Recently, the Rubic Protocol integrated the Algebra DEX into its ecosystem. Which means that now, both Algebra and Rubic users are able to complete On-Chain swaps on Rubic with any token represented on Algebra, without hassle.
At the moment, swaps are available on the Polygon network; with the possibility of expanding to other blockchains when Algebra integrates other networks, too.
This integration is an exciting event for both the Rubic & Algebra communities, and that is why we want to celebrate it by setting up a joint farming event! Get ready and make sure you will participate in it on time, as the event is going to take place very soon.
Here is the most important information about the upcoming event — the necessary conditions of participating and the benefits you can receive:
Expected APR: 100%
Pair: $MATIC / $RBC
$ 8,000 worth of rewards in $ALGB / $RBC: 70K ALGB and 14K RBC
How to create a liquidity pool on Algebra
As Algebra introduces concentrated liquidity technology on Polygon, you will probably notice significant innovations compared to average v2 DEXs. To work with liquidity pools correctly, you need to understand two important concepts: concentrated liquidity itself and price ranges.
Concentrated liquidity helps one to allocate their funds not on the entire price range from 0 to infinity, but on a specific price range. Due to this, even relatively small LPs get an opportunity to earn more by focusing on more precise price ranges, or choosing active strategies in LP and adapting their positions to sharp price moves. If you choose a smaller price range, your liquidity will have a higher likelihood of being used than the liquidity of those who choose wider ranges.
Additionally, it’s possible to create multiple positions for one liquidity pool on Algebra.
Choosing a price range essentially means selecting the boundaries within which your liquidity will be available for completing trades and earning fees. On the Algebra interface, it looks like the following:
To select the correct price range, you need to consider possible price moves for the selected coins. Type in the min/max price, or move the bars on the diagram.
The most important thing you need to understand when joining farming is that your liquidity will be locked during the whole period of the event (January 6th — January 20th). Set up the price ranges carefully: farming rewards will be distributed proportionally to the fees earned, and your liquidity earns fees while the prices stay within the price range.
How to create a position and start Liquidity Providing on Algebra
To join the farming event, you need to create a position and get an NFT first. You can create a position following these steps:
- Go to Algebra and launch the app.
- Go to the Pool tab.
- Click the “+ New Position” button.
- Choose the tokens you want to create a position with. To join the first farming event with Rubic, you need to choose the RBC/MATIC pair.
- Choose the price range you need and the amount of tokens to be deposited.
6. Click “Approve RBC/MATIC”.
7. Click on the “Add Liquidity” button, and confirm it on MetaMask.
Once the liquidity pool is created, you will receive an NFT dedicated to your position that you will need for farming. You will be able to see all your positions and the fees you earned on the Pools tab.
How to enter the farming event
If the liquidity pool is created, you can now enter the farming event:
- Go to the Farming tab.
- Click on “Future events”.
- Choose the event you want to join by clicking the “Farm” button.
4. Choose the NFT of the liquidity pool that you created earlier, and approve it with MetaMask. You can add several NFTs to one farming event — for example, in case you want to join farming with several positions with different price ranges.
5. Then, click on “Transfer NFT” and approve it on MetaMask once again.
6. Сlick on “Deposit NFT” and approve it on MetaMask for the last time. Please be sure you deposited your NFT and haven’t missed any steps.
Now you are participating in the Algebra farming event!
Please notice that you won’t be able to see the exact amount of rewards you earned until the end of the farming event. The displayed number is approximated and may change.
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