Hyphen 2.0: Liquidity Provider Guide

June 7, 2024
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Hyphen 2.0: Liquidity Provider Guide

Add liquidity now: Hyphen V2 Pools

During the managed liquidity period, we’ve opened our liquidity pools to users, so we can begin supplementing Biconomy provided pool liquidity with decentralized Liquidity Providers (LPs).

In addition, we’re also using this opportunity to release our new dynamic pricing model, in order to optimize the relationship between total liquidity and supplied liquidity, as well as the relationship between total pool volume and supplied liquidity (utilization rate).

There are two main components to the managed liquidity period each with their own unique benefits, that together create the foundation for Hyphen 2.0.

Dynamic Fees

Our new dynamic fee structure ensures liquidity pools are balanced without additional oversight, while supporting reduced fees for bridge users. This is accomplished by incentivizing transfers from source chains with higher liquidity to those with less, resulting in a fee determined by the available liquidity in both the source and destination chain.

Liquidity Providers

In addition to earning fees in exchange for providing liquidity, users will also be able to collect $BICO rewards by staking their NFT positions within the Farms tab of our new user interface. At the time of this post, the updated interface is available for all hyphen users to start earning fees and collecting $BICO by contributing up to $10 million in total liquidity from all providers.

We’ve created this guide to help you become a liquidity provider in no time, after all, spots are limited!

Follow this simple guide for adding and managing liquidity as a provider in Hyphen 2.0. Thanks to our new interface it’s incredibly easy to do so, try it out for yourself!

How to Add Your First Liquidity Position in Hyphen

Step 1: navigate to the Hyphen interface and connect your wallet

Visit: Hyphen

Step 2: navigate to the pools tab and select one of the open pools below (see pool capacity on the right)

Step 3: hover over the icon to see the reward and fee APY%

Step 4: toggle the amount you’d like to add as liquidity and select confirm supply

Step 5: to complete, simply confirm the transaction in your connected wallet

Demo: how to add liquidity

How to Increase Liquidity in an Active Position

Once your first position is added, we’ve made it incredibly simple for you to add additional liquidity. Check it out!

Step 1: select the position you’d like to increase in the pools tab under “your positions”

Step 2: select “increase liquidity”

Step 3: toggle the amount you’d like to add and select confirm

How to Remove Liquidity

Step 1: select the position you’d like to remove under “your positions”

Step 2: toggle the amount you’d like to remove and select “confirm removal”

Step 3: to finish, simply confirm the transaction in your wallet

How to Collect Fees

Step 1: select your position in the pools tab

Step 2: choose “collect fees” and confirm

How to Stake an NFT

Step 1: navigate to the farms tab and select the position you’d like to stake under “your farms”

Step 2: select “approve NFT” and confirm the transaction in your wallet

Step 3: watch as your BICO rewards begin to grow!

PS: once you stake your position as an NFT, it will be longer be shown in the pools tab.

How to Claim NFT Rewards

Step 1: select the position you’d like to claim rewards for in the farms tab

Step 2: select claim reward

Step 3: confirm the transaction in your wallet

How to Unstake your NFT

Step 1: select the NFT you’d like to unstake and select unstake NFT position

Step 2: confirm in your wallet

P.S. DO NOT SELL your NFT. Selling your NFT will transfer all your underlying liquidity on Hyphen to the buyer.

If you have any additional questions about becoming a liquidity provider, check out our FAQ page or contact our support team at #hyphen-support on Discord.

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