Earn on your stablecoins by joining a USDC (on Arbitrum) liquidity pool directly from Valora. Tap Discover in Valora to get started.
What you need
There are separate liquidity pools for different tokens. You must have:
- The liquidity pool’s required token
- The gas token for the respective blockchain to pay for gas fees.
For a limited time, Valora is covering this fee.
For example, the USDC liquidity pool on Arbitrum requires you to have USDC to deposit into the pool, and ETH to pay the gas fees for any transaction. USDC and ETH must both be on the Arbitrum network.
For detailed instructions on managing your pools, check out the following articles:
- How to deposit funds into a liquidity pool
- How to view your liquidity pool earnings and rewards
- How to withdraw from a liquidity pool
FAQ
What is a liquidity pool?
A liquidity pool provides liquidity for blockchain tokens. Liquidity refers to the ease with which an token may be bought or sold.
These pools have become an integral part of decentralized finance (DeFi) because they are able to provide liquidity for trading activity, such as swaps and lending. For example, a USDC-ETH swap pool would allow you to swap between USDC and ETH.
Since liquidity pools require contributions, this is incentivized. For example, through the Aave dapp, you can deposit USDC into a lending pool for Arbitrum and you will earn USDC and ARB (the native token on the Arbitrum blockchain). Though participating in liquidity pools can generate passive income, contributors should be aware of associated risks, such as impermanent loss, smart contract vulnerabilities and market volatility.
How much will this cost me?
Valora does not charge a fee for the stablecoin earning program right now. However, since this is a blockchain transaction, a gas fee is required. For a limited time, Valora will cover the gas fees for all transactions related to the liquidity pools in this program. Otherwise, the estimated gas fee will be displayed whenever you make a deposit or collect your earnings and rewards.
I exited a pool, but it's still active and has funds. Why?
- You are earning rewards every second. Between the time it takes for you to start to exit the pool and when the transaction completes, you would have earned a tiny amount of rewards that was not part of your withdrawal. Exiting the pool again will usually completely exit the pool.
Why did I get ETH?
- For a limited time, Valora will cover your transaction fees when you participate in the Stablecoin Earn pools. To cover the fees, Valora will add funds to your wallet after you sign a transaction to participate in the pools, resulting in an extra transaction labeled “Valora Gas Refund” in your activity feed.
When are rewards available?
After you make your deposit, you start accumulating your rewards and earnings. You can exit the pool and collect your funds just like you would in Aave, but without the hassle of leaving Valora.
Where can I learn more about these pools?
Valora connects you to pools from decentralized liquidity market protocols. You can read more about pools on their respective websites:
Do I have to use Valora to manage my pools?
Valora makes it easy to manage your pools, but you can always visit the respective dapp and manage your pools there.