3.4 Earn
Earning with Omura is simple. This mechanism is for users who wish to contribute to the liquidity of FPT/ADA pairs and, by extension, receive rewards for their contribution.
How to Earn
Users may earn by staking their tokens in FPT-ADA liquidity pools. By depositing FPTs and ADA into these pools, users are providing the necessary liquidity for seamless token swaps on the platform’s DEX. In return liquidity providers (LPs) earn a share of the transaction fees generated from trades executed within their respective pools.
The process of earning on Omura is straightforward: a user selects an FPT-ADA pair, contributes an equivalent value of both tokens to the pool, and in doing so, receives LP tokens. These LP tokens represent the user’s share of the pool and entitle the holder to a proportionate share of the pool's transaction fees.
We are currently developing additional reward systems such as XP and Yield farming to further raise APR's on your holdings.
Universal NFT Staking
Whilst many projects have developed internal staking mechanisms, large NFT portfolios may be missing out on yield simply by missing these announcements. Omura offers a 'one-stop-shop' approach for earning on any asset. To start earning, provide liquidity with FPT/ADA pairs. Your yield will depend on the volume of transactions made through a project's pool.
Earnings and Rewards
The earnings accrued from liquidity provision are directly proportional to the amount of liquidity one provides relative to the pool's total liquidity. The more a user contributes, the larger their share of the pool's fees. These rewards are distributed in ADA and can be claimed on withdrawal of your liquidity position.
Considerations for Liquidity Providers
Understanding the Risks: While providing liquidity can be lucrative, it also entails risks such as impermanent loss, especially in volatile market conditions. Users should assess their risk tolerance and market conditions before committing assets to a liquidity pool.
Pool Selection: Users should choose pools based on their market insight, the stability of the FPT and ADA values, and the overall liquidity of the pool. Higher liquidity usually means less price slippage and lower risk of impermanent loss.
Checking your Local Laws: Omura allows liquidity providers to unstake their assets at any time. However, users should be mindful of any tax implications receiving earnings on crypto assets may have in your local jurisdiction.
Community Contribution: By providing liquidity, users are not only earning rewards but also contributing to the overall health and efficiency of the Omura ecosystem. This collaborative approach enhances the platform’s liquidity and trading experience for all users.
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