By Michael Mislos, updated by Jules Barcega
Update: RON was released around 8:00PM of 27th January (Manila time)
Update: December 28, 2024.
With the release of Katana Dex, Axie Infinity’s decentralized exchange, so does the announcement and release of Ron Token, the ecosystem token of Ronin, the sidechain of Axie Infinity.
In a statement, the Axie Infinity team said it launched RON at the same time as Katana because it wants to distribute this token to the members of the community who will begin adding liquidity to Katana. This means that every time you provide liquidity to ensure Katana Dex continues to operate, you have the opportunity to obtain RON in proportion to your contribution in the pool.
In this article, we explore how to stake your tokens to earn RON as rewards. We start by defining what is liquidity, what are liquidity pools, LP tokens, and impermanent loss before we proceed to the actual process of earning. But if you want to jump immediate:
- To learn how to farm RON via staking in validator pools, jump here.
- To learn how to farm RON tokens via liquidity pools – jump here.
Table of Contents
RON TOKEN 101, What is RON?
RON is the ecosystem token of the Ronin chain. It will be used as a fee for all transactions happening in Axie Infinity and also in all other games that will be in the RONIN sidechain.
RON is therefore needed to ensure the Ronin blockchain is continually owned by the community.
Beginners Guide to RON Staking
In contrast to AXS staking, you can stake RON by choosing a validator where you will stake the RON that you have. If the validator earn rewards, you will earn rewards as well.
Why did the validator earn rewards? The validators are the ones that secure the Ronin network. For their effort they receive these rewards in the form of RON.
Step by Step: How to Stake RON
1. Go to this page https://app.roninchain.com/staking and connect your wallet.
2. Go to the all validators page and select a validator to whom you will delegate your RON.
3. Enter the amount of RON that you want to stake and then select DELEGATE.
4. Confirm the transaction.
That’s it! You can view your staked RON at RON Staking > My Staking.
How to Claim your RON Rewards from Staking?
1. go to RON Staking > My staking
2. Check CLAIMABLE REWARDS and then select CLAIM ALL.
How users get RON as rewards?
Rewards in the form of RON tokens are given to users who provide liquidity to Katana.
Rewards in the form of RON tokens are also given to users who stake their RON in the validator pools
This article will explain those in detail, but before everything else, we must understand what Liquidity Pool is first.
Beginners Guide to Earning RON via Liquidity Pools
What is a Liquidity Pool?
When someone says an exchange is “liquid,” it means its users are able to convert their token to another token with ease. For example, if the current ETH price is $4,500, and I want to sell my 1 ETH at $4,502, a liquid exchange ensures that there should always be someone willing to match my price. Most often than not, this is made possible by the so-called market makers, who are professional traders or entities.
In a decentralized exchange, the job to ensure trades are matched rests with the community itself. The community will “add liquidity” to a pool to make sure everyone gets better prices when swapping. In return for their service, they receive fees and in addition, rewards.
When you provide liquidity in Katana right now, you get fees plus RON as rewards. More on this later.
How to Provide Liquidity for RON?
You must provide two assets that are of equal value into the pool. For example, if the 1 ETH is $4,000 and 1 AXS is $100, if you want to provide 1 ETH to the pool, you also need to provide 40 AXS.
What are the available tokens at Katana?
BERRY is a token from the game Pixels, one of the new games that migrated to the Ronin blockchain.
What Trading Pairs are available to add Liquidity?
The tokens above can be paired to provide liquidity. In the Axie ecosystem.
What are LP Tokens?
This is the token that gets generated as a way to represent the value of the two tokens you provided into the pool.
Wait, I get Ron Token for Adding Liquidity?
Where Can I Farm RON to get LP tokens?
You can farm RON in the following LP pools:
What is the current APR?
At the time this article is updated (December 2023), the following are the APR percentage when you farm RON in the pools above:
Is Adding Liquidity in Katana Dex profitable?
There’s what we call Impermanent Loss.
What is Impermanent Loss?
When you added 1 ETH and 40 AXS earlier for $4,000 of equal value from both of these tokens, you’ll get this “impermanent loss” once the value of the tokens against each other changes.
Let’s give a better example: You deposit 1 ETH and 100 USDC (assuming 1 ETH = 100 USDC for simplicity’s sake). This means you have $200 provided into the liquidity pool (1 ETH is $100 and 100 USDC is $100)
What if the value of ETH becomes $150? We’ll skip the technicalities, but you, the liquidity provider, decided to withdraw your funds from the pool, you’ll receive .5 ETH and 150 USDC totalling $200.
What if you decide not to add funds to the liquidity pool? What if you simply HODL’D? Yes, you’ll have:
1 ETH = worth $150 and 100 USDC still worth $100, so you have $250.
So it’s clear that if you simply hodl’d, you’ll have more in dollar terms. So why provide liquidity then? More on this next:
What are the rewards for adding liquidity?
As a liquidity provider, you’ll earn trading fees (instead of the market makers earning this in centralized exchanges)
In the case of Katana Dex, liquidity providers will also be given RON token as reward.
At the time this article was first written, RON token had no value. There are estimates floating around on Twitter, but simply put, we’ll know more once RON is actually released.
At the time this article is updated, RON has went up in value to $2. The reward for providing liquidity is x number of RON that you earned multiplied by $2. Your reward will depend on the value of RON.
Let’s proceed on adding liquidity.
How to Add Liquidity Pair in Katana
Step 1: Add Liquidity
1) To start, go to https://katana.roninchain.com/#/pool. You will arrive at this page:
2) Click “Add Liquidity.”
3) The next page will ask you to provide tokens of equivalent value.
You actually only need to fill in the value for one token and Katana will auto-populate the value for the 2nd token.
4) Click Supply. The next page will show you the amount of LP tokens you will receive.
5) Click “Confirm Supply” then “Confirm” on the pop-up that will appear.
You have now added funds to the Katana Liquidity Pool!
Step 1.1: Check where you can find the trading fees you earn
1) Go to Analytics at https://katana-analytics.roninchain.com/home.
2) Click Accounts. You will arrive at this page:
3) Input your Ronin address in this page. You will see the following:
(Sorry if we have to edit the screenshot, but here’s what you’ll see:)
- Your Liquidity (Including Fees)
- Liquidity Position
- The transactions you did
- Wallet Stats including total fees earned.
Step 1.2: How to remove liquidity from Katana?
Just click Remove on the Analytics page (see above picture) or in the Pool page.
Step 2: Farm Ronin Tokens in Axie Infinity’s Katana Dex
In order to earn Ron tokens, you must “stake” the LP tokens you receive when you provide liquidity to Katana.
1) Go to Katana Farm Page here: https://katana.roninchain.com/#/farm. You will arrive at this page:
2) Click the down arrow. If you already have LP tokens, there’s a button to “approve.”
3) Click “stake” after you approve.
4) A confirmation step will appear.
Once the staking of the LP tokens is complete, you will begin earning free RON tokens!
Step 2.1: How to Stop Farming Ron Tokens
On the Katana “Farm Page” just click “Unstake” (see picture above).
How to claim RON from Liquidity Pool?
Connect your Ronin wallet to https://katana.roninchain.com/#/farm.
Then, select which liquidity pair you were farming RON with either AXS/WETH or SLP/WETH.
Click on “Claim” and confirm the transaction on your Ronin wallet.
Your RON earned will reflect on your Ronin Wallet after the transaction is completed.
This article is published on BitPinas: Ron Token Axie Infinity Guide | How to Farm and Earn Ron with SLP, AXS, WETH, Stake, Add Liquidity Pool on Ronin
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