Let’s get into Defi!
In this guide, we will give you an overview of:
- The terminology of DeFi
- Swapping from $NEAR to $marmaj
- Adding liquidity to the $stNEAR x $marmaj pool
- Staking liquidity shares in the $marmaj <> $stNEAR farm
First things first, here is a little explanation of commonly used terms:
- ref.finance: An AMM/DEX (decentralized exchange or automated market maker); a place for you to exchange tokens on the NEAR blockchain; for more info and guides from ref.finance have a look here.
- metapool: A liquid staking platform where users can deposit NEAR and mint stNEAR.
- $marmaj: token of the MarmaJ DAO to support the community.
- stNEAR: “staked NEAR”; when staking N in Metapool, you will receive the same amount in stNEAR; those can be used on ref.finance. Advantage: receive rewards for your N in Metapool while simultaneously receiving rewards on ref.finance for your used stNEAR.
- wNEAR: “wrapped NEAR”. In order for N to be used to interact with other Fungible tokens on ref.finance, it needs to be “wrapped”. The value of wNEAR and NEAR is equal. It is no longer needed to hold wNEAR to swap for $marmaj tokens. If you hold some wNEAR in your wallet, you can swap it to NEAR.
- (Liquidity) Pool: Pools of tokens that are locked in a smart contract. Anyone can participate by adding tokens to a pool.
- Farm: Liquidity pool that has additional incentives (in addition to pool fees).
- Yield farming: Staking or locking up cryptocurrencies in return for rewards.
Swapping NEAR To $marmaj On Ref.Finance
You can get $marmaj tokens by interacting with the MarmaJ community, writing a post or a short story, submitting a proposal or participating in bounties or the Cryptohero games. If you would like to get to know more about the MarmaJ Community and how to get involved, feel free to join our Discord channel.
In case you would simply like to get some $marmaj for the N you already have, use the following steps:
1. Log in to ref.finance on the top right corner with your NEAR wallet (choose NEAR wallet, not Senderwallet or any of the other options).
2. Connect and approve.
3. Now your wallet is connected and you can use the ref.finance platform. On the top left corner you can see the “Swap” area. Click on it.
4. Make sure your second coin (the one the NEAR will be swapped to) is $marmaj. You can change the coins by clicking on the arrow next to the coin’s name. If the name of the desired coin does not show up immediately, you can also type in the name to find it.
5. Swap the desired amount of NEAR. In our case we will swap 1.1 NEAR for $marmaj. When entering the desired NEAR amount, you can see the amount of $marmaj tokens that you will receive. Click on “swap”.
6. You will be redirected to your wallet, so approve the transaction by clicking “approve”. You can then see how your balance of the coins in your wallet changed and you received $marmaj.
Adding Liquidity To A Pool
In order to put your tokens in a pool, you always need to have the same USD/$ value in both tokens. As we will be using stNEAR (staked NEAR) x $marmaj pool, we will need 50/50 each. So we will swap some $marmaj for stNEAR now in order to have both tokens available.
1. Use the “swap” button like in the previous step and pick the tokens for the swap.
2. You can see the USD/$ value on the right side next to the token amount. Once the value is the same, click on swap and approve on the page that redirects you to your wallet.
Time to add it to the Pool:
1. Open the stNEAR – $marmaj pool and add the pool to your watchlist so you don’t need to look for it next time. Then click on “add liquidity”.
2. Click on “max” next to the token amount and “add liquidity”. You can see that in our case the Balance is not exactly even ( 1.59 $mmj vs. 1 stNEAR). In our case the liquidity can therefore only be added if we add the max. of stNEAR tokens, as otherwise we would not be able to offer an even amount for the shares. ( Before submitting you can try to click on each of the “max.” fields and see how the numbers adjust. If you have an uneven balance, you will receive a notification stating that the value of one of the tokens is not enough.)
3. Approve the transaction in your wallet.
4. You can now see the total amount of shares that you have in this pool.
5. Click on the green “Farms” symbol on top of your shares and then click on “stake” to add your shares.
6. Choose the “max” and then “stake”.
7. Approve one last time in your wallet.
8. Now your shares are staked. Over time you will see the rewards which then you can claim. You can also unstake again or add more shares if you would like to convert more coins into stNEAR x $marmaj.
Happy farming!
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the Marma J Foundation. This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified financial advisor or other professional before making any financial decisions. The Marma J Foundation is not responsible for any actions taken based on the information provided in this article.