Boost yields on Uniswap: KROM/OP liquidity mining is live! | by Kromatika DAO | Coinmonks | Sep, 2023


Kromatika DAO

Welcome to a new frontier of profitability and financial efficiency in the DeFi space! If you’ve joined the Plasma Finance DeFi platform and are looking to tap into the Quadrat Protocol, you’re on the right path to unlocking impressive ROI from liquidity farming in Uniswap v3 pools with concentrated liquidity. This article serves as your go-to guide for achieving optimal yields, shedding light on the numerous opportunities Quadrat and Booster Protocol bring to the table for both liquidity providers and asset managers. So, let’s delve right in!

The Quadrat Protocol is a cutting-edge, decentralized platform developed for optimized liquidity management. Created by the innovators at 0xPlasma Labs, this protocol takes Uniswap v3’s infrastructure and kicks it up a notch, addressing the critical challenges that have plagued liquidity providers. Astonishingly, 95% of liquidity providers in Uniswap v3 fail to reap any rewards on their capital, and the remaining 5% often experience impermanent losses. Quadrat Protocol seeks to turn this situation around by offering specialized Web3 tools for effective liquidity hedging and rebalancing.

What sets Quadrat apart is its ingenious method of converting Uniswap v3’s non-fungible liquidity positions into fungible ERC-20 LP tokens. This groundbreaking feature not only simplifies the liquidity provision process but also enables the newly-minted LP tokens to be easily deployed in other DeFi protocols, be it for staking, lending, farming, or participation in DAOs.

Taking customization to the next level, Quadrat’s Permissionless Factory Contract allows Asset Managers to create Uniswap v3 non-custodial Vaults or Strategies across multiple blockchains where Uniswap v3 operates — think Ethereum, Optimism, Polygon, and Arbitrum. With this, Liquidity Providers can park their assets in Quadrat Vaults and start earning high fees passively from Uniswap v3. One key advantage here is the non-custodial nature of these Vaults; Asset Managers can tweak strategies and adjust pool price ranges, but they never have direct access to users’ funds.

But that’s not all. Quadrat Protocol doesn’t merely aim for static gains; it focuses on dynamic growth. The strategies within the protocol are designed to automatically reinvest the fees back into the Uniswap v3 Pool, thereby compounding the capital deployed. Asset Managers have the flexibility to design a plethora of strategies, all targeting the maximization of APY for the deployed liquidity.

In essence, Quadrat Protocol is a game-changer in the DeFi space, offering unmatched capital efficiency, high-fee passive income, and robust liquidity management tools. It safeguards your investment through its non-custodial architecture and opens the doors to various DeFi activities, thereby creating a win-win situation for both liquidity providers and asset managers alike.

If you’re eager to start earning impressive yields on your KROM and OP tokens, you’ve come to the right place. This walk-through guide will lead you through the process of providing liquidity to the Quadrat strategy and subsequently staking your assets in the Booster to maximize your returns. We’ll cover every step in detail, from opening the Plasma Finance DeFi app to initiating and confirming transactions. Whether you’re a DeFi veteran or a complete newbie, this guide aims to make the experience seamless and rewarding for you.

First things first. Open your web browser and navigate to Plasma Finance DeFi Dapp. This is where all the magic happens, so make sure to bookmark the page for easy access.

Click on the “Connect Wallet” button, usually located at the top-right corner of the screen. A dropdown will appear, offering you a selection of wallet providers such as Metamask, Wallet Connect, and more. Choose your preferred wallet and proceed to confirm the connection when prompted by your wallet interface.

Connecting Wallet (Metamask, Coinbase, Plasma Wallet, etc.)
Wallet Connect App

Note: After connecting, you’ll need to switch to the Optimism network. This is essential as our example, the OP/KROM pool, operates on this network. You should see an option for this in the header tab of the app. Confirm the network switch within your wallet to proceed.

Once your wallet is connected and you’re on the Optimism network, it’s time to get down to business. Locate and click on the Quadrat Strategy section in the Plasma Finance DeFi app. For the purpose of this guide, we are focusing on the OP/KROM pool with a 0.3% fee tier in Uniswap v3. Here is the direct link to this specific Quadrat Strategy: OP/KROM Quadrat Strategy.

Now that you’ve navigated to the correct strategy page and prepared your wallet, it’s time to provide liquidity to the OP/KROM token pool within the Quadrat Strategy. Let’s break down the steps.

On the Quadrat Strategy page for the KROM/OP pool, you’ll notice a right-hand panel with a tab labeled “Deposit.” Click on it to reveal two options for depositing tokens:

  1. Single Token Deposit: This option allows you to deposit any asset available in your wallet. The Quadrat Protocol will automatically convert your chosen asset into both KROM and OP tokens in a specific proportion, which will then be deposited into the current strategy pool.
  2. Two Token Deposit (Pair): If you opt for this, you’ll need to have both KROM and OP tokens in your wallet. If needed, you can swap other assets for these tokens using the Kromatika aggregator. Once you input the amount for one of the tokens, the second token will automatically be calculated and displayed.
Single Token Deposit
Pair of tokens deposit
  • For the Single Token Deposit, the asset will be auto-converted to both KROM and OP tokens before being deposited into the strategy.
  • For Two Token Deposit, you need to have both KROM and OP tokens in your wallet. The amount of the second token will be auto-calculated based on the first.

After choosing the amount and type of tokens you wish to deposit, you’ll be prompted to approve each token separately. This step is to grant the Quadrat Protocol permission to interact with the tokens in your wallet. Confirm this by signing the approval transactions within your wallet interface.

Once both tokens are approved, you can proceed to deposit them into the Quadrat Strategy. The tokens will be deducted from your wallet balances and delivered directly to the Uniswap v3 Pool managed by the Quadrat Protocol.

Upon the successful deposit, you’ll receive HyperLP tokens — ERC-20 tokens representing your liquidity position — in your wallet.
( Contract address for HyperLP tokens: https://optimistic.etherscan.io/token/0x1ce5b6cc76e49f2fad771c8c01607a9d987620e8 )

  • Trust: Quadrat Protocol acts as a proxy to Uniswap v3 Pools, ensuring your funds are directly delivered to the pool, where they will earn trading fees.
  • HyperLP Tokens: These tokens reside in your wallet, serving as a representation of your deposit. They are secure and directly linked to your invested capital.
  • Track Balances: To check your HyperLP token balance, you can either manually add it as a pool contract to your wallet or navigate to the Optimism Etherscan wallet page.
  • Transferable: You can transfer your position in Quadrat Strategy by sending the HyperLP token amount to another wallet.

And there you have it! You’ve successfully provided liquidity to the KROM/OP Quadrat Strategy, taking a significant step towards maximizing your yields. Up next, we’ll explore how to further amplify your earnings by staking these HyperLP tokens in the Booster.

You’ve successfully provided liquidity, and now it’s time to make those assets work even harder for you. By staking your HyperLP tokens in the Quadrat Booster, you stand to earn lucrative rewards. Let’s guide you through this process.

On the Strategy Page, you’ll see a tab labeled “Staking.” Click on it to get started.

You’ll be given the option to specify the number of HyperLP tokens you want to stake. Choose an amount that aligns with your investment strategy.

The Booster offers varying staking rewards based on your commitment level. By default, “no lockup” is selected, meaning you retain the flexibility to cease farming and withdraw your liquidity and rewards whenever you wish. However, if you decide to lock your assets for a specified duration, you can earn augmented rewards for your prolonged commitment.

Before signing any transactions, always review the specific details of the staking campaign. Keep an eye out for a minimal mandatory lockup period — this is established to safeguard against automated bots.

🔥 Special Bonus: The early bird gets the worm! If you’re among the first liquidity providers to participate in the staking within the initial three days of the campaign, your rewards get a substantial 2x boost.

Finally, authorize the HyperLP spending transaction within your wallet and subsequently sign the deposit transaction to finalize the staking.

  • Chain: Optimism
  • Uniswap v3 Pool: OP/KROM (0.3% fee tier)
  • Staking Duration: 1 Month (7 Sept — 7 Oct)
  • Optional Lockup Duration: 14 days (extra 10% rewards) or 29 days (extra 20% rewards)
  • Bonus for Early Participants: First 3 days, earn double the rewards
  • Minimum Mandatory Staking Duration: 1 day
  • Reward Pool: 10,000 OP tokens

The Booster doesn’t make you wait. The rewards are dynamically allocated with each block on the blockchain within the Booster contract. You have the flexibility to claim your accumulated rewards whenever you wish by simply hitting the “Claim” button. The distribution is linear, computed every block, and it’s based on factors like your chosen lockup period, any ongoing bonus period, and the volume of liquidity you’ve provided.

Once you’ve successfully locked your HyperLP tokens into the Staking Campaign, you’ve essentially set in motion an automated profit generator. With your tokens diligently working in the background, it’s a waiting game where rewards are guaranteed. Here’s a deeper dive into what you can expect during the post-staking period.

  1. Instant Access Rewards: As part of the staking contract, bonus tokens will steadily accumulate. The best part? There’s no fixed schedule for claiming — feel free to do it at your convenience.
  2. Passive Earnings from Trading Fees: Being a liquidity provider in the Quadrat Strategies means you’re in for a share of the trading volume fees from the Uniswap v3 Pool. This reward is seamlessly integrated, ensuring you reap benefits without any extra steps.
  3. Potential Asset Appreciation: The nature of the Uniswap pool means your position is represented by a pair of assets or tokens. This exposes you to the inherent dynamics of the market, where you could enjoy returns from token price appreciation, albeit tempered by the phenomenon known as impermanent loss.

It’s pivotal to remember that the Uniswap v3 Pool thrives on volume. A surge in trading activities directly boosts the rewards you accrue from trading fees via your position in Quadrat.

As the curtains fall on your staking and lockup period, here’s a straightforward checklist to ensure you leave no value on the table:

  1. Harvest Time: Claim any outstanding OP rewards you’ve earned during the staking campaign.
  2. Reclaim Your Tokens: Initiate the process to withdraw your HyperLP tokens from the staking contract.
  3. Strategizing for Future Profits: At this junction, you have a decision to make. You can either pull out your liquidity from the Quadrat Strategy or, if you’re playing the long game, let it stay. By keeping your liquidity in place, you continue to siphon rewards from the pool’s trading fees.
Withdraw HyperLP from Staking

In essence, staking within the Quadrat ecosystem offers a trifecta of rewards, seamlessly blending instant bonuses, passive income, and potential asset appreciation. As the post-staking phase beckons, it’s all about strategic decisions, ensuring every token works to its fullest potential.

Navigating the ever-evolving DeFi landscape can be a rewarding journey, especially when you’re armed with the right strategies and insights. To ensure you’re always in the loop and ahead of the curve, we invite you to connect with us on our official social media channels.

🔗 Kromatika: Dive into the vibrant world of Kromatika, where innovation meets artistry. Join our community, and let’s co-create the future together. [Website, Twitter, Discord, Telegram]

🔗 0xPlasma Labs: At the heart of breakthroughs and pioneering solutions, 0xPlasma Labs is the beacon for DeFi enthusiasts. Connect with us and be a part of our journey to redefine the financial landscape. [Website, Twitter, Discord, Telegram]

🔗 Quadrat Protocol: Aiming to unlock the potential of liquidity farming? Quadrat is your trusted partner. Stay updated with our latest strategies, insights, and updates by following our channels. [Website, Twitter, Discord, Telegram]

In the vast ocean of DeFi, it’s collaborations, communities, and informed decisions that set the pace for success. We’re elated to have you onboard and wish you profitable strategies and fruitful farming campaigns. Here’s to a brighter, decentralized financial future! 🚀🌟

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