How to Provide Liquidity in Public Pool
Shield utilizes a dual liquidity pool, where the public pool acts as the reserve pool with minor major party risks and the private pool acts as an active pool with major counterparty risks. Shield suggests that you fully understand how both pools work, and choose your ideal mining method.
When you deposit stablecoins into this liquidity pool, you will receive a corresponding LP token. These reTOKENs can be redeemed for SLD tokens on a pro-rata basis. For instance, if you deposit DAI into the protocol, you will receive a corresponding reDAI which is calculated using the following formula:
reDAIreceived = (DAIdeposit * reDAIpre-deposit amount)/(DAIpre-deposit amount - DAIDeposit)
This reTOKEN will be an automatically generated BEP-20 token, that you can use to claim the mining rewards from the liquidity mining smart contract on a pro-rata basis.
Initially, the mining rewards in the backup pool would be 2 SLD per block. Due course of time, every time the distributed rewards reach 20% of the undistributed rewards, these rewards will be halved.
The public pool is open for everyone to deposit liquidity into the platform, which will only be utilized when there is insufficient liquidity in private pool.
Here’s how you can provide liquidity in public pool.
Step 1: Go to the Shield Pool page and connect to your wallet.
Step 2: Select your desired liquidity, specify the amount of assets and review the details. Then click CONFIRM and complete the transaction.
Step 3: You receive-reTOKEN, corresponding to the token deposited - reDAI, reUSDT, and reUSDC. Scroll down to check your share in the pool.
Step 4: Head over to the Shield MINING page, input the ReToken, and press LOCK.
Step 5: Check SLD real-time rewards.
Last modified 4mo ago
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