Diving into the WLEO liquidity pool by partitura

hive-167922 · @partitura · Sep 25 '20 (edited)

$3.94

Diving into the WLEO liquidity pool

A lot has been written already about WLEO, and the bounty for providing liquidity to the Uniswap liquidity pool. After some initial hesitations I decided to join the game and invest some LEO en ETH. At the least to gain some experience with this part of DeFi and with some luck to gain perhaps a few hundred or even thousand LEO-tokens. At the moment I have some 700 LEO liquid on Hive-engine, so I started with that. The proces of wrapping LEO to WLEO is quite simple as a spelcial website has been builkd to do just that. Just go to https://wleo.io and there is a screen that asks for your Ethereum adrress. In my earlier experiments in DeFi I created a MetaMask wallet, so I use the address of that wallet.

![image.png](https://images.hive.blog/DQmYFpu4JsjzMotAxPCqHu3erEYCTM2t9qBUuBczyfz4itV/image.png)

Then I had to fill in how much LEO I want to wrpa and what my HIVE username is. This last bit is important. If the ethereum address that provides liquidity to the WLEO/ETH pool on Uniswap is linked to an HIVE address, the bounty is paid out in LEO on the HIVE blockchain. If a HIVE username is not known, the bounty is paid out on the Ethereum address. And the drawback of that is, it costs gas fees if I want to withdraw the bounty.

![image.png](https://images.hive.blog/DQmXzWWXbHZ5rSimeKnW9tEXfMhJEE1b6sWi72rEx9cz5tb/image.png)

I filled in 700 and provided my username.

![image.png](https://images.hive.blog/DQmT7JZGXYuFVcgYNjCLqJ1yzLL5ZNs66pUKP4YjXVELL7k/image.png)

Because of the gass fees the amount of WLEO will be less than the amount of LEO tokens punt in. In this case I geet 666 WLEO for 700 LEO.

![image.png](https://images.hive.blog/DQmXvYje8ZU1FEmdxRbEhoencvEtbfQWsg1V49Po11rnQLU/image.png)

To be able to see the WLEO in my MetaMask wallet, I first have to add the token to the list of tokens shown. In metamask press add token, click the tab custom token and fill the contract address of wleo (0x352c0F76Cfd34Ab3A2724ef67F46cf4D3f61192B). Then click next and voila, you can see your wLeo in your metamask wallet.

![image.png](https://images.hive.blog/DQmYq1VtpSFaNxMzVXyvybXw4fcjw294vncUvK15wQGsp8s/image.png)

Okay, so now I have some WLEO. To participate in the liquidity pool you have to add an equal part in WLEOand in ETH. So, I need some ETH. That is of course easy to buy and to transfer to my MetMask-wallet. I bought about 10 times as much ETH than the dollar worth of those 666 WLEO. The first thing to do is therefore to buy some more WLEO to balance the two.

https://uniswap.info/pair/0x85c4f11c4b3887425762e9d7e63774f087411dcf

![image.png](https://images.hive.blog/DQmX5deA6W5cBUPm6mshueVFpX2pKDPTwYxdCRaLAXrQfPe/image.png)

In the right upper corner you can choose between "add liquidity" and "trade". First I click "trade" and that brings me to this screen:

![image.png](https://images.hive.blog/DQmYdLSVYqWbncrzGSP3hk6BQdS7xphjEANGkL5BieNJeHo/image.png)

The scary warning is there because, as it says, anyone can create an ERC20 token on Ethereum with any name, so the name alone is not enough to be sure this is the genuine trading pair for ETH en WLEO. As it is the address I found in other posts about WLEO, I'm going to put in a little faith and click the "I understand" check box. Then I get to the screen where I can actually swap WLEO for Eth and vice versa.

![image.png](https://images.hive.blog/DQmbkR3xvptnxc1XJNfvRZkgFM8JRdv7vKLQp6vd1AEhmeN/image.png)

Now I have a little calculating to do. One ETH is 2358 WLEO, so the 666 WLEO I already have is worth about 666/2358 = 0.282 ETH. If I spend 1.4 ETH on WLEO, I have a in total 1.7 ETH worth of WLEO and should add the same amount of ETH in the liquidity pool. That makes 1.4 + 1.7 = 3.1 ETH in total, so I still have about 0.3 ETH to cover gas fees along the way. Okay, let's do it.

![image.png](https://images.hive.blog/DQmdqKjDXSugRxHmVGaJcd9QhkNgA6JzYqNR1tRXzFMgfcs/image.png)

Once the transaction comes through (it took a while) it is time to actually add something to the liquidity pool. Clicking the "add liquidity" button gives the screen where the final step can be done. The screen automagically balances the amount of WLEO and ETH. But before I can click the "Supply" button, I first have to "approve WLEO". That's a bit of a nuisance because it's an added step that costs gas fee, but it has to be done, otherwise I'm stuck here.

![image.png](https://images.hive.blog/DQmfE5iyN1HwRuLQdMbszpRdir4khayi8n4zRPsK6azu3pP/image.png)

After WLEO is approved, I can press the "supply" button and my tokens are added to the liquidity pool. Okay, cool. I now have a whopping 0.69% share of the total liquidity pool. And an hour after I added my tokens,, I have already earned a little over 2 cents in fees with it.

![image.png](https://images.hive.blog/DQmVQBwm24MDtYr1ZdwDd8TKSDuincBCbz6HNgdVVKtgMQL/image.png)

Well, I won't get rich fast with 2 cents per hour, but perhaps I can at least earn back the fees it cost me to set this up. The costs were:
- 34 LEO fro wrapping 700 LEO
- 0.01 ETH gas fee for moving the ETH to my MetaMask wallet
- 0.012 ETH gas fee for buying WLEO
- 0.004 ETH gas fee for approving WLEO
- 0.0155 ETH gas fee for adding my tokens to the liquidity pool.

That's $5.10 + $14.18 = $19.28. At 2 cents per hour, it'll take almost three months to break even. Luckily, there's the bounty for providing liquidity. I hope I've set up everything correctly and that I'm eligible to receive my part of that bounty.

Posted Using [LeoFinance <sup>Beta</sup>](https://beta.leofinance.io/hive-167922/@partitura/diving-into-the-wleo-liquidity-pool)

Posted using [Dapplr](https://app.dapplr.in/QCHTxToPzp4WymGp8)

👍 leo.voter, partitura, holger80, steemcryptosicko, lugina, drakos, ctime, life-timer, sbi3, isaria, gunthertopp, johannpiber, nateaguila, khaleelkazi, goldrooster, mmmmkkkk311, erikklok, swelker101, likwid, payroll, eternalsuccess, arcange, communitybank, clayboyn, contrabourdon, robmolecule, carlosehijos55, rollandthomas, bradfordtennyson, vintherinvest, leofinance, mcoinz79, trisolaran, minnowpowerup, thepeakstudio, vishal09, snoochieboochies, elvielins, jackramsey, dallas27, cardboard, emekasegun, chipdip, spinvest, randomblock1, battebilly, gadrian, pixelfan, engrsayful, blainjones, promobot, joelagbo, fullnodeupdate, drlobes, haikusailor, liverehab, pearlumie, phogyan, supriya1993, upvoteinvest, hardaeborla, adriansky, underground, travelnepal, and 107 others

`author`	partitura
`permlink`	diving-into-the-wleo-liquidity-pool
`category`	hive-167922
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`created`	2020-09-25 12:09:45
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`root_title`	"Diving into the WLEO liquidity pool"
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