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08/27/2022

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Maximizing yields on WingRiders walkthrough

Getting the most bang for your buck otherwise known as capital efficiency is important in DeFi.

Maximizing yields on WingRiders walkthrough


 

Hey Riders,

getting the most bang for your buck otherwise known as capital efficiency is important in DeFi. Knowing how to use the DEX and all the services it offers puts you on the right track. So we decided to write a practical walkthrough guide on how to maximize your yields on WingRiders, which walks you through the different services that can help you achieve this.

Currently, there are five tiers of reward opportunities on the DEX: Swap Fees, ADA staking, yield farming, double yield farming and boosting. Let’s go through all of them step-by-step.

To start, you need to have a Cardano wallet with some ADA in it. To set it up watch our video How to get started with WingRiders.

Besides ADA you need at least one other asset. That’s because you need to provide two assets into a liquidity pool for the DEX users and as a reward you will receive a portion of the fees that they pay for each Swap transaction within the liquidity pool. In this example we’ll use DRIP as the other asset, as in the later stages make you eligible for even more rewards. If you hold only ADA and you want to get DRIP or any other asset, you can simply exchange some ADA in the Swap section.

Here’s the How to swap video to guide you through the process.

Now, having the ADA and DRIP in your wallet, you deposit them into the particular liquidity pool to be used for swaps and in return you’re eligible for two tiers of rewards at once: First — a portion of the transaction fees we mentioned. Second — the ADA you provide into the pool is automatically staked, gaining you staking rewards too.

So, to provide liquidity navigate to the Pools section of the UI and you’ll see all the available liquidity pools. There are currently 196 pools, but remember, that only those containing ADA make you eligible for the ADA staking rewards. Also, not all the pools have an associated farm for further gains. If you want to maximize your gains, you need to add liquidity to a pool that has a farm. You can tell if a pool has a farm by the tractor icon. In this example, we are adding liquidity in the ADA/DRIP pool, which provides the ADA staking rewards, and it has a farm for next level yields too.

When making a decision to add liquidity, you should know and understand all the terms below:

  • The Fees 24h and Fees 7d are the amount of fees this pool has generated from swappers in Dollar value in the last 24 hours and the last 7 days.
  • The Pool APR breakdown is very important to know how profitable the pool is for you. It is made up of the fees and staking rewards as a percentage that will be returned to this pool. The higher the APR, the better, of course.
  • The Issued LP tokens shows the number of liquidity provider tokens that have been issued for this pool. They are issued when you add liquidity to any pool and represent the share of the pool that you have provided to.
  • Understand the principle that by providing liquidity into any pool you are also subject to impermanent loss.

To see the complete guide on how to provide liquidity and auto-stake, watch our video How to stake. Once you’re there, you can see that you have provided liquidity in the ADA/DRIP pool in the Pools section and also in Staking.

For providing the liquidity you receive liquidity provider tokens, or simply LPTs. They are shown in your wallet and for further yields you will need to deposit them in a corresponding farm. The longer you keep your LPTs locked in a farm, the higher your gains will be. So, let’s move on to farming.

Similarly to the Pools, notice the key information displayed below each Farm when considering the right farm:

  • My effective liquidity is the amount of deposited liquidity that your rewards will be calculated from. To gain the most, make sure to deposit the liquidity into the farm before an epoch starts and to keep it in there for the duration of the whole epoch, which is 5 days.
  • Farm effective liquidity represents the total amount of effective liquidity from all farmers for that epoch.
  • Current epoch rewards is the total amount of rewards that will be divided between all farmers for current epoch in this farm, and the form of the rewards, in this case WingRiders tokens, or simply WRTs and DRIP tokens, as this is a double yield farm, earning you not just WRTs, but also DRIPs.
  • Estimated epoch WRT earnings is a glimpse into the future gains that will come from that farm. With this you see up to 10 days ahead in time. The current epoch rewards do not change. The next epoch reward numbers will not be changing with a 99% probability. Also, if you hover over the APR %, you can see the next epoch APR % breakdown.
  • Rewards earned shows all the rewards you have earned from all the previous epochs.

Now seek the corresponding farm, which is in this case is ADA/DRIP and press Deposit, to lock your LPTs in this farm. Choose the amount of your LPTs you want to deposit, confirm it in the app and in your wallet and wait for the transaction to complete. Now you’re a farmer reaping the gains of the farm you have just deposited to. Note you’ll start accumulating your first farming rewards at the change of the epoch after your deposit, and you’ll be then able to harvest them at the end of every full epoch.

There are single and double yield farms. In a single yield farm, like this one. In a single yield farm you get one type of reward which is WRTs. In a double yield farm, specifically ADA/DRIP, you get two types of rewards — both WRTs and DRIPs.

Therefore, at this point you are earning quadruple rewards: fees, ADA staking, WRTs and DRIPs.

Once you have gained some rewards after the epoch has ended you can harvest these rewards. They are not airdropped to your wallet, you have to do it manually by pressing the Harvest button. Just confirm it in the UI, then in your wallet, wait for the transaction to complete and you’ll see the harvested tokens in your wallet.

The last, fifth tier that will further increase your gains is the Boosting Vault. Simply said, by locking your WRTs in it, you’ll boost the amount of rewards from each farm you’re in. Just make sure that the farm has boosting enabled, as not all the farms do. You can tell if the boosting applies to a farm by the lightning symbol. Now let’s take a look at how it works:

In Farming you can see the Boosting vault. It shows:

  • The Next epoch max rewards — this is the maximum amount of boosting rewards you are eligible for all the farms you’re in, if you deposit the maximum effective WRTs into the vault.
  • Next epoch estimated rewards is the total amount of rewards that you should gain in the next epoch based on your current deposited liquidity in farms and WRTs in the vault.
  • Deposited boost WRTs are your WRTs deposited in the vault. The more WRTs you deposit, the more rewards you get from the maximum you are eligible for.

Now let’s deposit some WRTs in the vault and see what it does. You can deposit the WRTs you hold in your wallet. Therefore, if you want to deposit WRTs that you’ve earned by farming, you need to harvest them from WingRiders into your wallet. Now click on the Boost. The amount you deposit is up to you. What you should know is that the boosting rewards for a farm are based on two factors:

First is your effective liquidity in the farm. Just like with farming rewards, the more liquidity in the farm you have, the more farming and boosting rewards you get.

Second, the amount of rewards from boosting is mirroring the amount of WRTs you deposit and calculated through a function similar to a logarithmic curve. The function has an upper bound with a limit so if you deposit more WRTs than the amount that yields maximum eligible boosting rewards, you won’t receive more than this maximum amount. Unless you provide more liquidity into the farm.

This curve is interactive and works like a slider. You can use it to determine the best amount of WRTs to deposit for you personally. You can also simply press the MAX button to get an estimate of your next epoch boosting rewards with all the current WRTs you hold. Or you can input a precise number of WRTs you would like to deposit. Confirm it here, in your wallet, and wait for it to complete as any other transaction.

The boosting rewards will be calculated after the epoch and auto-compounded to your Boosting Vault to maximize your future rewards. This is done automatically for your convenience. If you would like to withdraw the additional rewards instead, simply decrease the amount of deposited tokens to your previous amount.

Now with WRTs deposited in the vault, you can see how it affects your yields from the farms:

Current epoch boosting rewards. The first number shows how many WRTs you should gain by boosting based on your current deposited liquidity in this farm and WRTs in the vault. The second number represents the estimated maximum you are eligible for, if you deposited the maximum effective amount of WRTs.

Next epoch boosting rewards shows the estimated boosting rewards you are eligible for the next epoch.

Given all these, you can see that the boosting feature is very convenient, especially for the smaller liquidity providers:

The logarithmic curve is generous in rewards for those who lock a lesser amount of tokens rather than a great amount of them.

The boosting rewards are compounded in the vault, making your deposit and yields higher each epoch automatically.

To size up your deposit you need only WRTs, no need to deposit ADA as well, like you would in farming.

Lastly, you don’t need to withdraw your rewards after each epoch, as they are auto-compounded, saving you on the transaction fees.

To sum up, this is how you maximize your yields on WingRiders:

  • Provide liquidity into a pool to gain portion of the fees
  • Gain ADA staking rewards from any ADA you have deposited
  • Provide your LPTs into the associated farm for farming rewards.
  • Choose a double-yield farm to not only get WRTs, but other tokens too.
  • Provide your WRTs into the boosting vault to raise your rewards from each farm.

The best way to maximize your yields is by doing, and we hope this step-by-step guide will help you get started if you already haven’t,

WingRiders

 

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