What Is APY in Yield Farming?
What are Liquidity Pools and How do they Work?
Liquidity pool is a supply of tokens that are locked into a smart contract which facilitate efficient asset trading while allowing investors to earn a return on their pooled assets. A healthy supply of liquidity from a variety of providers are essential to the long-term growth and stability of a crypto asset, so protocols reward liquidity pool providers with high APYs.
How to add Liquidity to CaliCoin Liquidity Pool
The following example demonstrates what happens when a user contributes to a liquidity pool on PancakeSwap, After adding your CALI/BNB assets, you will receive PancakeSwap LP tokens, which represent a share of the provided assets in the PancakeSwap smart contract.
When supplying liquidity to PancakeSwap, the assets need to be provided in 50/50 proportions. That is, when adding $500 in liquidity to the CALI/BNB pool, $250 in CALI and $250 in BNB must be added, for the liquidity to be approved.
Visit the PancakeSwap liquidity page and add equivalent amount of $CALI/BNB pairs