Introducing Zap: 1-Click LP Token Generation and Withdrawal at Your Fingertips
StellaSwap is proud to announce the first Zap feature on Moonbeam, allowing users to stake and yield farm in just 1-click! This monumental launch would make it much easier for anyone to start yield farming, all in 1-click!
What is the Problem Zap Solves?
Let’s face it, one of the pain points in DeFi yield farming is the cumbersome process of staking your coins in liquidity pools to start generating those delicious yields. In DeFi, one of the most common ways to start earning returns is providing liquidity to the protocol in exchange for rewards. This means that you can use stake your coins into liquidity pools — called ‘Farms — and be rewarded by the protocol.
In order to start generating yields, you have to perform the following manual steps:
Step 1: Farm Selection
Select the Farms that you’re interested in. If you’re interested in the STELLA-USDC pool that is earning 900% APR, you must ensure that you hold $STELLA tokens and $USDC tokens at parity, meaning equal value of those tokens at a 50/50 ratio.
Step 2: Possess Two Underlying Tokens of the Your Selected Farm
If you’re keen on staking $10,000 worth of your assets in STELLA-USDC farm on StellaSwap, you need to have $5,000 worth of $STELLA and $5,000 worth of USDC. If you don’t, swap your existing assets to get both underlying tokens at a 50/50 value ratio.
Step 3: Generate LP Token By Pooling Liquidity
After having the same value of $STELLA and $USDC, you need to stake both assets to the STELLA-USDC liquidity pool (LP) on the Pool section. This means that you will start providing liquidity to the LP and in return, you will get STELLA-USDC LP token, which signifies your share of the LP relative to the entire STELLA-USDC liquidity. You will be rewarded according to the share of the liquidity you provided relative to everyone’s cumulative liquidity.
Step 4: Stake Your STELLA-USDC LP Token into Farm
Finally, after all that is done, you still need to stake your LP token into the STELLA-USDC farm, to start earning the juicy yields.
Now, that is a cumbersome process that is also complex to a new person interested in DeFi. You’re wasting precious minutes of your life and paying gas fees across all these steps that is frankly, unnecessary. Imagine a way to streamline the entire process by allowing you to start yield farming in less than a minute with no hassle and with as little steps as possible? What if you only had USDC and want to start yield farming without going through all those cumbersome process, wouldn’t that be awesome?
Introducing Zap: 1-Click LP Token Generation & Withdrawal at Your Fingertips
Well, now you can. Imagine only having USDC in your wallet and you want to start yield farming on the STELLA-USDC farm. All you have to do is go to StellaSwap’s Zap page and “ZAP” your USDC automatically into the STELLA-USDC LP token in a blink!
Here’s a TLDR of what makes our ZAP feature unique:
☑️ Convert your single token (USDC or GLMR at V1) directly into an LP token of your choice in one-click, without needing to manually get the underlying tokens, pooling them and then generating LP token. Hence, “ZAP!”
☑️ We’re the first 💸 in the DeFi space to have an in-built calculator for LP token generation through ZAP, so that you’ll know approximately how many LP tokens you’ll be getting even before you confirm the transaction!
☑️ Save gas fees and time when your “ZAP” your single-asset tokens!
☑️ V2 (future launch) will allow you to “ZAP” a wider variety of single-asset tokens into more LP token variety, even if the LP pool doesn’t have your single-asset tokens as the underlying!
In summary, we have made life easier so you do not have to:
❎ Swap your USDC into the underlying tokens
❎ Pool liquidity and generate the LP token need to stake into the farm
❎ Waste gas fees (in GLMR) in numerous transactions
StellaSwap’s ZAP feature will automate the process! By converting your USDC > STELLA-USDC LP token, all that’s left for you to do is to stake the LP token into the STELLA-USDC farm. You save time, money and skip all the complexities associated with yield farming. This is especially helpful if you’re new to the space.
How Can I Start Using Zap?
We’ve broken down the development of our ZAP feature into 2 phases: V1 and V2.
V1: Single-Asset Conversion to LP Token with the Same Underlying
Users that have USDC and wants to generate an LP token for yield farming can do so only on farms with USDC as one of the underlying coins.
This means that if you have USDC in your wallet, you can use ZAP to automatically convert to any LP token with a corresponding USDC pair, such as STELLA-USDC LP, GLMR-USDC LP, BNB-USDC.
You will not be able to convert your USDC into LP farms that does not contain USDC in its pair, such as STELLA-GLMR. We will continue to extend the number of supported single-assets that can be used for ZAP.
Here’s the full list of supported single-asset coin that you can zap in or zap out at the start (V1 Launch):
V2: Single-Asset Conversion to Any LP Token
Down the line, users would be able to convert their single asset, into any LP token, even if there is no corresponding asset within the LP pair. For instance, you can use your USDC to ‘ZAP’ into the BNB-GLMR easily. This affords total flexibility and autonomy in selecting whatever LP tokens they’re interested in getting, without the limitations of their single-asset. This requires heavy development in terms of routing an efficient methodology to convert the single-asset tokens into various LP tokens.
Don’t Forget to Stake Your Newly-Zapped LP Tokens into Farms to Start Earning STELLA!
It is important to take note that you can only start generating yields when you’ve staked your newly generated LP token from the ZAP feature directly into the Farms page. For example, if you’ve zapped USDC > USDC-STELLA LP , then you need to stake or deposit your USDC-STELLA LP token into the USDC-STELLA farm on the Farms page. Here’s a guide to stake your LP token into your intended farm.
StellaSwap is the first and leading Moonbeam DEX that offers an integrated gateway to the DeFi world. Users can swap, earn, yield farm, bridge assets, explore new projects and engage in NFT trading all from a single unified platform. StellaSwap’s products are structured in such a way that facilitates decentralized governance of STELLA holders, while continuing to innovate on the collective foundations by design.