LP Creation - Support tokens as Collateral in Minutes
How to Create an Altcoin Collateral Market
Last updated
How to Create an Altcoin Collateral Market
Last updated
Listing an altcoin as collateral in KRAV BTC futures is a seamless process that can be accomplished in a few minutes and clicks! Any user/protocol can add any amount of any ERC20 token and immediately generate a collateral market for their token. Once that market has been created, users can immediately use the token as collateral in BTC perpetuals, and the LPs may begin earning yield.
The first step of creating a liquidity market in KRAV is heading over to the liquidity tab, accessible at the top of the page. Once on the liquidity page, simply click on the "Create Liquidity" button.
Upon clicking "Create Liquidity", the following form pops up
Choose Target Market
Choose the underlying oracle asset that people may bet on with your supplied altcoin as collateral. At the moment, the only choice is BTC, however, additional assets may be added in the future.
Select Token Collateral Input the token address for the altcoin you wish to add, ensure that the address is correct for the given blockchain. Keep in mind any token, including gamefi, memecoins, and any ERC20 token may be added.
Initial LP Provision
Input however many tokens you wish to add to the LP. Keep in mind, larger amounts of token supplied result in larger liquidity, supporting greater user trading volume. Greater trading volume, results in higher yield earned.
Click "Deposit and create" to create liquidity Pool Upon execution of the smart contract, the LP pool is created. BOOM! That's it, now any traders may trade with the supplied altcoin as collateral, and the LP provider may begin to earn yield!
Note:
LP's may only withdrawl 25% of their liquidity supplied at a time, with a roughly 48 hour waiting period in between each withdrawl. This withdrawl period exist in place to ensure stable liquidity of perpetual markets. Likewise, LPs may face a level of risk in trade impacts. However, KRAV institutes various dynamic risk mechanisms to mitigate such impacts. For more, see KRAV Risk Mechanisms
