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Your Guide To Use Cases For Epsilon LP Tokens

Published date: October 28 2021

Epsilon is the official implementation of the Curve automated market maker (AMM) protocol, and it’s currently up and running on Kusama. Let’s look at how Epsilon handles user liquidity and claim rights via LP (liquidity pool) tokens.

How do you claim LP tokens?

Liquidity providers get LP tokens for depositing stablecoins into the Epsilon pool. These LP tokens represent a user’s share of the overall pool liquidity, and they have a number of applications within Genshiro. Equilibrium will also support these tokens in the future when we win a Polkadot parachain slot.

The Epsilon liquidity pool currently accepts USDT, USDC, BUSD, and EQD from Ethereum and BSC networks. When you make a deposit into the pool, you will receive LP tokens that represent your share of that liquidity. LP tokens are also entitled to 0.02% on every trade that happens in the pool. You can withdraw your LP tokens at any time to get your stablecoins back.

Genshiro accepts Epsilon’s LP tokens!

LP tokens have several interesting use cases on Genshiro, Equilibrium’s canary network on Kusama. Not only can you receive your 0.02% share of Epsilon swaps, but you can also deposit your LP tokens in the liquidity pool to earn up to 25% supply APR at the same time.

You might also use your LP tokens as collateral for borrowing assets. Then you can trade on margin, for example, going long or selling short. In order to get your LP tokens back, you just need to repay your debt — that’s it.

Let’s walk step-by-step through how to deposit your LP tokens into the liquidity pool to start earning 25% supply APR in GENS:

1) Deposit your stablecoins (USDT, USDC, BUSD, EQD) into the Epsilon pool
2) Receive LP tokens in exchange, and start receiving 0.02% by providing liquidity to the pool
3) Deposit your LP tokens into the Genshiro liquidity pool (there is currently a $1,000 deposit minimum)
4) Start farming and receive GENS as a reward!

That’s all there is to it. Start swapping your stablecoins with minimum slippage, deposit into the liquidity pools, and start earning with Epsilon and Genshiro.

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Your Guide To Use Cases For Epsilon LP Tokens was originally published in Equilibrium on Medium, where people are continuing the conversation by highlighting and responding to this story.