Wait, what is Uniswap?
Uniswap is a decentralised exchange which allows anyone to trade between various Crypto-Currencies. The core Uniswap Smart Contracts facilitating the trades are known as liquidity pools — These pools can be created by anyone holding valid amounts of two valid tokens, and Uniswap also allows anyone to add liquidity to existing pools. Whenever you add liquidity to a pool you earn fees for any trade that is facilitated by that pool. Read a basic intro on Uniswap here: https://decrypt.co/resources/what-is-uniswap
OK, So How Can I Start Earning with 2KEY and DAI?
Here is the 2KEY homepage on Uniswap:
From this homepage, you can quickly access the 2 pools.
You can then :
- TRADE DAI-2KEY (Click the Trade button your target pair)
2. ADD LIQUIDITY and EARN FEES from each trade performed on the Uniswap pool. By adding DAI and 2KEY, you share the fees earned by the pool from each trade performed. Your earnings are proportional to the ratio between the amount of liquidity you added and the amount added by the other pool participants. For example, if your share of the pool’s liquidity is 30%, you will earn 30% of the fees collected.
How Much Fees Will I Make?
In general, 0.3% fee is taken by the pool contract on every transaction on Uniswap. This fee is divided between the liquidity providers proportionally to their share. For example if you provide 50% of the pool’s liquidity, you will earn 50% of the collected fee. That fee is added back into the liquidity depth of the pool, so your actual ROI, in terms of the % net gain in USD value of your initial added assets, depends on the movements of each token in the pair vs USD, and the the price fluctuations between the two tokens as trades are made on the pool.
You can read here for a more detailed explanation on the fees, but as it’s slightly complex to follow as your fees are generally bundled up into the liquidity depth of the pool, there have been some community efforts to build tools to track the fees you collect. Read more about this in the next section.
For withdrawing your fees, you need to also withdraw your liquidity. The way it works is you can withdraw some portion (or all) of your liquidity, and whatever portion you withdraw, it will also include the relevant fees that liquidity has earned in the pool.
How can I track the fees I collect?
Very easily, go to https://www.uniswaproi.com/#, log in or create your free account, and on the Home Page, enter the address you used to insert liquidity to the pool, and you’ll see the analysis of your Net ROI, Price ROI, Uniswap ROI etc..:
(1) In the UniswapROI app homepage’s search box, enter the address you would like to track ROI for:
(2) Click “Analyze ROI” to process that address’ liquidity positions. Once processed, they are displayed on the table:
(3) To access the page analyzing that address’ ROI and other Key Performance Indicators (KPIs), click the address (marked in green ellipse) when it appears on the summary table.
How Can I track General Uniswap ROI, liquidity and other KPIs?
There’s a great tool for that: https://zumzoom.github.io/analytics/uniswap
(2) Liquidity Providers by Token:
(3) A VERY GOOD ROI Review by Token, including decision points on hodling vs staking it in the pool etc:
with nice hover tooltips analytics:
(5) And lastly, Trade Volume breakdown by Date and Token:
How Can I Cash Out My Liquidity And Fee Earnings?
(1) From uniswap.exchange/pool, connect the metamask wallet with which you inserted liquidity, and it will automatically detect your Pooled Liquidity:
(2) Press the down arrow (marked in a green circle above) to access the dedicated info box analyzing the liquidity owned by address for both tokens in the pool, and the pool tokens that this address owns (pool tokens are a way for the pool to track how much of the liquidity was added by which address). The box will also unveil the options to Add more or Remove liquidity:
Here’s a Direct Link for Cashing Out from the 2KEY-DAI pool:
Add Liquidity Now And Start Earning!