At Telos we are really excited about DeFi and want to help the Telos community and indeed the entire crypto community get involved. This is a guide on using the new and fast growing DeFI Box platform to do TLOS swaps and even earn money adding to the liquidity pools. Quick warning, Providing liquidity is not without risk, although it is possible to earn money you can also lose money too. Please consult DeFi Box documentation to understand the risks for yourself.
How to perform Swaps
An EOS Account – you can obtain a free account from our friends at Wombat Wallet (it will cost $2 if you ever want to export the key)
Tokens stored on the EOS blockchain. If you dont have any, you may want to purchase from Coinbase or another popular exchange
Navigate to defibox.io and login with your EOS account (Anchor, Wombat, Scatter, SQRL etc are all good choices)
2. Input ‘EOS’ or another crypto as the payment and ‘TLOS’ as the received token
3. Click Swap, and sign the transaction
Fantastic, you have purchased TLOS on the EOS network. You likely want to transfer the TLOS onto the Telos network so you can stake it for resources or earn Staking Rewards!
4. Go to alcor.exchange/wallet, here we will transfer TLOS tokens from the EOS Network to Telos Network.
After logging in please select BOS Ibc Transfer.
5. Enter Telos as the network of choice, your account name and the amount you want to send . Create a Telos account here if you don’t already have one
How to add Liquidity to EOS/TLOS on DEFIBOX.io (risk involved)
Disclaimer – the TLOS token on DEFIBOX.io is an IBC TLOS token and will need to be swapped to the Telos mainnet. Swapping is free of charge.
TLOS liquidity will need to be matched by EOS. You will need both TLOS and EOS accounts to complete.
Navigate to telos.alcor.exchange and sign in to your Telos wallet. Navigate to the Wallet tab circled in red and then select the ‘BOS ibc Transfer’ circled in green.
2. Select EOS as the desired platform to transfer to. Input your EOS address and select the number of TLOS and confirm the transaction. Wait 1-5 minutes for the tokens to show up on your EOS account.
3. Navigate to defibox.io and login with your EOS account, input ‘EOS’ as the payment and ‘TLOS’ as the received token, or vice/versa. Click on ‘Details’ as circled below.
4. Confirm the amount of TLOS that you want to add liquidity for, the equal parts EOS will automatically populate. Once you are happy with the amount input, select confirm.
What are the benefits of adding TLOS Liquidity on defibox.io?
When under the Liquidity > Details screen for your chosen pair you will notice there is currently a 3.81% APY fee revenue. This will fluctuate(likely upwards initially) based on trading activity. To begin with this will be a primary means for making money but likely a Mining Reward will be available in the near future.
What are the Risks?
With any type of market making activity there is a risk of impermanent loss – Essentially if one side of the pair rises significantly in price you may end up with more of the lower value asset and overall make a loss. Essentially under certain trading conditions the USD valuation can be lower than what you started with even after receiving fee and mining reward revenue(if applicable).