. However, by the time this article is published, I have already achieved a doubling return just by holding the tokens. Therefore, I recommend everyone to assemble the Jager-USD1 LP.

So, how effective is Jager's LP in practice?

➤ As shown in the picture!

1) Jager-USD1 1% fee v3 LP, with a price range of 10% APR reaching 768%;

2) Jager-USD1 0.25% fee v3 LP, with a price range of 10% APR being 220%;

Those who have formed LP for top trading volume tokens for Alpha know that to achieve a 700% APR, the interval usually needs to be adjusted to around 0.005%. And such a small interval, if not relying on automated tools for adjustment, it's almost impossible to capture the profits from LP.

Of course, Jager's LP earnings also benefit from the backing of USD1.

So, do you all understand?

On Jager, whether it is 'mining, withdrawing, holding', or 'mining, withdrawing, LP reinvesting', or even 'mining, withdrawing, selling', all are feasible!

Because holding tokens can earn dividends, reinvesting in LP is simple and has a good APR; even selling without faith yields considerable returns.

If you ask me how to recommend doing it, I would choose 'mining, withdrawing, holding', which is flexible enough and continuously generates income!

DeFi enthusiast: BitHappy