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7. Provide Liquidity on Balancer & Stake BPTs
Pool tokens can also be invested into Liquidity Pools on Balancer to assist the functionality of the secondary markets for Mycelium pool tokens. Liquidity providers will receive Balancer Pool Tokens (BPTs) in exchange for their investment. BPTs earn swap fees on Balancer, and can be staked in Mycelium staking farms to earn additional MYC. Read on to learn how!
Note: Liquidity providers on Balancer are exposed to a risk known as Impermanent Loss. To learn more about Impermanent Loss you can start here.
The guide below assumes you already hold a Pool Token. If you're just getting started and don't hold a Pool Token yet, start with our guide: 'Open a Position'.
Visit Balancer's 'Invest' page, and connect your wallet to Arbitrum to see a list of the available Balancer pools on Arbitrum. Search the list to find the pool that contains the Mycelium pool token that you hold.
Input the amount of each asset you want to deposit, and select 'Preview' to view a summary of your investment. Once you're happy, select 'Invest'. In exchange for providing liquidity, you will receive Balancer Pool Tokens (BPTs) that represent your position in the pool.
Now, simply head to Mycelium's app and stake your BPTs to earn MYC rewards.
Visit Mycelium's 'Stake' page, and connect your wallet to Arbitrum to see a list of the available Mycelium staking farms.
If you have BPTs in your wallet, the 'Stake' button will be highlighted. Click the 'stake' button, and follow the prompts on your Web3 wallet to stake your position and earn MYC incentives.