Liquidity baking allows us to gain rewards by providing DEX liquidity. At the moment 2.5 tez subsidy is granted at each block for the liquidity pool participants. And since we have two blocks per minute, there are 7200 seventy-two hundred tez subsidy rewards daily, and it’s equal to 2.6 million per year.
You can take part in this process with a few simple actions: TzKT explorer already has all the needed tools.
Here we go:
First, we need to find a Liquidity baking DEX contract.
By the way, you can just type its name in a search bar. Then, switch it to the DEX tab (opens new window).
Now we need to connect a tezos wallet. There are several options: Temple, Kukai, Galleon, and Spire wallets.
When it’s done, you need to purchase some TzBTC tokens, because liquidity must be provided in equal shares of XTZ and TzBTC, according to the current price. So, you need to convert half of what you are going to put in the liquidity pool. You can do it right here in the trade tab.
And finally, click the “add liquidity” tab to start a process. Specify an amount of one currency and you will automatically get an equal amount of another one.
Then confirm the wallet pop-up, and it’s done.
Check your address to ensure it is confirmed, and not failed due to slippage or any other error.
After providing liquidity you receive some amount of liquidity tokens, that you can see on the tokens tab. Your share will be proportional to your contribution to the pool. Total supply can be found here at the storage tab, so you’d be able to calculate your own share and the earnings.
If you want to get your assets back there is a “remove liquidity” tab. All you need is to burn the required amount of liquidity tokens received earlier. Click to your balance to quickly select all of your tokens.