❔How to earn AMM rewards
Last updated
Last updated
AMM is short for Automated Market Makers. AMMs were introduced to Stellar in November 2021, allowing users to place their held Stellar-based assets into liquidity pools. In return, users earn a share of the fees acquired by the pool as Stellar users make trades over the liquidity pool.
AMM rewards add another incentive layer to markets on Stellar, allowing liquidity providers of voted markets to earn additional rewards. On top of the 0.3% pool fee, liquidity providers can receive a share of AQUA every hour when keeping their assets inside certain AMM liquidity pools.
Users need to meet the eligibility criteria and add liquidity to a rewarded market to receive rewards. Read below to see how to add liquidity to an AMM.
Once you have found a market eligible for rewards, it is time to deposit funds into the relevant AMM. A few Stelar UI’s allow their users to deposit into AMMs. In this example, we will use StellarX.
Head to StellarX and log in.
Under the AMM analytics section, search for the pool you would like to provide with liquidity.
Click on the pool and then the add liquidity button.
Enter the amount you would like to deposit, then click add liquidity one more time and confirm the deposit.
If a pool isn’t on the list, you can add the trustlines for the two assets in the Stellar network section of the settings. Click open trustline and input the asset issuer public key & asset code to add asset trustlines to your wallet.
Once you hold the relevant trustlines and hold a few of each asset, head to the add liquidity position section and select the two tokens you would like to deposit.
Input the amounts and press add liquidity, then confirm the transaction.
That’s it! Once you add liquidity to an eligible market pair, you will receive hourly payments of AQUA while the market is in the reward zone, and you continue to keep liquidity in the pools.
Your hourly AQUA payment is based on your share of the liquidity pool and how many other users are eligible and hold the AQUA trustline.
