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Embark on Your THORChain Adventure with KeepKey and ShapeShift


Diving into the role of a liquidity provider on THORChain just got a whole lot smoother and potentially richer, courtesy of ShapeShift’s sleek integration and the robust security KeepKey brings to the table. This handy guide is designed to navigate you through the exciting process of launching as an LP on THORChain, covering everything from initial setup to the strategic management of your liquidity stakes.

Kickstarting Your LP Quest with ShapeShift and KeepKey

Spotted the “Pool” option in the ShapeShift universe? That’s your portal to liquidity provider glory on THORChain. Let’s dissect the journey into manageable steps:

  1. Selecting Your Battle Arena: Venture into the “Pool” section on ShapeShift. Bear in mind, the realm of pools pairs majestically with RUNE, so armoring up with RUNE or converting your assets into RUNE is your first step to glory.
  2. Forging Your Liquidity Position: Choose your desired pool and forge a new LP position. The art here is in the balance—your arsenal of Bitcoin and RUNE must be equally valued. Say you wield $10,000 worth of Bitcoin and $15,000 of RUNE; your maximum battlefield position is $10,000 on each front.
  3. Mastering Asymmetric Adds: Should you choose to march into battle asymmetrically (with a single asset), your contribution will be tactically swapped to ensure balance, a move that may lead to slippage as you enter or retreat from the pool.

Faced a dragon and had to retreat momentarily? Fear not. Simply summon ShapeShift again, march towards the pools, and you’ll find your paused crusade marked “incomplete,” ready for you to resume.

Once your LP addition is valiantly completed, you can keep a vigilant eye on your position and the treasures you accumulate under “Your Positions”.

The Spoils of War

The treasure trove of serving as an LP on THORChain, through the gates of ShapeShift and guarded by KeepKey, is the lure of bountiful APYs harvested from the fees of trading within the liquidity pools, depending on the vigor and frequency of the market’s battles.

Charting the Seas of Risk

Every adventurer must be wary of impermanent loss, the phantom menace that looms when the value of assets within the pool shifts. THORChain, in its wisdom, has devised strategies like slip-based fees and incentives for liquidity providers to lessen the shadow of impermanent loss, making the venture into liquidity provision even more enticing.

Choosing Your Path

Selecting the right pool is akin to choosing your quest; pools with assets that dance closely in value are generally safer but offer modest rewards. Conversely, pools where assets diverge in their paths pose greater risks but also the promise of richer rewards.

The Heroes of DeFi

Stepping up as an LP, you’re not just chasing after gold; you’re fueling the engines of decentralized trading and championing a financial system that empowers its constituents. Joining forces with ShapeShift and KeepKey to venture into THORChain pools casts you as a pioneer, striving towards a DeFi realm that’s more secure, straightforward, and open to all explorers.

To conclude, your foray into liquidity provision on THORChain, aided by the alliance of ShapeShift and KeepKey, transcends mere asset security or the pursuit of gains. It’s about actively contributing to the saga of finance decentralization, one liquidity pool at a time. With this guide as your map, you’re well-equipped to navigate the thrilling DeFi waters ahead.