How to use Honeyswap to Provide Liquidity | HNY xDai Pool Rewards
Welcome to this crypto video and quick blog post about 1Hive's Honeyswap decentralized exchange. With Ethereum network getting clogged and having transaction fees in the $5 to $20 range, many people and dapplications are looking for alternatives.
One such alternative is the xDai chain which can be used with 1Hive's Honeyswap. The xDai chain is appealing because it is still using the Ethereum blockchain as a sidechain/sister chain. Opposed to a blockchain such as Tron which is a separate crypto blockchain all together.
Transacting and swapping on the xDai chain is a considerable amount cheaper and faster then the Main Ethereum network.
We will start at the stage as if you already have a metamask wallet and some Ethereum in it.
Steps to use xDai chain, xDai bridge, and 1Hives Honeyswap platform
Connect your wallet to the Ethereum sidechain/sisterchain - the xDai Network
- Click the circle on Metamak
- Click add Network
- Add these 4 details in the respective boxes:
If you do not do this then you may see this error "Wrong Network" when trying to use Honeyswap. If you get this and you are looking at how to fix the error then you simply need to connect to the xDai network using the steps above.
Buy Dai on Ethereum chain and convert to xDai on xDai chain
- Buy Dai on Uniswap
- Switch back to the Eth Network in your Metamask wallet
- Convert Ethereum to Dai using Uniswap or another exchange.
- Transfer your Dai on the Ethereum Network to xDai on the xDai Network. You need to use a bridge to do this. You can use this bridge here: https://dai-bridge.poa.network/).
Make sure you are using the Ethereum network in Metamask to send. Like wise if you were trying to send xDai back into Dai you would be using the xDai network to send back. Be a bit patient here as it takes a few minutes for your xDai to appear in your wallet.
If you have xDai shown on the left (as per the screen below) then you are using the xDai network in Metamask and need to switch back.
Add liquidity to a pool (we will add to the xDai / HNY pool)
There are many pairs that you can add to. You can see them and their details here https://info.honeyswap.org/pairs.
- Switch to xDai Network in your Metamask wallet
- Buy Honey (HNY) on honeyswap. The pool is about 50/50 xDai and HNY so consider this before choosing how much to swap. (be sure to leave atleast 1 xDai in your wallet as it is used for gas fees similar to how Eth is used for gas fees on Ethereum. https://info.honeyswap.org/token/0x71850b7e9ee3f13ab46d67167341e4bdc905eef9
- Add to the HNY xDai pair
- Click on pool > Add Liquidity
- Choose both xDai and HNY as a pair
- Confirm and pay for the transactions. Be sure to also click 'Supply' after the swap is 'Approved' to put your pair in the pool to provide liquidity. After you should see something like this showing you your pool allocations.
Great! now you are providing liquidity to the HNY xDai pair on 1Hives Honeyswap. You may be wondering what you get for doing this? For example on Uniswap you get UNI tokens for staking your digital assets. Likewise on Honeyswap you get rewarded for providing liquidity.
How do you get and claim your rewards? How do you know what token the rewards are being paid out in and at what weekly rate or APY? Where are the rewards displayed on the Honeyswap site?