How to earn PASSIVELY with MUTE
I’m plugged in with MUTE. I mean; it’s literally the most impressive cryptocurrency project currently, not just for me, you’d say the same when you do your research. I’ve been stacking some MUTE and VOICE lately – the two tokens powering the Mute ecosystem. While Mute token gives you a share of mute’s ecosystem, Voice gives you a share of Mute’s governance and the economy as well. Well, I’m not about to lecture you on these tokens…at least not for now.
Regardless of what keeps you attracted to cryptocurrency as a concept, only very few people will reject an opportunity to make some extra bucks while they take a nap. I’m with the crowd this time around, lol. An average defi enthusiast is probably participating in at least four farms. An extra stream of income is never a bad idea; when this is completely painless, only a few things feel better!
Now if you aren’t one of the very few that would turn down a passive income opportunity (if you clicked this article to read then you certainly aren’t!), then here’s one you wouldn’t want to miss out on.
Mute offers passive rewards of up to 70% Annual Percentage Yield to liquidity providers on the MUTE-ETH liquidity pool. Alright, here’s the simple detail; to start earning yourself some Mute token without breaking a sweat, you need only two things: your Uniswap MUTE-ETH Liquidity pool token in your wallet and probably a (good) internet connection.
In case you’re not conversant with liquidity pools on decentralized exchanges; it is a collection of tokens (in a trading pair) locked in a smart contract which provides buyers and sellers an avenue to make purchases or sales. Trading on decentralized exchanges which use this technique, you’re simply taking one token from the liquidity pool and adding the other. For instance; to buy Mute from Uniswap with Ethereum, a buyer adds Ethereum to the liquidity pool in exchange for Mute token.
Liquidity providers contribute the tokens in the liquidity pool, this constitutes the Automated Market Maker. To provide liquidity, one simply needs to add an equal value of both tokens to the liquidity pool. The liquidity provider gets liquidity pool tokens –a cryptographic representation of the percentage of the liquidity pool owned by the Liquidity provider.
To incentivize liquidity providers for the MUTE-ETH pair on Uniswap and build a strong liquidity, Mute is offering juicy passive rewards for providers who stake their liquidity pool tokens on Mute’s staking portal – Dock. The procedure is pretty simplified; first provide liquidity for the Mute-ETH pair, then head over to the Dock on Mute’s official website and stake your Mute-Eth Liquidity pool token.
Alright; I’ll take you through the process…
- To provide liquidity, you need at least an equal value of Ethereum and Mute token in your personal wallet (and a little more for transaction fees). If you already have both tokens in your wallet, proceed to the next step, else you can simply purchase Mute from Uniswap.
- Join the Uniswap (V2) Mute-Eth liquidity pool and Provide liquidity to receive liquidity pool token(s). To do this, visit Uniswap and connect your wallet. Or visit Uniswap Pool section; Click ‘More’ and select 'V2 liquidity' from the drop-down.
- Click the ‘Add V2 liquidity’ button. The page that pops up is a pretty simplified page which allows you select the tokens you wish to provide liquidity for. Ethereum is the placeholder token already; click the “Select a token” button to open a search for Mute. you’ll probably have to add it by typing ‘Mute’ on the input box and importing it.
- Select Mute and proceed to specify the value you wish to lock. A corresponding value of the second token is automatically selected.
- Follow the prompt to approve the Mute token and complete the liquidity provision process.
- Connect your wallet in a similar manner as [2] above.
- Your liquidity pool token details will reflect automatically. Click ‘Approve’ to approve your Lp token for use on the Mute staking platform.
- When this is done, proceed to deposit your LP token and complete the staking process.
Adding liquidity automatically qualifies you to earn from the trading fees. These earnings are automatically claimed when you remove liquidity.
To earn even more from the liquidity you have provided, visit https://mute.io/ and click on ‘staking’ from the navigation menu.
NOTEWORTHY
Reward multiplier: Mute’s staking program is designed to improve liquidity without negatively affecting the tokenomics. To ensure sustainability, reward multiplier is built over time. This means that your reward multiplier is a function of how long you leave your token staked at the dock. Longer your LP tokens are staked at the dock, the higher your multiplier get. Based on personal calculation, it would take about 60days to attain the highest multiplier value (3X). you’d have to stake your LP at the dock for at least 60days to attain a 3X multiplier value.
Claiming rewards: Some plausible practice comes in here too. To claim your earnings from the dock, you will need to first unstake your LP tokens from the dock. Tokens earned are automatically claimed once you unstake. However, your multiplier returns to the initial value whenever you restake.
Also note that ethereum transaction charges will apply where due, the value varies depending on the blockchain’s condition. Mute itself doesn’t charge any fee for this process. Transaction charges weren’t considered on the course of this guide; however, long term staking reward will be sufficient to offset the charges paid and yield good profits too.
The staking process is simple and easily understandable, however, in case of any confusion or misunderstanding, I’ll be in the comment section to attend to your questions! Enjoy your rewards!
About MUTE
Mute is harnessing the unlimited potentials of ethereum’s Layer-2 and the ZK-Rollup protocol to build a robust decentralized cryptocurrency exchange offering cheap and seamless cryptocurrency swap and core defi activities. Governed by a DAO system, Mute’s decentralized solutions are being built on a decentralized community.
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Hi @joelagbo thanks for sharing such an amazing piece do i need to buy high amount of MUTE token before i can provide liquidity and earn some extra income.
Nope, You can provide as much liquidity as you can afford. However, rewards are relative.