As alluded to in a previous post, you can now help support the HUE economy by becoming a HUE liquidity provider through the DeFiZap General Unipool. This allows you to earn a share of the 0.3% swapping commission. This post will take you through the simple steps required to participate.
Prerequisites: An Ethereum wallet funded with any of the following tokens: ETH, DAI, sETH, SNX, MKR, KNC or LINK
To start, we will be using the DeFiZap website. This site simplifies the process of allocating funds across many different DeFi protocols through smart contracts called Zaps. Since we are interested in the Uniswap HUE liquidity pool, we will be focusing on the “General Unipool" Zap.
First, visit DeFiZap.
Next, click on the red “Connect Wallet” button in the upper right corner of the page.
The site will then display the following:
Select the type of wallet you wish to use. For this example, I used MetaMask. Once you have connected your wallet, the website will show a green icon with your wallet address and ETH balance in the top right where the “Connect Wallet” button was previously displayed:
You are now ready to start a transaction. Find the “General Unipool Zap” and scroll down until you see the “Zap In” button:
Click the "Zap In" button and the following window will appear:
In the “Search For Token” field, type “HUE” and choose an “INPUT” token.
In the example below, I have chosen ETH. Under “Enter ETH Amount” enter the amount of the chosen token you wish to allocate. In this example I use 0.01 ETH as a small amount to illustrate the process.
Note: If you have selected another token, say DAI, then the field will display “Enter DAI Amount,” to match the selected token.
You may wish to adjust the transaction speed and therefore the gas fees payable, but in this example, I have left it on the “Average” default:
That’s it. All that is left is to press the “Zap In” button, sign the transaction with your wallet and wait for the transaction to be confirmed. Once confirmed, click the “Close” button.
Congratulations, you have now provided HUE liquidity! 🥳
Note: By using DeFiZap you will receive the same pool tokens as you would when using Uniswap directly; DeFiZap has just simplified the process.
This next section will walk you through reversing the process if you wish to remove HUE liquidity.
Navigate to the main DeFiZap page, connect your wallet and locate the “General Unipool” Zap as you previously did in the Providing Liquidity section above. Scroll down until you see the “Zap Out” button.
Click the “Zap Out” button and a new window will appear. Enter “HUE” in the “Search For Token” field.
This will check your wallet to see how much HUE liquidity you are providing. The balance will be displayed on a new screen:
Note: Notice that even though I originally provided 0.01 ETH, the balance here shows 0.0052. This is because my funds were split between ETH and HUE in Uniswap with a weighting of 50.2% ETH to 49.8% HUE.
Decide the amount of liquidity you wish to withdraw and which token you wish to receive back. If you only wish to reduce your HUE liquidity you can either enter a withdrawal amount, or use the green slider to set the amount you wish to withdraw for a value less than the maximum.
I have chosen the “Withdraw Maximum” to close my position, and ETH as the token I wish to be returned.
As you can see in the image above, I shall be returned 0.0099 ETH, which is less than my original input. This is due to the fact that I have not left the tokens in for long enough to make any commission. You’ll need to consider gas fees, convenience fees and duration when considering providing liquidity yourself.
As with providing liquidity, you may wish to adjust the transaction speed. In this example, I stuck with the default.
Next, click the “Zap Out” button.
Once your transaction has been confirmed, you will be shown this screen:
This confirms that you are no longer providing HUE liquidity. You can now click the “Close” button.
Congratulations, you have now mastered how to add and remove HUE liquidity using the DeFiZap General Unipool!!