In our previous article, we have explained what is the Adventure Token and LUNA Fund. We also explained how you can get the $TWA token and generate Adventure LP tokens by using it, as well as adding liquidity into the Balancer protocol.
In this article, we will explain how you can use the LUNA BPT and earn some more $TWA tokens as a reward.
The Adventure Token team has a DeFi dashboard and yield farming feature that users can use after the token burn.
Click on the DEFI Dashboard and it will redirect you to the page.
Connect your MetaMask wallet.
The dashboard page looks like this. You can see the below tabs:
- Provide Liquidity
- Yield Farm
This page will list the LP tokens that the user holds.
You can see the amount of Uniswap liquidity pool tokens (TWA LP) and Balancer pool tokens (Luna BPT) here.
The Yield Farm tab lists the pool supported by the DeFi dashboard where a user deposits their Luna BPT token and views the reward that they will earn.
You will find two yield farms there:
You can deposit the Luna Fund BPT tokens into the Luna Fund yield farm. The farm has a vesting period of 10 weeks, but you can withdraw the tokens and leave the yield farm at any time.
Users can also check the reward earned from farming that will accumulate and will be paid out to their wallets once the vesting period is over.
- LunaH/Luna Fund Hedge BPT
The DeFi dashboard supports another yield farm called the Luna Fund Hedge BPT that users can join. Using Luna Hedge BPT, the intention is to create a secondary market for the Luna Fund token. Arbitrageurs will equalize the price of the token across various markets, driving greater trading volume.
Since we have Luna BPT token, we have selected the first pool.
Click on Deposit and enter the desired amount.
Confirm the MetaMask transaction.
Once the transaction is successful, you can see the staked Luna BPT as highlighted in the below screenshot.
Users immediately start receiving rewards once they stake their LUNA BPT tokens in the yield farm.
You can also remove the liquidity from the yield farm at any time and withdraw the amount that you have earned till that period without completing the 10 week vesting period.
To remove liquidity, click on the Remove button. Enter the amount you wish to remove.
You can redeem the amount that you have provided as liquidity along with all the rewards earned once the vesting period of 10 weeks is over. Here also, you can remove your investment in either a select single asset or multi-asset.
To Redeem, go to the Redeem tab.
Single Asset Redemption
You will be able to choose any of the underlying tokens that make up the Luna Fund.
- TWA LP
Press max against LUNA BPT and the application will automatically take the token amount, including rewards.
If you want to remove your investment in multi-asset mode, then the dashboard will calculate the amount of each token that you will receive against your LUNA BPT.
Now let’s consolidate the various rewards that a user will receive by doing these entire activities:
Reward 1: From the $TWA Token
The current circulating supply of 5.9 million will reduce at a rate of 1% of the transactional value with each transaction. The constant decrease in token supply will lead to an increase in token price.
Reward 2: From the Adventure LP on Uniswap
Users will earn fees equal to 0.3% of all transactions. This amount will be divided among the liquidity providers.
Reward 3: From the Luna Fund Balancer Fees
And the biggest reward will come from the Luna Fund. You will earn a fee equal to 2% of all transactions, which is then divided among the liquidity providers. All rewards up until this point are represented in the value of your position in the Luna Fund, which is tied to your BPT tokens.
Reward 4: Luna Fund Balancer Rewards
Every Tuesday each week, you will receive a small amount of BAL Balancer tokens as a bonus that will be airdropped to your wallet from a pool of 145,000 BALs. These are in addition to all the fees that accumulate in your liquidity position. The reward will be given to every investor that supplies liquidity across the whole platform.
Reward 5: $TWA Token From Yield Farming
You can earn a $TWA token if you have staked your LUNA BPT token into the yield farming pool.
The Adventure Token project is different from other yield farming projects. This project provides yield on Balancer LP tokens created by depositing Uniswap LP tokens. As a result, along with the normal yield benefits, a user will be able to get rewards from both Uniswap and Balancer. Added to this is the 1% burning of TWA tokens on the transaction value every time a transaction happens. The yield is also calculated in stablecoin terms (USDC), paid in TWA.
Resources: Adventure Token Medium Blog
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