Profitable farming within liquidity pools! CNUSD & CNBTC tokens utility explained
In the previous article, we have revealed some alpha information concerning the purpose of synthetic assets staking and their mechanics — receiving AGOy token allocation before holding the Initial Dex Offering event.
Take a look at here:
Since Argano has launched its own DEX, we are offering users to become liquidity providers to receive trading fees (0.25% for any swap) and additional rewards in the form of Argano share tokens, which each of them is responsible for separate token and acts as part of collateralization for synthetic AGOUSD (dollar) and AGOBTC (Bitcoin) pegged tokens.
As for now, while liquidity is still growing, TCR and ECR ratios, which are used for the minting and redeeming synthetic assets, are fixed at 100% — meaning that:
100% of AGOUSD value is backed by USDT
100% of AGOBTC value is backed by WBTC
In the next few days, we are planning to run an algorithmic mechanic of minting and redeeming new assets, and you won’t be able to use 100% USDT/BTC collateralization for this purpose
The further mechanics will act accordingly to the current market conditions and will change collateral ratios with the possible step of 0.25%, but not more than 6% per 24 hours. That means that every synthetic asset will be pegged with a part of the share token and mostly with the collateral asset. Please for additional details visit our documentation:
How to earn CNUSD and CNBTC share tokens
5 Easy steps on how to provide liquidity and earn interest:
- Visit the liquidity pools page at https://app.argano.io/liqudity-pools 👈
- Eligible pools for earning share tokens
1. AGOBTC/WBTC (stable pool without impermanent loss)
3. AGOUSD/USDT (stable pool without impermanent loss)
Currently, we have allocated 20,000,000 CNUSD and 2,000 CNBTC tokens for community rewards!
- Choose the pool you need and paste the number of tokens you want to provide at a 50%/50% ratio
- Approve tokens and click on the “provide” button on the right side
- Go to the “Stake LP” page under the chosen pool and stake your LP tokens
Congratulations, you became a liquidity provider and started earning community rewards!
What is the main usage?
As we have mentioned before, CNUSD and CNBTC share tokens will act as partial collateralization for the synthetic assets minting, so there are 2 ways to gain them:
1. Provide liquidity and earn them as a reward token.
2. Buy share tokens inside the trading pair.
One of the features of the Argano protocol is Foundry staking which incentives share token holders to stake and earn additional interest in the form of USDT/WBTC from minting and redeeming fees. Mint/redeem fee structure is described at:
Fees are set as follows:
- Minting — 0.3%
- Redeeming — 0.4% basic and 0.2% for $AGO token holders (decreased redeeming fee will be available after AGO token listing)