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Author: Admin | 2025-04-28
To LP tokens that have been bonded for a minimum amount of time. For instance, a Pool 1 LP share, 1-week gauge would distribute rewards to users who have bonded Pool1 LP tokens for one week or longer. The amount that each user receives is in proportion to the number of their bonded tokens.The rewards earned from liquidity mining are not subject to unbonding. Rewards are liquid and transferable immediately. Only the principal bonded shares are subject to the unbonding period.However, as with any opportunity for gain, there is of course some degree of risk; i.e. an individual could be better off holding the tokens rather than supplying them.This outcome is called impermanent loss and essentially describes the difference in net worth between HODLing and LPing (more here). Liquidity mining mentioned above helps to offset impermanent loss for LPs. There are also other initiatives within the Osmosis ecosystem and beyond exploring other mechanisms to reduce impairment loss. How do I get involved in liquidity pools So you’re sold on their potential and now you want to get involved?Liquidity pools can be access across DeFi, whether in the Ethereum ecosystem using UniSwap and SushiSwap, or closer to home for cheqd in Cosmos, through Osmosis and Emeris. For the purpose of this article we’ll share how to get involved using Osmosis.First, head to Osmosis and click enter the lab. Once you’ve agreed to terms and you’re ‘in the lab’ you’ll see some trading pairs and a button to connect your wallet (bottom left of the dashboard). You can then select Keplr wallet which will automatically connect to your Keplr wallet if you’ve already set it up as a Browser extension. Next, you’ll need to deposit the assets you would like to contribute towards a Liquidity Pool. You can see the available Liquidity Pools under ‘Pools’. For example, if you would like to contribute to the Pool #602 : CHEQ / OSMO, you will need to deposit both of these tokens.To do so, select ‘Assets’ and find the tokens you would like to deposit to contribute to the pool. Note: if you already hold OSMO in your Keplr wallet you won’t be required to deposit.Once you have deposited enough tokens for both sides of the pools (i.e. ensure that if the pool is setup as 50:50, you must have the equivalent amount is USD on both sides)Next, find your pool and select ‘Add/ Remove Liquidity’. Here you’ll be able to add tokens on both sides of the pool. On selecting ‘Add Liquidity’ you’ll then be directed back to Keplr to approve the transaction (a small fee is required).Once you have added liquidity to the pool, you’ll receive your LP tokens (a token representing your share of the total pool). Now it’s time to start ‘Liquidity Mining’.You’ll now be able to see your total Available LP tokens. Below this you’ll see an option to ‘Start Earning’. Once here you’ll see a few options for your unbonding period (i.e. the amount of days it takes
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