[Seraph S3 Season Gold Mining Strategy III: Gold Mining in the Liquidity Pool of the SERAPH/USDT Token Trading Pair - Liquidity Mining]
This is the third article of Seraph's gold mining strategy. I originally planned to write about how to mine gold in the mercenary dungeon within the game. However, since yesterday, my income from gold mining in the liquidity pool of the SERAPH/USDT token trading pair has been too high, so I wrote about this first.
💥 Let me first show you a screenshot. Yesterday, June 12, at 11 AM, I added liquidity to the SERAPH/USDT token trading pair four times, totaling about 18,000 USD in SERAPH and USDT tokens, and the earnings from gold mining after staking in the Actpass wallet.
Image one: My staking earnings over 36 hours
💥 Basic situation of gold mining income: 36 hours 742 USD
📍 From 11 AM to 4 PM on June 12, I added and staked liquidity four times, adding a total of 67,000 SERAPH tokens and 6,400 USDT.
📍 As of 11 PM on June 13, the total gold mining income over 36 hours is 4,258.38 SERAPH tokens, worth 742 USD at the current price of 1.799 per token.
Image two is a screenshot of the records of adding liquidity to the SERAPH/USDT token trading pair at Pancake Exchange.
Image three 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, by adding liquidity and staking for a month to earn 500,000 SERAPH tokens as a reward for the SERAPH/USDT token trading pair. By following these steps step by step, you can start your liquidity mining and gold mining.
seraph.game/#/news/1114
💥 Below are supplementary explanations for this gold mining method for your reference:
🔥 By adding liquidity to the SERAPH/USDT token trading pair for gold mining, users do not need to enter the Seraph game, they just need to operate outside the game on the chain.
🔥 Adding liquidity to token trading pairs, commonly known as adding to the pool/liquidity mining. In Web3, earning money through liquidity mining is a common way to make profits in DeFi. For the principles of earning through liquidity mining, please refer to the educational article in the pinned comment.
🔥 I added liquidity (67,000 SERAPH tokens + 6,400 USDT) to the SERAPH/USDT token trading pair in the Pancake decentralized exchange. The abbreviation for liquidity is LP (Liquidity Provider).
🔥 Users providing liquidity for token trading pairs on the chain may face impermanent loss. For more information on impermanent loss, please refer to the educational article in the pinned comment.
🔥 If I only provided liquidity (LP) of these 67,000 SERAPH tokens + 6,400 USDT in Pancake without staking these two tokens in Actpass, the earnings from liquidity mining would be much lower. The earnings are 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 a month is required to obtain a relatively high return. This is because the Seraph project team just established the liquidity pool of SERAPH tokens on June 9 on the chain for users to trade freely; before that, users could only trade SERAPH tokens on centralized exchanges like Bybit/Hashkey Global/Kucoin.
The Seraph project team has offered a liquidity mining reward of 500,000 SERAPH tokens for a month to encourage users to participate and contribute liquidity for SERAPH tokens.
🔥 It should be pointed out that if users stake their two LP tokens in the 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 a decline in the price of SERAPH tokens.
Of course, if the price of SERAPH tokens rises by then, the user's gold mining income from liquidity mining will be higher.
🔥 The larger the liquidity pool of the token trading pair, the better the liquidity, so that the price won't fluctuate significantly due to users buying and selling small amounts of tokens, and the slippage when users buy and sell tokens on the chain will be lower, resulting in less impermanent loss.
🔥 Another risk that users need to be aware of is that many project teams will sell the tokens they hold when their token liquidity is at its best to cash out (the project team or investors’ token unlocks and sells). Therefore, retail investors who have previously added liquidity and staked tokens should be accustomed to seeing token prices drop when the staking period ends (although a few may rise when the staking period ends, such as BNX).
🔥 The daily income from adding liquidity and staking the SERAPH/USDT token trading pair will decrease over time.
The reason is that as more other users come in to provide liquidity, the liquidity mining rewards of 500,000 SERAPH tokens will be diluted and reduced daily based on the staking ratio distributed to each user.
So if everyone evaluates and decides to mine gold in this module of Seraph, it's better to add liquidity and stake tokens as early as possible.
[To be continued, the next gold mining strategy 4 - Seraph Mercenary Dungeon Gold Mining]
