The SHDR Token is ShadowRealms' official governance token. SHDR will have multiple purposes in game and is a valuable asset to hold. There are many ways to get SHDR, one of which is from redeemable SHDR token cards that can be obtained in card packs. A common way to gain SHDR is to add to our Liquidity pool. Information on this can be viewed below.
WHAT IS A LIQUIDITY POOL?
A Liquidity pool enables users to buy and sell Tokens on a decentralized exchange (DEX) without the need for centralized market makers. Essentially, a Liquidity pool on the Cardano Blockchain is a crowd sourced pool of tokens locked in a smart contract that is used to facilitate trades between ADA currency and tokens on the Cardano blockchain.
WHAT ARE THE BENIFITS OF ADDING TO THE LIQUIDITY POOL?
Providing Liquidity to the SHDR pool for ShadowRealms is just like staking it. The higher the total pool, the more your SHDR tokens are worth. Meaning the more SHDR you hold, the more you will gain. Adding your SHDR to the pool also provides you with more SHDR! You will earn SHDR having them just sit in the pool and you can withdraw your SHDR at any time and turn it into ADA. SHDR will be a big part of the game, which is why it is great to have lots of it now. Pooling SHDR is just another way to provide earning benefits for our players.
WHAT IS IMPERMANENT LOSS
Impermanent loss (IL) is something that can be occurred by all crypto currencies. IL only occurs if you withdraw your tokens if the price is lower then when you added to the pool, which is the same as just holding crypto and withdrawing to cash. IL can still be counteracted by trading fees. ShadowRealms has a charge of 0.05% on every trade that goes to liquidity providers. If there’s a lot of trading volume happening in the SHDR pool, it can be profitable to provide liquidity even if the pool is exposed to heavy IL. This does however, depend on the wider market conditions like all tokens and cryptos.
HOW TO CONTRIBUTE TO THE SHDR LIQUIDITY POOL
Go to the SundaeSwap website located HERE. When on the Home screen, search for our token SHDR. From there, click on the "Provide Liquidity" (As seen below).
Enter the amount of SHDR you would like to contribute to the pool. Depending on the amount of SHDR you wish to contribute, will depend on the amount of ADA that will be deposited at the time of providing liquidity. The ADA required will fluctuate depending on the total pool amount of SHDR at the time of your deposit.
Once you have entered in the amount of SHDR you would like to add to the liquidity pool and clicked "Provide Liquidity", you will be presented with a review screen to confirm your order deposit. This screen will also show you a summary including your share of the total pool supply, and how many LP token you will hold. Once you click "Order Deposit", and sign the exchange from your wallet provider.
After you have signed the exchange and your transaction has gone through, you will be able to view the LP tokens you hold in your wallet along with your overall pool share. For information on what LP tokens are, and further information on adding to the liquidity pool please read our FAQ's above.