Supercharger sounds like it has something to do with the energy transition, a topic we discussed recently on TheCoinTribune in an article about the WPO project. Today, our Supercharger topic will not take us to the world of electric vehicles, but to Crypto.com’s latest offer, which aims to offer a streamlined gateway to the world of DeFi, a market that has been booming over the past few months, and which Crypto.com wants to open up to all its users. So what is behind this offer? How does it work? And how can you take advantage of it to make your crypto portfolio grow? We will answer all these questions below. So, strap in, we’re heading to planet DeFi in the Crypto.com spaceship and its Supercharger offer.
Want to earn tokens from the decentralised finance (DeFi) space? This field has exploded in recent months. With the Crypto.com Supercharger, you can receive CRO tokens as a reward for powering a liquidity pool. As a reminder, CRO is Crypto.com’s own token. By staking a certain amount of crypto, you will be able to earn tokens during the reward period.
The first DeFi token up for grabs under Crypto.com’s Supercharger offer was Uniswap’s UNI token. Uniswap has become the most popular decentralised exchange in the DeFi space. In what has been called the airdrop of the century, Uniswap launched its UNI token to great success. This is just one of the tokens you can get in exchange for liquidity providing the Supercharger pool on Crypto.com. In the near future, you will be able to access several different liquidity pools all offering a different DeFi token.
The UNI pool on the Crypto.com Supercharger
The Supercharger consists of staking an amount of CRO to earn rewards. In the past, a total of half a million euros’ worth of UNI were distributed as part of the Supercharger. Right now, a quarter of a million dollars’ worth of bitcoin (BTC) are available. So now it’s important to note the steps you need to follow to participate.
The Crypto.com Supercharger has five key phases:
1. Crypto.com announces the launch of a Supercharger pool.
2. The 30-day charging period begins; you can deposit CRO into the pool.
3. The charging period ends, no new CRO can be deposited into the pool.
4. The 30-day reward period begins.
5. The Supercharger campaign ends.
Do you still not quite follow all this talk of Superchargers, CRO, UNI and Crypto.com? No worries, the best way to understand how everything works is by looking at a concrete example.
First example, you deposit 1,000 CRO into the liquidity pool that you just leave there for the whole charging period. Once the charging period is over, a liquidity ratio gets calculated. Crypto.com simply divides the share of the pool that your CRO represents by the total CRO present in the pool. To make it simple, let’s say the total size of the pool is 10,000 CRO. Therefore, with your 1,000 CRO you have a liquidity ratio of 1,000 ÷n10,000 = 0.1. That’s 10% of the total value of the pool. Once you have this ratio, it’s time to calculate the rewards you’ll be eligible for. This is calculated by evenly dividing the total number token rewards available by every participant’s liquidity ratio. Using the example of the UNI token: total number of UNI available x your liquidity ratio = your reward. To continue the above example, let’s say 100,000 UNI are up for grabs: 100,000 x 0.1 = 10,000 UNI. Of course, these numbers are only for illustrative purposes, and are not an accurate representation of the rewards you can get.
It is important to note that rewards are distributed to Supercharger users on a daily basis during the reward period. Be careful, you will have to claim your rewards in order to get them out of the pool; otherwise, the tokens will automatically be carried over to the next liquidity pool.
A video explanation of the Supercharger
Now let’s take a second example, this one shows what happens if you add liquidity to the Supercharger pool at the beginning of the CRO charging period, remove your stake for a few days, and then return it towards the end of the charging period. It is important to understand that your liquidity score is calculated at the end of the charging period by taking an average of your commitment to the liquidity pool over the period. In practical terms, if you do the following:
From days 1–10 of the charging period, you stake 1,000 CRO
From days 11–20 you remove these 1,000 CRO from the pool, bringing your proportion of the Supercharger back to 0 CRO
From days 21–30, you stake 3,000 CRO
In this case, the liquidity score is calculated by taking the following average: (10 days x 1,000 CRO + 10 days x 0 CRO + 10 days x 3,000 CRO) ÷ 30 days = 1,333 CRO.
Once the charging period comes to an end, your rewards will be calculated in this way. We are once again assuming a liquidity pool with a total value of 10,000 CRO. This gives a reward equal to: 1,333 ÷ 10,000 = 0.13 or 13% of the pool. If the number of UNI available is 100,000, then you will get 100,000 x 0.13 = 13,000 UNI. These will be distributed to you on a daily basis during the reward period, i.e. in this specific example 433 UNI per day over 30 days. As for the reward period, it is important to understand that you must show up at the end of the Supercharger charging period in order to accept your rewards and receive your UNI tokens earned during the reward period.
As of early December 2020, the Crypto.com Supercharger for UNI has closed, but the BTC Supercharger is still in its charging phase, so you need to be quick in order to participate in the Supercharger and receive BTC during the reward period.
To participate, start by going to Crypto.com. If you haven’t already, you’ll need to sign up on the platform by following the usual steps. Then, buy CRO with Bitcoin, Ethereum, or any of the other trading pairs available on the Crypto.com exchange. Once you have your CRO, you will be able to participate in the Supercharger. Go to the Supercharger tab, choose the amount of CRO you want to add to the Pool, and you’re done. All you have to do is wait until the end of the charging period to find out the proportion of the pool you contributed. Your token rewards will be calculated automatically, then all you have to do is log on to the platform to accept your rewards and receive them on a daily basis during the reward period.
Deposit CRO into the liquidity pool and get UNI
In conclusion, the Crypto.com Supercharger is a great little gem. By taking advantage of the liquidity pool you can earn DeFi tokens in a simple and secure way. All this without having to be an expert in cryptocurrency trading, and above all, without being exposed to the risks of DeFi exchanges. Crypto.com is a proven player in the sector with more than five million users and a great track record. It has experienced very significant growth in recent years with more than four million new users in the last 12 months alone. With its Supercharger, the Crypto.com team is showing their ability to innovate and make DeFi tokens accessible to all – so now it’s up to you to reap the rewards! Interested? The Crypto.com Supercharger is available here.
Diplômé d'une grande école de commerce, m'intéresser aux nouvelles tendances de marché fait partie de mon métier. L'intelligence artificielle, la blockchain et les cryptos, il fallait que je vous en parle !
Les propos et opinions exprimés dans cet article n'engagent que leur auteur, et ne doivent pas être considérés comme des conseils en investissement. Effectuez vos propres recherches avant toute décision d'investissement.
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