Cover photo

Mozaic Guides

Using the Stargate V2 Bridge & Depositing Liquidity in Aerodrome Finance

Bridging tokens via the Stargate V2 Bridge is a seamless process that allows you to move assets across different blockchain networks with ease.

In this guide, we will walk you through the steps needed to connect your wallet, bridge your MOZ tokens, and deposit liquidity into Aerodrome Finance. Whether you're new to decentralized finance or looking to optimize your cross-chain transactions, this guide has got you covered. 

Bridging (Stargate Bridge)

  1. Go to Stargate V2 Bridge Website: Open your browser and navigate to the Stargate V2 bridge platform.

2. Connect Wallet: Click on the "Connect Wallet" button and choose your preferred wallet (e.g., MetaMask).

 

Bridge Your Tokens

1. Select Source, Destination Chain & Token: Kindly select the Source Chain as Arbitrum, search for "MOZ" token in the select token dropdown list, and set the destination chain as Base.

2. Enter Amount & Approve Transaction : Specify the amount of tokens you want to bridge. After specifying the amount of tokens you want to bridge, the next step involves approving token spending caps from your total token balance. Your approval signature only allows the smart contract to spend token balances to the approved transaction limits.

As a recommended security practice, please avoid unlimited token balance approvals in Metamask or other smart contract wallet provide to ensure that any accidental or unauthorized wallet signatures do not allow a rogue actor to transfer tokens from your wallet without your permission.

3. Confirm Transaction: Confirm the transaction in your wallet and wait for the bridging process to complete. You will receive a confirmation once the tokens have been successfully bridged. In the meanwhile, you can monitor the transaction completion status & time to completion by turning on the tracker "On Navigation tab" in the transactions drop down list on the right.

Depositing Liquidity (Aerodrome Finance)

This guide allows you to deposit liquidity in Mozaic Finance liquidity pool on Base Network & earn AERO incentives every week on Aerodrome Finance.

1. Navigate to Aerodrome Finance: Open your browser and go to the Aerodrome Finance platform.

2. Connect Wallet: Click on "Connect Wallet" and select your wallet (e.g. MetaMask).

3. Select Pool: Visit the "Liquidity" tab on Aerodrome Finance and search for official Mozaic DAO-owned liquidity pool address (i.e. 0xa32ecde2c559c462610ed35740cc2b9642133c9b) on Base. This is will ensure that you are selecting the correct designated liquidity pool for your deposits & earn commensurate incentives in AERO emissions.

4. Deposit Tokens: Enter the amount of MOZ tokens you wish to deposit into the selected pool.

5. Approve Deposit: Confirm the transaction in your wallet to approve the deposit.

  1. Staking Liquidity : To earn protocol incentives as AERO emissions, it also requires a user to stake their liquidity pool (LP) tokens with Aerodrome Finance. Approve and stake your LP token (vAMM WETH-MOZ LP token) to earn protocol incentives, in addition to liquidity rewards such as trading fees.

  1. Earn AERO Emissions: Once the deposit is successful, you will start earning AERO emissions based on your contribution to the liquidity pool, as evidenced below. The staked position will also accumulate trading fees starting from next 1 or 2 epochs.

Key Considerations & Basic Knowledge Concepts:

Aerodrome Finance (AERO) is a next-gen AMM that provides the BASE ecosystem with deep liquidity and farming pool options. Aerodrome offers two types of LPs (Volatile and Stable) & liquidity range setups (Basic & Concentrated) for their pools.

  • Stable Pools: sAMM pools are ideal for those who want to minimize impermanent loss & maintain a stable value. Assets such as wrapped ETH (wETH) & ETH, or USD denominated assets such as USDC/DAI/USDT have near identical values & price fluctuations are quite minimal.

  • Volatility Pools: vAMM liquidity positions are volatile liquidity pools designed for traders who want to take advantage of price fluctuations & earn trading fees, and as such users can be subjected to impermanent loss.

  • Basic Pools are UniswapV2 style liquidity pools where both tokens deposited in the liquidity pool in equal proportion, and price limits are set between 0 to infinity.

  • Slipstream Pools are UniswapV3 style concentrated liquidity pools that allow for higher capital efficiency by allowing liquidity providers (LPs) to set price range within which they want to add liquidity, add single/dual sided liquidity with different weightage proportions & set limit orders. Slipstream pools are ideal for low volatility, high volume trading pairs.

The Protocol Owned Liquidity (POL) for Mozaic Finance is a basic-volatile liquidity pool (vAMM WETH-MOZ) incentivised with weekly AERO emissions redirected by veAERO lockers every week.

Liquidity provisioning for POL requires users to deposit equal proportions of MOZ & ETH liquidity within the pool, understand the benefits (i.e., trading fees, incentives) and associated risks (impermanent loss). Mozaic Finance has also incentivised 600k MOZ as liquidity bribes for veAERO lockers to redirect AERO incentives to protocol owned liquidity pool.

Disclosure: This article does not represent investment advice. The content & materials featured on this page are for educational purposes only. Please do your own due diligence when using third party front-ends & software services.

Loading...
highlight
Collect this post to permanently own it.
Mozaic logo
Subscribe to Mozaic and never miss a post.
#bridging#liquidity pool#stargate#finance#cryptocurrency#mozaic