Liquidity providers on Dexlyn now have a new way to earn rewards-LP staking. If you’re already providing liquidity or considering it, this guide will walk you through how LP staking works on Dexlyn, how rewards are structured, and what to expect.
What Is LP Staking?
LP staking is an additional earning opportunity for liquidity providers. When you add liquidity to Dexlyn’s SUPRA-dexUSDC pool, you receive LP tokens. Instead of just holding these tokens and earning a share of trading fees, you can now stake them in dedicated LP staking pools to earn extra rewards.
How LP Staking Works on Dexlyn
Dexlyn’s LP staking follows a structured approach with three staking pools. Each pool has a fixed duration, specific limits, and varying APY. Here’s a breakdown of how the system works:
Three Pools with Fixed Durations
- Each staking pool runs for three months from the time the first user deposits into it.
- Once a pool reaches its maximum capacity, a new one opens.
- This creates a structured staking system, where users can participate in different pools based on availability.
Pool Activation and Sequence
- A pool starts when the first user deposits LP tokens into it.
- Once the first pool reaches its limit, the second pool opens.
- The third pool opens only after the second one is full.
- This staggered approach helps maintain balance and reward distribution across different time periods.
Different APYs and Limits
- Each staking pool offers a unique APY (Annual Percentage Yield) and a fixed staking limit.
- Pool 1: 4M LP max limit – 30% APY
- Pool 2: 5M LP max limit – 24% APY
- Pool 3: 6M LP max limit – 18% APY
- Users who enter earlier pools may get different rates compared to later ones.
- APYs are designed to be competitive and reflective of the pool size and duration.
Daily Rewards Calculation
- Rewards are calculated on a daily basis based on your share in the pool.
- The more LP tokens you stake, the higher your reward share.
- This ensures a fair distribution where rewards are proportional to contributions.
Rewards Updated Every 24 Hours
- Your reward balance gets updated every 24 hours.
- You can monitor your earnings in real-time through the Dexlyn dashboard.
- Once the staking period ends, you can claim your rewards along with your original LP tokens.
Why LP Staking Matters
For liquidity providers, LP staking offers an additional layer of rewards beyond trading fees. It’s a way to maximize earnings while keeping liquidity locked in the ecosystem. The structured pool system also ensures that rewards are distributed fairly, and new pools open progressively based on demand.
What Happens at the End of the Staking Period?
- When a pool reaches the three-month duration, stakers can withdraw their LP tokens along with the rewards they’ve accumulated.
- If you wish to continue staking, you can join a new pool if it’s available.
How to Get Started with LP Staking on Dexlyn
If you’re ready to stake your LP tokens, here’s how to do it:
- Add Liquidity to the SUPRA-dexUSDC Pool – First, you need LP tokens. You can get them by adding liquidity to the SUPRA-dexUSDC pool on Dexlyn.
- Choose a Staking Pool – Check the available pools and their APY and limits.
- Stake Your LP Tokens – Deposit your LP tokens into an active pool.
- Monitor Your Rewards – Rewards update daily, and you can track them in your Dexlyn dashboard.
- Withdraw After Three Months – Once the pool duration ends, claim your rewards and staked LP tokens.
- Reward Claiming Period – Rewards can be claimed 24 hours after the staking period ends. This ensures that final calculations and distributions are accurately processed before withdrawals are enabled.
Important: LP Staking on Dexlyn is only available for liquidity providers in the $SUPRA-$dexUSDC pool. Ensure your LP tokens are from this specific pool before attempting to stake, as LPs from other pools are not eligible.
How to Add LP Tokens to Your Starkey Wallet
When you stake LP tokens on Dexlyn, you may need to add them to Starkey Wallet to track your holdings. The process is similar to adding other tokens, with the key difference being that you will need the LP contract address.
Step 1: Get the Required Tokens ($SUPRA & dexUSDC)
Before you can provide liquidity, you need to have both assets that make up the liquidity pool.
- Swap or acquire dexUSDC and $SUPRA on Dexlyn or through your preferred method.
- Ensure your wallet is connected to Supra Network on Starkey Wallet.
Step 2: Deposit Liquidity into the SUPRA-dexUSDC Pool
Once you have both tokens, you can provide liquidity to earn LP tokens.
- Go to the Liquidity Section on Dexlyn.
- Select the SUPRA-dexUSDC pool.
- Enter the amount of SUPRA and dexUSDC you want to provide.
- Click “Deposit” and approve the transaction in your Starkey Wallet.
- Once confirmed, you will receive LP tokens in your wallet.
Step 3: Add LP Tokens to Your Starkey Wallet
By default, LP tokens may not be visible in your wallet. You need to add them using the LP contract address.
1: Open Starkey Wallet
- Ensure your Starkey Wallet is connected to Mainnet (not Testnet).
2: Open Token Management
- Click on the Pencil icon beside the search bar.
3: Add Custom Tokens
- Navigate to Manage Token and click the + icon to add a custom token.
4: Select the Correct Network
- Click the dropdown menu and select Supra Network
5: Enter the LP Contract Address
- Copy the LP contract address from Dexlyn’s staking dashboard or liquidity page.
You can find it here as well:0x22a28a1b5264935d4778d542b1e84bca8879cf78f6183e1a9429b56a40a1a7c4::lp_coin::LP<0x1::supra_coin::SupraCoin, 0x8f7d16ade319b0fce368ca6cdb98589c4527ce7f5b51e544a9e68e719934458b::hyper_coin::DexlynUSDC, 0xdc694898dff98a1b0447e0992d0413e123ea80da1021d464a4fbaf0265870d8::curves::Uncorrelated>
- Paste it into the Network Address field in Starkey Wallet.
6: Confirm and Add LP Tokens
- Click Add Token or Confirm to finalize the process.
- Your LP tokens will now be visible in your Starkey Wallet.
This allows you to track your staked LP tokens directly in your wallet and monitor rewards efficiently.
Things to Keep in Mind
- Only LPs from the SUPRA-dexUSDC pool are eligible for staking.
- Once staked, LP tokens are locked for three months. You cannot withdraw them early.
- APYs vary between pools. Check the available rates before committing.
- Rewards update daily, but final claims happen at the end of the staking period.
Final Thoughts
LP staking on Dexlyn provides liquidity providers with an additional way to earn while supporting the ecosystem. The structured pool system ensures fair distribution of rewards and allows users to enter staking at different stages. If you’re already providing liquidity, staking your LP tokens is an easy way to make the most out of your participation.
Get started with LP staking on Dexlyn today and put your liquidity to work!