Earn More By Staking Your Cardano Index LP Tokens
Apr 24, 2023
The Cardano Index LP token has recently become eligible for staking on the Cardano blockchain through the VyFinance platform’s newly created staking vault. This tutorial will guide you step-by-step on how to obtain liquidity in the Cardano Index on the Blueshift DEX, transfer your LP tokens to the Cardano blockchain, and begin staking your liquidity on the VyFinance platform.
Staking your Cardano Index LP tokens on VyFinance offers a one-of-a-kind opportunity for users to maximise their returns by combining two sources of rewards. By participating in this innovative staking model, you not only earn trading fee rewards from the Blueshift DEX but also receive additional rewards in the form of VyFi tokens through staking in the VyFinance staking vault. This pioneering approach makes the Cardano Index LP token the first staked liquidity providers token on the Cardano blockchain, showcasing the collaborative innovation between Blueshift and VyFinance.
Benefits of Staking Cardano Index LP Tokens on VyFinance:
- Dual Rewards System: By staking your Cardano Index LP tokens on VyFinance, you gain access to a unique dual rewards system. This allows you to earn a portion of the trading fees generated on the Blueshift DEX while simultaneously earning additional VyFi token rewards from the VyFinance staking vault.
- Enhanced Returns: The combination of trading fee rewards and VyFi token rewards can lead to increased returns on your staked assets. This incentivises users to participate in providing liquidity and staking on the VyFinance platform, ultimately contributing to the growth and stability of the Cardano ecosystem.
- First Staked LP Token on Cardano: The Cardano Index LP token represents a milestone in the Cardano blockchain’s evolution, as it is the first staked liquidity providers token on the network. This innovation highlights the continuous development and collaboration within the Cardano community.
- Exposure to Cardano Ecosystem: Staking Cardano Index LP tokens allows users to gain exposure to the broader Cardano ecosystem, benefiting from the growth and success of multiple projects within the network.
By staking your Cardano Index LP tokens on the VyFinance platform, you can take advantage of this groundbreaking opportunity and benefit from the dual rewards system. This collaboration between Blueshift and VyFinance demonstrates the commitment to innovation and growth within the Cardano ecosystem, paving the way for more novel solutions in the future.
Obtaining the Cardano Index LP Tokens
For many first-time users of the Blueshift DEX, it is essential to have various Cardano Native tokens in your wallet to provide liquidity on the platform. To obtain these tokens, you can choose from several Cardano-based DEXs, such as Minswap or WingRiders. In this tutorial, we will walk you through the process of acquiring Cardano Native tokens and bridging them from the Cardano blockchain to the Milkomeda network, which is necessary to interact with the Blueshift DEX.
Step 1: Choose a Cardano DEX
Select a Cardano-based DEX, like Minswap or WingRiders, to obtain the Cardano Native tokens needed for providing liquidity on the Blueshift DEX. Ensure that you have a compatible wallet connected to the Cardano blockchain with sufficient funds to make the token purchase.
At this point in time, you can use BLUES, COPI, NMKR and VYFI tokens to be able to gain access to the Cardano Index.
Step 2: Purchase Cardano Native Tokens
Navigate to the chosen Cardano DEX and locate the trading pair for the Cardano Native tokens you wish to acquire. Input the desired amount of tokens to buy and confirm the transaction. Once the transaction is successful, the purchased tokens will appear in your wallet.
Step 3: Bridge Tokens from Cardano Blockchain to Milkomeda Network
To interact with the Blueshift DEX, you must transfer your Cardano Native tokens from the Cardano blockchain to the Milkomeda network. To do this, use the bridge option on our DEX.
Navigate to the bridging page and follow the bridge service’s instructions to initiate the transfer, ensuring you input the correct token type and amount. Confirm the transaction and pay any applicable fees. The bridging process may take some time, depending on the bridge service’s speed and network congestion. You will need to repeat this process for each token you may want to transfer.
Step 4: Confirm Token Transfer
Once the bridging process is complete, check your wallet connected to the Milkomeda network to ensure the Cardano Native tokens have been successfully transferred. These tokens are now ready for use on the Blueshift DEX.
Providing Liquidity to the Cardano Index on Blueshift
Providing liquidity to the Blueshift Cardano Index involves contributing assets to the liquidity pool on the Blueshift DEX. This step-by-step tutorial will guide you through the process of becoming a liquidity provider for the Cardano Index on the Blueshift DEX.
Step 1: Connect Your Wallet
Begin by connecting your wallet to the Blueshift DEX. Ensure it is compatible with the Milkomeda network and contains the required Cardano Native tokens and assets to contribute to the liquidity pool. Additionally, ensure you have enough funds to cover transaction fees.
Step 2: Navigate to the Pool Section
Go to the Blueshift DEX website and locate the “Pool” section. This is where you can add liquidity to the Cardano Index by contributing assets to the pool.
Step 3: Select the Cardano Index Trading Pair
Find the trading pair associated with the Cardano Index within the pool section. This pair consists of the assets you need to contribute in order to provide liquidity to the Cardano Index. The pair may consist of Cardano (ADA) and other Cardano Native tokens that form the index.
Step 4: Input Asset Amounts
Enter the amounts of each asset you want to contribute to the liquidity pool. The amounts should be based on the pool’s current ratio, which is displayed on the platform. Ensure you have sufficient funds in your wallet to cover both the asset amounts and any transaction fees.
Step 5: Approve the Transaction
Before contributing assets to the pool, you may need to approve the transaction in your wallet. Confirm the transaction details and authorise the required asset allowances to be used by the Blueshift DEX.
Step 6: Provide Liquidity
Once you have approved the transaction, click the “Provide Liquidity” or similar button on the Blueshift DEX platform. Confirm the transaction in your wallet, and wait for the transaction to be successfully processed.
Step 7: Receive LP Tokens
Upon successfully providing liquidity to the Cardano Index, you will receive Cardano Index LP tokens in your wallet. The number of LP tokens you receive corresponds to your share of the liquidity pool.
By following these steps, you have successfully provided liquidity to the Blueshift Cardano Index. As a liquidity provider, you can earn a portion of the trading fees generated from swaps involving the Cardano Index trading pair. Additionally, you can stake your Cardano Index LP tokens on platforms like VyFinance to earn extra rewards through VyFi tokens.
Moving Your Cardano Index LP Tokens to the Cardano Blockchain
Moving your Cardano Index LP tokens back to the Cardano blockchain requires a cross-chain bridge service. This tutorial will guide you through transferring your LP tokens from the Milkomeda network to the Cardano blockchain.
Step 1: Retrieve Cardano Index LP Tokens
If you have staked your Cardano Index LP tokens on the VyFinance platform, you must first unstake them. Connect your wallet to VyFinance, navigate the Cardano Index staking vault, and follow the unstaking procedure. Upon successful completion, your LP tokens will be back in your wallet connected to the Milkomeda network.
Step 2: Connect to a Cross-Chain Bridge Service
Choose a reliable and trusted cross-chain bridge service compatible with the Milkomeda network and the Cardano blockchain. Ensure the bridge supports the transfer of Cardano Index LP tokens.
Step 3: Initiate Token Transfer
Follow the bridge service’s instructions to initiate the transfer of your Cardano Index LP tokens. Input the correct token type, amount, and destination address (your Cardano blockchain wallet address). Double-check all details before confirming the transaction, as errors may result in losing your tokens.
Step 4: Pay Applicable Fees
Cross-chain bridge services may require fees for the token transfer process. Ensure you have enough funds to cover these fees in the relevant wallet (usually the source wallet on the Milkomeda network).
Step 5: Monitor Transfer Progress
The token transfer process may take some time, depending on the bridge service’s speed and network congestion. Monitor the progress of your transfer and wait for the bridge service to confirm its completion.
Step 6: Verify Token Receipt on Cardano Blockchain
Once the transfer is complete, check your wallet connected to the Cardano blockchain to verify the receipt of your Cardano Index LP tokens. Your tokens should now be successfully transferred and available within the Cardano ecosystem.
Following these steps, you can successfully move your Cardano Index LP tokens from the Milkomeda network to the Cardano blockchain.
Stake Your LP Tokens on VyFinance Cardano Index Vault
Step 1: Navigate to the VyFinance Website
Visit the VyFinance platform’s official website for various staking options, including the Cardano Index Vault.
Step 2: Access the Vaults Section
Click on the “Vaults” tab or menu item on the VyFinance platform. This section contains information about the available staking vaults, including the Cardano Index Vault.
Step 3: Locate the Cardano Index Staking Vault
Find the Cardano Index staking vault within the filtered list of LP vaults. This is where you will stake your Cardano Index LP tokens to start earning additional rewards.
Step 4: Connect Your Wallet
Connect your wallet containing the Cardano Index LP tokens you want to stake to the VyFinance platform. Ensure the wallet is compatible with the Cardano blockchain and the VyFinance platform.
Step 5: Initiate the Staking Process
Click the “Stake” button or a similar option on the Cardano Index Vault. This will open a window where you can input the amount of Cardano Index LP tokens you wish to stake.
Step 6: Input Staking Amount
Enter the number of Cardano Index LP tokens you want to stake in the provided field. Double-check the amount to avoid any errors.
Step 7: Confirm the Staking Transaction
Once you have input the desired amount of LP tokens, confirm the staking transaction in your wallet. After the transaction is successfully processed, you will earn rewards based on the staked amount.
Following these steps, you have successfully staked your Cardano Index LP tokens on the VyFinance Cardano Index Vault. As a staker, you can now earn a portion of the trading fees generated on the Blueshift DEX and additional rewards in the form of VyFi tokens.
In conclusion, these tutorials have provided a comprehensive overview of the process to stake Cardano Index LP tokens, starting from obtaining the required assets, providing liquidity on the Blueshift DEX, transferring LP tokens back to the Cardano blockchain, and finally staking them on the VyFinance platform. By participating in this innovative staking model, users can leverage the unique opportunity to earn dual rewards and contribute to the growth of the Cardano ecosystem.
Staking Cardano Index LP tokens on the VyFinance staking vault showcases the powerful synergy between platforms built on the Cardano blockchain and those on the Milkomeda network. This seamless integration enables users to maximise returns by combining rewards from trading fees generated on the Blueshift DEX and additional rewards in the form of VyFi tokens. It also emphasises the ongoing innovation and collaboration within the Cardano community, paving the way for more advanced solutions and opportunities in the future.
By following these tutorials, users can successfully participate in this cutting-edge staking model, benefiting from the growth and success of multiple projects within the Cardano ecosystem. This not only serves as an incentive for users to provide liquidity but also strengthens the overall network, creating a more robust and reliable decentralised finance ecosystem for everyone.