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How to Do Yield Farming With TakoSwap

TakoSwap is an Ethereum-based automated market making (AMM) decentralized exchange (DEX) by Multiplier Finance. It is a fork of SushiSwap and Uniswap with some additional improvements in AMM design structure in terms of price curves and contributor rewards.

TakoSwap will be fully operated and governed by the community members. The Tako tokens will be completely distributed to the Tako community, with no team allocation, no pre-mining, and no initial public sale. TakoSwap is fully audited by Bramah Systems.

TakoSwap offers the following facilities to the users:

  • TakoSwap Exchange
  • TakoSwap Liquidity Pools
  • TakoSwap Farm

In this article, we will explain how you can use the TakoSwap exchange and provide liquidity in any of the available pools. As well as being able to stake your liquidity pool token and farm Tako tokens as rewards.

Usage Guide

Go to the TakoSwap page.

Connect Wallet

To access the application, users are required to connect with their desired wallet.

MetaMask wallet is connected.

Menu

From the Menu tab, you can see the various pools currently available where you can provide liquidity and earn Tako. The approximate yearly yield is also mentioned that a user will receive for maintaining liquidity in the given pool.

Select your desired menu, i.e., token pair whose liquidity you want to provide. We have selected MakiRoll (deposit MXX-ETH TLP tokens and earn Tako).

Click on the Select button appearing below the desired pool. You will be redirected to the Exchange tab.

Exchange

Using the TakoSwap exchange, users can exchange one ERC-20 token into other ERC-20 tokens through the automated liquidity pools. The liquidity in the exchange is maintained by the liquidity provider who provides their tokens into the pool, and in return, they receive 0.3% of the trade fee along with TakoSwap Liquidity Pool (“TLP”) tokens. Users can later stake these TLP tokens in the Farm and receive yield rewards.

Once you are in the Exchange tab, connect your wallet first. The application will give you various options by which you can connect your wallet:

Connect with your desired wallet type.

If you are already holding MXX tokens, then you can skip this part and directly go to the provide liquidity step.

If you are not holding MXX, then we will first get the MXX tokens from the Exchange tab.

As you can see from the below snapshot, we are swapping some ETH with MXX tokens. Enter the amount of tokens that you wish to buy and confirm the Swap activity.

It will trigger a MetaMask transaction, and once the transaction is successful, you can see the MXX tokens in your MetaMask wallet.

MXX Token in MetaMask Wallet

If you are using the MXX tokens for the first time, you won’t be able to see the token in your MetaMask wallet directly. You have to add the token by giving the contract address of the token in the Custom Token tab.

See the below screenshot and add the token address. You can now see the MXX token in your wallet.

Pool

We now have the MXX token in our wallet. You can use this MXX token and add an equal amount of Ethereum into the MXX-ETH Liquidity Pool on TakoSwap.

The liquidity pool gets 0.3% of every MXX/ETH transaction on TakoSwap. These fees are divided among the liquidity providers.

Users are required to add liquidity into the TakoSwap pool with the MXX -ETH pair.

To add liquidity, go to the TakoSwap Pool.

Enter the amount of MXX token you wish to add to the liquidity pool, and an equivalent amount of ETH will automatically get entered.

Since you are using this liquidity pair for the first time, users need to approve the pair first before adding liquidity.

Once approved, you can now supply the liquidity by clicking on the Supply button.

The application will display the number of pool tokens that you will receive. Confirm the Supply.

A MetaMask transaction is triggered. Confirm the transaction.

You can see your MXX-ETH liquidity details now.

MXX-ETH TLP Token in MetaMask

The MXX-ETH liquidity pool token will be reflected in your MetaMask wallet.

Stake

TakoSwap Farm allows the users to stake their TakoSwap Liquidity Pool (TLP) tokens that they have received by providing liquidity into the TakoSwap Pool. In return, the user will receive Tako rewards with each new block. The Emission Rate is 2000 TAKO per block that is divided proportionally to the share of the pool.

Once you have the MXX-ETH TLP token in your MetaMask wallet, select the dish from the Menu tab. Click on Approve MXX-ETH TLP and confirm the MetaMask transaction.

Once approved, you can now see the plus (+) icon (highlighted below). Click on it to deposit your MXX-ETH TLP tokens.

Enter the amount of TLP tokens that you wish to deposit and confirm the process.

You can see your staked token balance in the TakoSwap dashboard. Users immediately start earning rewards as soon as they staked their TLP token.

Unstake

At any time, users can unstake their TLP tokens. Whenever you stake and unstake LP tokens, the contract automatically harvests the TAKO rewards that you have earned till that time.

To unstake, click on the Unstake button and enter the amount of MXX-ETH TLP tokens that you want to withdraw.

Confirm the process. The TLP tokens will be reverted in your MetaMask wallet.

Remove Liquidity

After unstaking, the TLP tokens are freed from the TakoSwap staking contract and reverted to the user’s wallet. If you again want to free your tokens, you have to remove liquidity from the pool.

To remove liquidity, go to the pool again.

Expand your liquidity details and click on the Remove button.

The application will ask you the percentage of liquidity that you wish to remove. And similar to adding liquidity, it will ask you to first approve the removal liquidity process before actually removing it.

Next, the application will show you the amount of MXX and ETH tokens that you will receive after removing liquidity.

Confirm the transaction process. Once the transaction is successful, you can see the individual MXX and ETH tokens in your wallet.

 Conclusion

With TakoSwap, Multiplier Finance aims to attract crypto users towards its AMM platform. Like Uniswap, users can swap ERC-20 tokens, provide liquidity, and earn 0.3% of the trading fee along with the extra advantage of high-yield farming. However, as with other Ethereum-based applications, TakoSwap is also painful to its users in terms of high gas costs.

 

Resources: Tako Medium Blog

Read More: Trodl – Your Home to All Crypto Information

 

The post How to Do Yield Farming With TakoSwap appeared first on Altcoin Buzz.

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