How to become a liquidity provider (LP) on Hashbon Rocket

This is a step-by-step guide on how to become a liquidity provider (LP) on Hashbon Rocket.

What is a Liquidity Pool?

Before diving deeper into providing liquidity on Hashbon Rocket, it’s worth defining the concept itself in order to develop a deeper understanding for the business model.

A liquidity pool can be thought of as a locked pot of crypto in a smart contract. This pool can be used for loans, exchanges, etc.

What sets LPs on Hashbon apart from traditional LPs (CeFi LPs) is the fact that Rocket decentralizes the process completely. In contrast, traditional liquidity is provided by a centralized organization (a bank for instance). In crypto, this is usually handled by a market maker that matches buyers with sellers. However, in DeFi’s case and ours, we incentify users to put their crypto into pools, thus, providing liquidity. Any individual user could become a liquidity provider on Hashbon Rocket and we’ve made the entire process simple and intuitive.

This means that all aspects of our project are decentralized, as we’re putting the decentralization in finance .

A Step-By-Step Guide On Providing Liquidity For Hashbon Rocket

In the past few years, crypto has seen incredible growth as many started investing and trading crypto. Little do people know, there is a lot of potential in providing liquidity as it could be a profitable and stable revenue stream. Here is how you could become an LP on Hashbon Rocket:

Step 1

Create a MetaMask wallet. Here’s the guide on how to set up and add HASH Token to your wallet.

Setup MetaMask (WEB)

Step 2

Visit Hashbon Rocket’s website and click on “Launch DAPP”

Step 3

Click on the “Connect Wallet” button on the top right side of the page.

Step 4

A prompt will appear on the top right side of your screen confirming that you’d like to connect your wallet. Click on “Next”. Continue by clicking on “Connect” and you should be all set!

Step 5

Now that your wallet is connected, you may proceed to the “pool” section of the app by clicking on “Pool” on the left side of the screen then click on “Create a new pool”.

Step 6

You’ll be faced with a screen with parameters that you’ll need to set.

Here’s what you’ll need to input for these parameters:

Exchange Token Address. This is where you’ll put the address of the token you’re offering. This is the token address and not the token wallet.

Receiving Token Address. This would be the address of the Token you’ll be receiving once users exchange using your pool.

Receiving Token Decimals. This is set by default to the most popular Decimal, which is 18. You may leave this as it is or set it based on your token.

Amount. This would be the amount of tokens you’re offering

Enter Exchange Rate. This is where you’ll be setting the exchange rate. While you could set it to whichever amount, keep in mind that the market may be competitive and you may need to set it accordingly.

Receiving Payment Address. This is the wallet in which you’ll be receiving your token once an exchange has been completed.

Minimum Purchase. This is the minimum amount users can buy using your pool. Setting it depends on your needs.

Once you’re finished with setting your parameters, you should click on approve and your pool should be up and running.

The tokens you’re offering will be part of a smart contract and when a user purchases from your pool, you’ll receive your tokens directly on your specified wallet.

Example of the pool

Let’s say I’d like to create a pool and provide HASH tokens while receiving USDT. Here is an example of how I would go at creating a pool allowing exchanges between USDT and HASH token:

Exchange token address: 0xeb1112ac78d537853150e2a07e8b765e29d3f019 ← This would be HASH token’s address

Receiving Token Address: 0x377533d0e68a22cf180205e9c9ed980f74bc5050 ← This would be USDT’s token address

Decimals: 18 ← Leaving this as the default value

Amount: 10000 ← In this example, I’ll be providing 10000 HASH tokens

Token Exchange Rate: 0.20 ← Currently HASH token is valued at 0.18 USD. I would like to make a profit so I’m selling HASH tokens slightly above market value.

Receiving token address: Input your own address, though it’ll automatically set your Metamask wallet address by default

Minimum Purchase: 1000 ← I would like the minimum purchase amount to be 1000 HASH tokens, so that is what I have set.