📚A Guide to SteakHouse Finance
Introduction
In the latest wave of DeFi protocols, we’ve seen numerous platforms emerge that allow users to stake their funds in return for the protocol’s tokens. In this article, we’ll take a look at SteakHouse – a decentralized protocol built on Polygon/Matic network
The SteakHouse Finance
SteakHouse Swap uses an automated market maker (AMM) model. That means that while you can trade digital assets on the platform, there isn’t an order book where you’re matched with someone else. Instead, you trade against a liquidity pool.
Those pools are filled with other users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees.
Token swaps on SteakHouse Swap are a simple way to trade one ERC-20 token for another via automated liquidity pools.
The liquidity provided to the exchange comes from Liquidity Providers ("LPs") who stake their tokens in "Pools". In exchange, they get LP tokens, which can also be staked to earn STEAK tokens in the "farm".
When you make a token swap (trade) on the exchange you will pay a 0,6%, which is broken down as follows:
0.3% - Returned to liquidity pools in the form of a fee reward for liquidity providers.
0.3% - Sent to the SteakHouse Swap Treasury.
Using SteakHouse Swap exchange
You’ll notice if you visit SteakHouse.finance that many features are inaccessible until you click on Unlock Wallet. Click on it, and you’ll be met with a few options: MetaMask, Trust Wallet, and other options. Once you’ve got connect, you can add liquidity. Again, if you’ve used any AMM previously, then you know the drill.
Go to the exchange page
Unlock your Wallet
Select the tokens you wish to trade and enter the amount
Check the details, and click “Swap”
Check the details and click “Confirm Swap”
Confirm the transaction in your wallet
Done!
Liquidity Pools
SteakHouse Swap pools allow you to provide liquidity by adding your tokens to liquidity pools or “LPs”.
When you add your token to a liquidity pool, you will receive LV1 tokens. You’ll find these LV1 tokens in several flavors – if you added, say, WETH and USDC to the pool, you’ll receive WETH-USDC LV1 tokens in return. DAI and USDT? You’ll get DAI-USDT LV1 tokens.
The number of SKLP tokens you receive represents your portion for example of the WETH-USDC liquidity pool. You can also redeem your funds at any time by removing your liquidity.
Providing liquidity is not without risk, as you may be exposed to impermanent loss. “Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.” - Nate Hindman
It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. Whenever someone trades SteakHouse Swap, the trader pays a 0.6%f ee, of which 0.3% is added to the liquidity pool of the swap pair they traded on.
To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the STEAK farms, while still earning your 0.3% trading fee reward.
Adding Liquidity
Go to the exchange page and click “Pool” and then “Add Liquidity”
Select the tokens to add, in this case STEAK and USDC. You need to provide them in a 50/50 ratio vs USD value. For example, you would need to add $10 of STEAK and $10 of USDC. Once you are done, click “Supply”
Check the details, click “Confirm Supply” and then confirm the transaction in your wallet
You now have liquidity tokens. Now go to STEAK tab at SteakHouse
Click "Approve Contract“on the farm STEAK-USDC LV1 and after that will appear button "Stake LP"
Click the “Stake LP” button to stake your liquidity tokens
Enter the number of liquidity tokens you want to stake and click “Confirm”
Done!
So, in short, you can trade ERC-20 tokens, or add liquidity and earn rewards. There are also other features we’ll cover later.
How to Yield Farm on SteakHouseSwap
But wait, there’s more! SteakHouse also allows you to farm its governance token – STEAK. On the farm, you can deposit your LV1 tokens, locking them up in a process that rewards you with STEAK. Which LV1 tokens can you deposit? Well, here’s a taster of some of the most popular ones:
STEAK - USDC LV1
STEAK - WMATIC LV1
STEAK - USDT LV1
WETH - USDC LV1
WBTC - USDC LV1
DAI - USDT LV1
DAI - USDC LV1
USDC - USDT LV1
WETH - WMATIC LV1
LINK - USDC LV1
WMATIC - USDC LV1
AAVE - USDC LV1
Go to the exchange page and click “Pool” and then “Add Liquidity”
Select the tokens to add, in this case STEAK and USDC. You need to provide them in a 50/50 ratio vs USD value. For example, you would need to add $10 of STEAK and $10 of USDC. Once you are done, click “Supply”
Check the details, click “Confirm Supply” and then confirm the transaction in your wallet
You now have liquidity tokens. Now go to STEAK tab at SteakHouse
Click "Approve Contract“on the farm STEAK-USDC LV1 and after that will appear button "Stake LP"
Click the “Stake LP” button to stake your liquidity tokens
Enter the number of liquidity tokens you want to stake and click “Confirm”
Done!
So you’ve deposited some funds to receive LV1 tokens, and you’ve used them to farm STEAK. From there, the rewards don’t end. You can earn even more by staking your STEAK in GRILL pools.
The biggest GRILL pool is simply for STEAK, where you can stake your STEAK to earn even more STEAK! But there are many more tokens you can earn by staking STEAK, so be sure to keep an eye on the GRILL page.
GRILL Pools
Once you’ve got STEAK, you can stake it in GRILL pools. Go to the GRILL tab, and you’ll be presented with the pools where you can stake your STEAK. Your wallet have to be conectted.
Choose your GRILL pool and approve the withdrawal of your tokens. Hit Approve to do so. When that has been approved, you’ll need to select the amount of STEAK you want to stake.
Now that the STEAK has been staked, you’ll be earning the reward token of the pool passively. If you’d like to cash out your rewards, click on Harvest.
GRILL allow Polygon/MATIC network projects to bootstrap adoption by distributing a portion of their tokens to STEAK token holders.
GRILL is split into two sections: Core and Community.
Core will be initially selected by the SteakHouse team.
Community will be projects that pass a community vote on the governance portal.
Note that any project will be able to distribute tokens via GRILL, but only projects that win a vote would be listed on the swap interface as a default option (in order to discourage scams).
Why would projects want to participate?
Since SteakHouse has had the fairest launch ever, GRILL Pool projects will allow projects to receive market attention by issuing tokens to the largest (and most active) Polygon/Matic community.
Projects will also receive an immediate default listing on the SteakHouse Swap interface, obtaining priority promotion on the exchange (by ranking temporarily first in selecting tokens on the website). Every staked STEAK generating 1:1 GRILL. Not tradable token and if you lost it you will stake forever and your STAKEs will turn to charcoals 🙂
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