Liquidity Mining with Sushi LP

How to stake ARCX/ETH LP and receive ARCX rewards

Intention and Basics of Liquidity Pools (LPs)

Why is Liquidity important to ARCX?

Though ARCX is a governance token, it is important for there to be enough of it 'liquid' (readily exchangeable) on the Ethereum network so that it can be more easily acquired with ETH and not have its price suffer badly from volatility spikes.

Why use a DEX for liquidity?

Because ARCX is focusing on identity first in its DeFi Passport, it first aims to support and be exchangeable on a decentralized exchanged (DEX). These DEXs work on a automated market-maker (AMM) model that requires liquidity to be pooled and profits shared. DEXs are therefore more egalitarian and much for flexible to list the ARCX token than a centralized exchange (CEX). This video provides a detailed introduction on the need for AMMs in crypto, their efficiencies, and their automated processes.

Why Incentivize Liquidity Providers ('Liquidity Mining')?

Since AMM liquidity pools open up liquidity providers to potential 'impermanent loss' (IL) and 'inventory loss,' rewarding liquidity providers in ARCX is meant to avoid these sources of loss. This twitter thread (1/19) provides a brief introductions to these sources of loss.

Why Sushiswap?

Sushiswap is originally a fork of Uniswap focused on egalitarian profit distribution and decentralized governance. The ARCx DAO is focused on embracing decentralization and community, so Sushiswap was chosen as the first DEX to incentivize. This video provides a detailed explanation of all of the features of Sushiswap, which ARCX would hope to leverage in the near future.

ARCX is incentivizing liquidity providers to the Sushiswap ARCX/ETH pool (done on Sushiswap's user interface) with a high-yield farm (on ARCX's user interface). This process is a bit complicated for new users, so it is detailed below with video tutorials by community member @Blaze07 on Discord (Blaze07#9274)

Getting ARCX

To provide liquidity, your wallet must first have some ARCX token. This can be most readily bought on Sushiswap itself.

How to buy ARCX on Sushiswap

Adding ETH/ARCX Liquidity to Sushiswap

Sushiswap allows users to contribute liquidity to any pair in a 50:50 ratio. In exchange, you receive a Sushi LP token (SLP).

Your SLP token is a distinct token from ETH or ARCX and it may not appear in your wallet by default. You may have to 'add' the 'custom token' to your wallet; this process depends on the wallet software you are using. The contract address for the ARCX/ETH SLP token is 0x87C33321E1755ab54b0A27D4969A72B953486E75 and you can monitor more about the ARCX/ETH SLP pool on Sushiswap analytics site.

Staking LP token to receive ARCX rewards

You must 'stake' the SLP token in on the ARCx app (separate UI from Sushiswap) directly to receive rewards.

Note there is a small bug with the ARCx app UI that may not update your successful staked position until you refresh the page.