Steemit cryptoacademy:- season 2 week 7:- home work post for professor @sapwood

Hey there everyone this is @prakhar9675 and this post is against the homework given by professor @sapwood.

So let's answer all the asked questions by professor:-

Before answering all the questions related to liquidity pool, first we all should understand in brief what is liquidity pool.

Source

Liquidity in simple words can be described as tokens that are usually locked by a smart contract to make trading smooth and instantly.

Why do we neee liquidity pool in a exchange:-
So every exchange has liquidity pool because of order book. This order book allows user to place order quickly and sell their asset on maximum price and buy at minimum.

To make the trade happen, a seller and a buyer has to come on a same price. But many times this is not possible because for example if the price of any asset is very low and buyers want to buy at that price but no one is willing to sell.

In that case liquidity come into play. By using liquidity, anyone can sell or buy any asset at a market price even if other party isn't willing to participate.

And a exchange is generally considered good if it has high liquidity because it helps in completing order rapidly and instantly.

in decentralised exchange, liquidity is provided by many liquidity providers who add their asset to the liquidity pool and in exchange they are provided many reward that differs from exchange to exchange. These are usually called liquidity pool token or can be abbreviated as LP token.

A liquidity provider can also use these obtained LP token to stake on many platforms and can get reward in exchange.

So in this task we all will understand how to add liquidity into liquidity pool on Justswap.io and how to obtain LP tokens and how on sun.io these LP token can be used to stake and earn rewards.

How do I connect my TronLink Wallet to Sun.io?(Screenshots needed)

To connect your tron Wallet to sun.io.

1. Go to your tron Wallet and click on discover at the bottom panel.

2. Sun in the search bar search for sun.io or it may be available in popular section. click on it

3. It will show a warning that **you will be redirected to a third party DeFi app. click on enter

4. And as soon as I opened that, my tron Wallet got connected with sun.io .

5. To make sure your wallet is connected, click on two horizontal lines at the top right corner. And click on a icon beside sun.io icon

6. There you will be shown your tron Wallet address and this means your tron Wallet is connected to sun.io.

What are the different liquidity mining pools? Which one offers the highest APY? How many different rewards do I get by staking LP token? (Screenshots needed)

To see the difference liquidity pool available in sun.io.

1. Click on two horizontal lines at the top right corner.
   

2. Now click on century mining
   

3. Now under the headline liquidity mining you can see all available liquidity pools.

I have listed all of them below:-

1. USDT-TRX LP
   

2. USDJ-TRX LP
   

3. TUSD-TRX LP
   

4. SUN-TRX LP
   

5. WBTT-TRX LP
   

6. JST-TRX LP
   

7. BTC-TRX LP
   

8. ETH-TRX LP
   

9. WIN-TRX LP
   

Now the liquidity pool that offers highest APY is sun TRX LP that is 35.78 % at this time

The reward for staking LP token is given in 5 coins those are:- TRX (Tron), SUN(SUN), JST (Just), WIN (Wink)and BTT (BitTorrent).

How do I obtain LP Token by adding liquidity in Justswap? What is the quantity(Explore through your wallet/Tronscan)?(Screenshots needed)

To obtain LP token by adding liquidity in Justswap, follow the following Steps:-

1. Go to your tron Wallet, and click on discover and then click on Justswap

2. Now click on pool and then click on add liquidity

3. Now enter your amount you want to add to liquidity. I had entered 1.08 USDT ad it was maximum available. And accordingly it added the amount of TRX automatically.

4. you will be shown how much LP token you will get and other Information will also be written there.
   Now click on supply

5. Now a notification will pop up asking for your confirmation of transaction click on confirm.

6. After this, your asset will be added to liquidity pool.

To see the quantity of LP token obtained

1. Go to tron Wallet

2. Go to history section and then click on your transaction. And all details regarding this transaction will be shown there on tronscan.org.

So for adding my 14.970438 TRX and 1.089026 USDT to liquidity pool, I have received 18.080744 LP token of S USDT TRX.

How do I stake LP Token to earn five different tokens on Sun.io? (Screenshots needed)

To stake LP token on sun.io, follow the following Steps:-

1. Go to tron Wallet, and after clicking on discover search for sun.io and then click on it.

2. After this, click on two horizontal lines at the top right corner and click on century mining

3. After this, click on stake ( I mistakenly deleted the screenshot taken before staking my asset I apologise for this )

4. Now enter the amount of LP token you want to stake I am willing to stake the whole amount. So I clicked on max

5. After this, you will be asked for confirmation. Click on confirm

6. You will be shown the notification stating your deposit amount.

You can see your deposited amount on the homepage

Which reward(out of five different rewards) can be withdrawn at any time? How do claim that (indicate that in the screenshot)?

Out of five, only 33% of total Sun reward can be claimed anytime. And others are distributed in rewards that is distributed every week for a period of 24 weeks.

The remaining reward can be seen under the headline stating undisturbed reward

Now to claim your SUN reward, :-

1. Go to sun.io through your tron Wallet

2. Now go to liquidity mining section.

3. Now click on manage under the section of USDT TRX LP

4. Now click on sun claim

5. It will ask for your confirmation for transaction. Click on confirm and your reward will be deposited Into your account.

6. You can check your reward after go to history through your tron Wallet.

For example I have received a total of 0.0000000088 Sun token in reward.

What is the schedule of unlocking the mining rewards? Indicate the total undistributed/distributed mining rewards in the screenshot

As we have discussed that 33% of total Sun reward can be claimed anytime. And remaining reward that includes 67% of total Sun reward, TRX JST, BTT, WIN, and BTCST can be claimed on a weekly basis for a period of 24 weeks.

To see distributed and undisturbed reward, go to liquidity mining section and click on manage and then you will se shown your distributed and undisturbed reward

Here you can see, that total reward that is available to claim or distributed reward is 0 Sun and total undisturbed reward is listed below having worth less than 0.001 USD

Include the real example of your interaction with Justswap and Sun.io as required in this task? Indicate how a "stake"(in Sun.io) function consumes different "Energy & Bandwidth" than "obtaining LP token" (in Justswap)? You should add/remove a small amount of liquidity to obtain/redeem your LP token(as little as 1 USDT worth)

Here in this section, we will compare energy consumed and bandwidth consumption in the process of staking LP tokens and obtaining LP tokens.

...	while obtaining LP token on Justswap	while staking LP token on sun.io
Amount used	1.0892 USDT, 14.96 TRX	18.08 USDT TRX LP token
Energy consumed	60,902	89,516
Bandwidth	383	313
Burned TRX	8.526	12.53

^{transaction details of Justswap while obtaining LP token. Screenshot taken from tronscan}

^{transaction details of sun.io. screenshot taken from tronscan}

So after observing this table we can conclude that energy consumed was more when we staked LP token in sun.io which is 89,516 against 60,902

But, it requires less bandwidth to complete action as compared to obtaining LP token that is 313 against 383 while obtaining these.

How do I unstake LP token and claim mining rewards(Sun.io)?

To unstake LP token and claim mining reward, follow these steps:-

1. Go to tron Wallet and click on discover and then search for sun.io and then click on it.
   

2. After clicking on two horizontal lines and then on mining century, go to liquidity mining section and then click on manage where you have staked your tokens.
   
   

3. Now switch to claim and then fill all the column. I have chose for 100 percentage of my LP token for unstaking. And as I have already claimed my sun reward, there is nothing left. But to claim that reward you can click on claim.
   And then click on claim and unstake
   

4. Now you will be asked to confirm the transaction. Now enter your password and confirm this transaction.
   

5. After this,your unstake will be completed after some time. And you will see a notification like below stating the same. And you can also see the amount you have unstaked
   

6. You can verify this transaction by visiting the history on tron Wallet. I have verified the same transaction. Where other details including energy consumed and bandwidth used will also be visible.
   

So after this, you will complete your unstake. And you can also claim your reward if there is anything pending. In my case I have already claimed the same.

conclusion

So we can conclude in the end that, by using Justswap, any can not only swap it's asset to another but it also allows it's user to add it's asset (in pair) to liquidity pool and users can earn LP tokens against it and the amount of the obtained LP token is based on many factors such as quantity you have added to liquidity pool and other.

And user can stake those LP tokens on sun.io iniquity mining pool and in return they can earn reward for their stake.

So that's all from my side. And in the end I want to thank professor @sapwood for assigning such an interesting task. Although I hadn't completed previous task so I used much time to understand things yet still it was fun to do and I got much knowledge about staking, mining pool and many other things.

Cc
@sapwood
@fendit