[Seraph S3 Season Gold Mining Strategy 3: Gold Mining in the Liquidity Pool of SERAPH/USDT Token Trading Pair - Liquidity Mining]
In the third part of Seraph's gold mining strategy, I originally intended to write about how to mine gold in the mercenary dungeon within the game, but unfortunately, since yesterday, my income from gold mining in the SERAPH/USDT token trading pair liquidity pool has been too high, so I wrote this first.
💥Let me show you a screenshot; I started adding liquidity to the SERAPH/USDT token trading pair in the liquidity pool for 4 times, totaling about 18,000 USDT worth of SERAPH and USDT tokens on June 12 at 11 AM, and the income from gold mining after staking in the Actpass wallet.
Figure 1: My 36-hour staking income
💥Introduction to Gold Mining Income:
📍From 11 AM to 4 PM on June 12, I added liquidity and staked a total of 67,000 SERAPH tokens and 6,400 USDT across 4 transactions.
📍As of 11 PM on June 13, the total gold mining income over 36 hours is 4,258.38 SERAPH tokens, valued at 742 USDT at the current token price of 1.799.
Figure 2 is a screenshot of the records of adding liquidity to the SERAPH/USDT token trading pair on Pancake exchange.
Figure 3 shows the screenshot of my staking for one month of 67,000 SERAPH tokens and 6,400 USDT added to the SERAPH/USDT token trading pair in the Actpass wallet.
On Seraph's official website, there is an article that details how to operate and earn 500,000 SERAPH tokens in rewards by adding liquidity and staking the SERAPH/USDT token trading pair for one month. By following these steps, you can start your liquidity mining and gold mining.
seraph.game/#/news/1114
💥Here is a supplementary explanation of this gold mining method for everyone's reference:
🔥By adding liquidity to the SERAPH/USDT token trading pair for gold mining, users do not need to enter the Seraph game; they only need to operate on-chain outside the game.
🔥Adding liquidity to the token trading pair, commonly known as adding liquidity pools/liquidity mining, is a very common way to make money in Web3 through liquidity mining. For the principles of making money through liquidity mining, please refer to the popular science article in the pinned comment.
🔥I added liquidity of (67,000 SERAPH tokens + 6,400 USDT) to the SERAPH/USDT token trading pair on Pancake decentralized exchange; liquidity is abbreviated as LP (Liquidity Provider).
🔥Users adding liquidity to token trading pairs on-chain may face impermanent loss. For more information on impermanent loss, please refer to the popular science article in the pinned comment.
🔥If I only provide liquidity (LP) with these 67,000 SERAPH tokens + 6,400 USDT in Pancake without staking these two tokens in Actpass, the yield from liquidity mining would be much lower. The yield is lower because in Pancake, I can withdraw liquidity and redeem my two tokens at any time.
🔥Staking these two tokens in the Actpass wallet for one month is required to obtain relatively high returns. This is because the Seraph project team just established the liquidity pool for SERAPH tokens on-chain on June 9, allowing users to buy and sell freely on-chain; before this, users could only trade SERAPH tokens on centralized exchanges such as Bybit/Hashkey Global/Kucoin.
The Seraph project team offers a liquidity mining reward of 500,000 SERAPH tokens for one month to encourage users to participate and provide liquidity for SERAPH tokens.
🔥It should be noted that if users have staked their LP of two tokens in Actpass wallet, they cannot redeem them at any time and must wait until the staking period ends on July 9, when they may face the risk of SERAPH token price drops.
Of course, if the price of SERAPH tokens rises by then, users doing liquidity mining will earn higher gold mining income.
🔥The larger the liquidity pool for the token trading pair, the better the liquidity, preventing significant price fluctuations due to users buying and selling small amounts of tokens. Additionally, the slippage when users buy and sell tokens on-chain is lower, resulting in less erosion.
🔥Another risk users need to be aware of is that many project teams will sell the tokens they hold when their token's liquidity is at its best to cash out (project team or investor token unlock dumping). Therefore, retail investors who have previously added liquidity and staked tokens are used to seeing token prices drop when the staking period ends (there are also a few that rise at the end of the staking period, such as BNX).
🔥The daily income from adding liquidity and staking the SERAPH/USDT token trading pair will gradually decrease.
The reason is that as more other users come in to provide liquidity, the liquidity mining reward of 500,000 SERAPH tokens will be diluted and reduced in the amount distributed to each user daily according to the staking ratio.
So if everyone decides to mine gold in this module of Seraph after evaluation, the sooner you add liquidity and stake tokens, the better.
[To be continued, next gold mining strategy 4 - Seraph Mercenary Dungeon Gold Mining]
