SpookySwap: Step by Step in providing liquidity on Fantom

To do a quick wrap-up let’s get into what Fantom Network is about.

Fantom is a high-performance, scalable, and secure smart-contract platform. It is designed to overcome the limitations of previous generation blockchain platforms.

Fantom is permissionless, open-source, and decentralized. It uses a novel aBFT consensus mechanism called Lachesis which allows Fantom to be much faster and cheaper than older technologies, yet extremely secure.

What is SpookySwap? #

SpookySwap is a decentralized exchange (DEX) based on automated market-making for the Fantom Opera network. Spooky is different from other DEXs because they are investing in building a strong foundation with the BOO token as a governance token, diverse farms, grants to encourage a healthy ecosystem of Fantom projects, and user-centered service.

Connecting your Metamask wallet to the Fantom network #

Metamask wallets can be used to connect to Fantom.. You can monitor your balance with a web wallet. To make it easier to launch on all major platforms, it was created as a Progressive Web App (PWA).

It is necessary to click the settings icon in the top right corner of your MetaMask to enable access to the Fantom network. Once there, click the “Networks” tab and you will see a button to “Add Network”, where you can enter the following settings:

Here’s a list to make it easy for you to copy these settings:

• Network Name: Fantom Opera
• New RPC URL: https://rpcapi.fantom.network
• Chain ID: 250
• Currency symbol: FTM
• Block explorer URL: https://ftmscan.com

From within Metamask, this process adds the Fantom network to the list of available networks. Sometimes switching networks helps when Metamask is acting strange or if something isn’t showing up.

Bridging and Liquidity #

Stablecoins can be moved to Fantom cheaply and easily, but moving FTM is a bit more difficult. You can use SpookySwap’s bridge to move your assets to the Fantom Network. A FTM faucet can provide you with a small amount of FTM if you don’t have any. One way to get FTM is by using the Faucet bot in Fantom’s official Discord page. Click here to find out how.

Liquidity can be provided to any token pair trading on SpookySwap, but most users choose to provide liquidity to the pairs that currently offer farming rewards. You can compare the various APR % offered by these pairs on the SpookySwap app’s “Farm” tab. 

Steps to add liquidity to SpookySwap #

1. The first step is to trade or swap tokens so that the liquidity pool has an equal number of each token (50/50). 
2. In step 2, you will find two options under the “Liquidity” tab, “+ Supply” and “My Potions”.
3. Then Click the “+ Supply” button and select the two tokens you want to use for liquidity. Once you add liquidity, you will be required to “Approve” the tokens. 
4. Once you have entered the token amounts you want to supply, click the “Supply” button, and sign the transaction to complete the process.

Start earning rewards from LP tokens by staking #

1. You can then stake and earn farming rewards once you have the LP tokens from providing liquidity.
2. You can enter a farm by clicking on the “Farm” tab on the left side of the SpookySwap app
3. Click “Approve to stake” on the pair you’d like to use for farming
4. After clicking the “+ Stake” button, a box will appear asking you how many LP tokens you want to stake; enter the amount or click the “Max” button to use all of the tokens then click “Confirm”. 
5. When the transaction is complete, click “OK” to close the dialog box

You will now farm BOO tokens with your LP tokens and have the option to “Harvest” to collect your BOO rewards in your wallet. LP tokens can also be removed or added from staking using the (- Unstake) and (+ Stake) options. In order to withdraw funds from the yield farming program, you must use these buttons.

How to Withdraw Liquidity #

When you are ready to withdraw your liquidity from the farm, simply hit the (- Unstake) button, and the dialog box below will appear. At the same time, this action will harvest your BOO rewards and unstake the LP token from the staking contract.

To view your liquidity position, navigate to the “Liquidity” section of the app and select the “My Potions” tab. The details and options for your position can be viewed by clicking the downward facing arrow. When you open the page, you will see a menu option to remove liquidity (Withdraw) and it will tell you how many tokens you should expect to receive when you exit the liquidity pool.

A transaction must be approved by clicking “Approve” and then withdrawn by clicking “Withdraw”. Upon completing that process, you will have left the liquidity pool and your tokens will be returned to you.

Congratulations! You have should now know how to provide liquidity to the SpookySwap DEX on Fantom! If you found this article helpful, please share it on social media.