Avocado has launched its first liquidity pool into which you can use your AVG tokens to provide liquidity. This is conducted through what is known as an automated market maker (AMM), for which we have chosen PancakeSwap (trading pair AVG:BNB) which is the largest decentralized exchange on the BNB Chain. By providing liquidity in AVG:BNB to Pancake Swap you are supporting Avocado’s growth. For a more general understanding of AMMs and providing liquidity, you can read Pancake Swap’s own guide here or a good article by Coindesk.
To get started, you will first need to have both AVG and BNB tokens (in approximately equivalent USD value) to provide liquidity on PancakeSwap as the liquidity pool requires initial liquidity in each token of the pair. You will also need to make sure you have sufficient BNB available for gas fees (approximately 0.001 BNB).
Step 1: Go to PancakeSwap to provide liquidity by selecting this link
This link takes you directly into the screen where you can liquidity to AVG:BNB.
It important that you follow that precise link to ensure that you are adding liquidity to the correct pool as opposed to others which may fraudulently present themselves as AVG
As a reminder, AVG token contract address is identical across Ethereum and BNB Chain and is: 0xa41F142b6eb2b164f8164CAE0716892Ce02f311f
Step 2: Enter the amount of liquidity you wish to provide
Choose the amount of liquidity you wish to add. On your first liquidity provision for AVG, you may be asked to enable AVG tokens for LP provision. When you provide liquidity via PancakeSwap, the token pairs are provided with similar total value locked. For example, if the value of liquidity offered through AVG is around US$10, then around US$10 of BNB will need to be added as liquidity as well.
After clicking “Supply”, you will be directed to a supply confirmation screen where you will be able to see the number of BNB/AVG LP tokens. In this example, we find that 100 AVG corresponds to 1.83606 BNB/AVG LP tokens. There are a variety of uses for LP tokens — one of which is to stake them with Avocado to earn AVG rewards.
Step 3 — Confirm and begin staking
Once you have clicked ‘Confirm Supply’, you will be able to view your LP tokens in your wallet, giving you further options to earn with your AVG tokens. For example, Avocado also allows you to stake your LP tokens, and rewards you for the equivalent value locked in the liquidity pool.
We are delighted that we can now offer our community several staking programs to fit different investment strategies. We will continue to innovate our staking options to ensure that our token holders benefit from our staking pools.
For more details on staking, you can read our How-to (LP) stake guide