What you need
There are separate liquidity pools for different tokens. Users must have:
- The liquidity pool’s required token
- The gas token for the respective blockchain to pay for gas fees.
For example, the USDC liquidity pool on Arbitrum requires users to deposit USDC into the pool and have ETH to pay gas fees for transactions. Both USDC and ETH must be on the Arbitrum network.
For detailed instructions on managing pools, refer to the following articles:
- How to deposit funds into a liquidity pool
- How to view 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 how easily a token can be bought or sold.
Liquidity pools are key to decentralized finance (DeFi) because they support trading activities, such as swaps and lending. For example, a USDC-ETH swap pool enables users to swap between USDC and ETH.
Contributing to liquidity pools is incentivized. For instance, users depositing USDC into a lending pool on Arbitrum via the Aave dapp can earn USDC and ARB (Arbitrum’s native token). While liquidity pools can generate passive income, users should be aware of risks like impermanent loss, smart contract vulnerabilities, and market volatility.
How much will this cost?
Valora does not currently charge a fee for the crypto-earning program. However, gas fees apply to blockchain transactions. When users deposit or collect earnings, the estimated gas fee will be displayed.
What is the Valora Gas Refund?
Valora may cover transaction fees for users participating in the Earn pools during certain promotions. After signing a transaction to participate, users may see an additional transaction in their activity feed, reflecting the gas refund. This promotion is subject to change and may not always be available.
When are rewards available?
After making a deposit, users start accumulating rewards and earnings. Funds can be collected and withdrawn from the pool as in the respective dapp.
Where can users learn more about these pools?
Valora connects users to pools from decentralized liquidity market protocols. More information can be found on their respective websites:
Do users have to use Valora to manage their pools?
Valora simplifies pool management, but users can also manage pools directly through the respective dapp. The dapp can be accessed by tapping on the pool, then tapping on the View Pool link at the bottom of the screen.