Last week, we announced some major upgrades to the MINDS token and our rewards system. While there are many great improvements, the most significant upgrade is the integration of the MINDS token with Uniswap, a decentralized trading protocol.
This is a major milestone for the token as it decentralizes the economy. It enables any MINDS token holder to swap their tokens for ETH or provide liquidity for the market to earn rewards and essentially free advertising.
The purpose of this blog is to help you learn how to use Uniswap and why it matters. This is cutting-edge technology and has a bit of a learning curve, but bare with us, because the light at the end of the tunnel is worthwhile.
The official MINDS token page on Uniswap can be found here.
Before you are able to swap your MINDS tokens or provide liquidity on Uniswap, you need to first follow these steps to get set up:
1. Connect a web3 wallet to Minds
2. Fill your wallet with ETH
3. Fill your wallet with MINDS
Once you have a web3 wallet set up and filled with MINDS and ETH, you are now ready to start using Uniswap!
Uniswap allows anyone to easily swap MINDS for ETH and vice versa.
To swap with MINDS, follow these steps:
You are now ready to swap. The default setting will be to swap ETH for MINDS. If you would like to swap MINDS for ETH, simply click the arrow between the two assets to flip it around.
You can also access the MINDS trading pairs directly from Uniswap at this link.
Uniswap also allows anyone to easily pool MINDS and ETH together and provide liquidity for the trading pair. Liquidity pools are required in order for trading to be possible.
To pool liquidity with MINDS, follow these steps:
You are now ready to pool liquidity. You are required to pool the equivalent amount of both MINDS and ETH at the current market price to enter the liquidity pool.
Your initial balance of MINDS and ETH will change depending on the activity within the trading pair. If more people are swapping ETH for MINDS, then your ETH balance will grow and your MINDS balance will fall. If more people are swapping MINDS for ETH, then your MINDS balance will grow and your ETH balance will fall. The value of your position will remain constant, but the allocation of that position will shift (note: the value of your position may change if the market price of ETH or MINDS changes).
When you add liquidity, you will receive pool tokens representing your position. These tokens automatically earn fees proportional to your share of the pool, and can be redeemed at any time. By adding liquidity you'll earn 0.3% of all trades on this pair proportional to your share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity.
Minds leverages your pool tokens to grant you additional rewards on the Minds network. 5,000 MINDS are rewarded every day to LPs based on their share of the liquidity pool. Similarly, LPs are rewarded with free advertising space on the newsfeed relative to their share of the reward pool.
To learn more about Uniswap, check out this blog from Decrypt or this video explainer from Finematics.
The integration with Uniswap is a big step towards further decentralizing the MINDS token infrastructure. It significantly increases the utility of the token by leveraging liquidity positions to grant users access to products and services on the Minds network in correlation with their participation. It also provides you with a more tangible way to boost your channel on-chain with a single transaction.
Ultimately, this integration is about giving more power to you, the community.
The Minds Team
To learn more about MINDS, here are some additional guides:
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