Provide Liquidity
Start earning yield with your assets

Provide Liquidity

Providing liquidity on Backd is simple and works similarly to other DeFi protocols. Any user who holds supported pool assets can deposit them into a single-asset pool in exchange for LP tokens. The steps to providing liquidity are further outlined by the following:
  1. 1.
    Connect wallet to Backd
  2. 2.
    Deposit assets into single-asset liquidity pool (ERC-20 tokens will require an approval tx)
  3. 3.
    Receive Backd LP tokens

Pool Yield

Assets deposited into liquidity pools are allocated to a vault where yield is aggregated in the underlying asset (e.g. DAI liquidity pool aggregates yield in DAI). Yield is generated from yield-farming strategies as well as protocol fees. The goal of each pool/vault is to grow the number of total pool assets.

Backd Rewards

In addition to yield generated by liquidity pools, users can also earn Backd governance token rewards. To do so, users must stake or register their Backd LP tokens. Staked or registered LP tokens are rewarded Backd governance tokens on a per-block basis. LP tokens along with their accrued Backd rewards can be withdrawn at anytime.

Withdraw liquidity

Users can withdraw their liquidity (deposited assets) at anytime in exchange for their LP tokens. LP tokens are the representation of a user's share of the total pool assets (e.g. if total pool assets grow by 2%, the user's share of the pool will be worth 2% more than at the time of deposit)
Last modified 1mo ago