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$DEGEN LP Guide 1/ saw a lot of people asking how to LP so here is a quick and dirty guide to setting up your first LP position: I’m not an expert, nfa, dyor, etc.

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2/ why LP for DEGEN/ETH? liquidity mining: every day 20M $DEGEN tokens are given out to the LPs of the DEGEN/ETH pair based on their share of the liquidity provided (https://www.degen.tips/liquidity-mining). this ends on July 8, 2024.

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3/ to be able to LP you need both assets of the pair (DEGEN/ETH): - you can bridge L1 ETH to L2 Base ETH here: https://bridge.base.org/deposit - you can buy DEGEN on uniswap by changing the chain to Base L2 (default is Ethereum) and pasting in this address: 0x4ed4e862860bed51a9570b96d89af5e1b0efefed

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4/ finding the pool - go to the Uniswap V3 pool link on https://www.degen.tips/liquidity-mining - change the chain to Base L2 (default is Ethereum) - now you should see this screen:

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5/ adding liquidity - keep the fee tier set to 0.30% - you will only earn rewards as long as the price is within your price range - decide how much you want to allocate to the pool

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6/ liquidity ratio - your liquidity ratio within the pool is determined by the value of DEGEN and ETH, you might get a different split back compared to what you started with.

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7/ when does LPing make economic sense? - taking into account LVR (loss vs rebalancing) or IL (impermanent loss) it might be more profitable to just hold $DEGEN vs being an LP (more volatility means higher LVR cost for LPs). - the difference maker here is that the liquidity mining incentives can offset potential LVR

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If you want to go down the LVR rabbit hole I recommend this lecture: https://www.youtube.com/watch?v=q5vyJJb-Uyw

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Alex Bruno pfp

How often do you claim fees?

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veekay pfp

woooo i became an LP literally minutes before this thread haha! great one, thanks for sharing!

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bigjaymes.eth 🎩 pfp

bigjaymes.eth 🎩

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Trish🫧 pfp

2000 $degen I’ve been looking everywhere for this. Thank you so much

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