Introduction

Velar is excited to introduce the sBTC Testnet Pool, a new feature in our DeFi ecosystem aimed at providing users with a hands-on experience in the decentralized finance landscape.

The sBTC Testnet Pool is another step to our commitment to innovation, but also a direct response to the growing needs of our community for diverse and robust DeFi tools. In this announcement blog, we will guide you through every step of participating in this exciting new offering.

Main Announcement

We are pleased to announce the official launch of the sBTC Testnet Pool on Velar. This feature allows users to interact with sBTC in a testnet environment, offering a risk-free space for experimentation. Key aspects of the sBTC Testnet Pool include:

1. Testnet Exploration: Utilize the testnet environment to gain a feel for the interactions between Bitcoin and sBTC, ensuring a thorough understanding.

2. Risk-Free Learning: Engage in realistic experiments with Bitcoin transactions without the financial risks associated with live trading.

3. Liquidity and Trading Strategies: Develop skills in liquidity management and trading strategies, specifically tailored to Bitcoin transactions.

4. Community Involvement: We invite our community to actively participate, provide valuable feedback, and contribute to shaping the future of Bitcoin in DeFi.

5. Educational Focus: Whether you're a newcomer or an experienced investor, the sBTC Testnet Pool offers insights into DeFi practices centered around Bitcoin.

   
   

Step-by-Step Guide

Step 0: Setting up a Bitcoin Wallet

Setting up a Bitcoin wallet is the first crucial step to engage with the Velar ecosystem. Your chosen wallet will be the gateway for various interactions, from swapping assets to participating in liquidity pools and farming.

• Choose and download one of the compatible wallets: Leather Wallet or XVerse.

• Download the wallet to your device for interaction with the Velar Protocol.

• Follow the provided instructions to set up your Bitcoin Wallet account.

• Safely store the seed phrase as it is crucial for account recovery.

• Access the wallet settings and switch the network to Testnet, ensuring it's configured to interact with the Velar testnet app.

Step 1. Get Testnet STX from Faucet

Acquiring Testnet STX is essential for participating in the Velar ecosystem. The Faucet provides a straightforward method to obtain the required Testnet STX for further transactions and engagements.

• Head to Velar Faucet page by clicking on Request STX on top

• Utilize the Velar Faucet to request Testnet STX.

• Alternatively, one can acquire Testnet STX from the Stacks or Leather Faucet.

Note: It can take around 15-30 mins for the testnet STX to arrive in your wallet using Velar Faucet.

Step 2. Use the Velar Swap Function

The Velar Swap function enables users to seamlessly exchange one token for another, leveraging Velar’s Automated Market Maker (AMM) protocol. This step is crucial for obtaining Testnet sBTC, unlocking further opportunities within the Velar ecosystem.

• Visit the Swap page on Velar webapp.

• Select the desired swap pair (STX to sBTC or vice versa) and input the amount.

• Click the "Confirm" button.

• Approve the transaction in the wallet pop-up.

• Wait for 10-15 minutes for the transaction to settle on the Stacks chain.

Step 3. Add Liquidity in STX/sBTC Pool

Adding liquidity to the STX/sBTC pool makes you a liquidity provider, contributing to the ecosystem's overall stability. By providing liquidity, you earn fees and play a crucial role in facilitating seamless transactions for other users.

• Head to the Liquidity Pools page.

• Select the wSTX-sBTC pair from the available options.

• Scroll down to the "Add Liquidity" box.

• Input the amount for both wSTX and sBTC tokens.

• Confirm the transaction.

Step 4. Stake Liquidity in Farming Pool

Staking LP tokens in the Velar Farm allows you to earn additional rewards on top of transaction fees. By participating in the farming pool, you actively support the Velar network's liquidity and growth.

• Head to the Farming page.

• Select the wSTX-sBTC farm

• Stake the LP tokens received in exchange for providing liquidity in the earlier step.

• Click on ‘Stake’ button and approve the transaction.

Step 5. Claim Rewards & Unstake LP Tokens

Claiming rewards is the culmination of your participation in the farming pool. Rewards reflect your contribution and are claimable after specific epochs, enhancing your overall engagement in the Velar ecosystem.

Whereas unstaking LP tokens allows you to reclaim your assets, providing flexibility in managing your holdings. This step is essential for users looking to adjust their participation in the Velar liquidity pool.

• Click on "My Rewards" tab on the same page.

• Claim your rewards when they become available.

• Once you’ve claimed your rewards, click on ‘Unstake’ tab on the same farming page.

• Enter the amount and click on the ‘Remove Stake’ button to retrieve your LP tokens.

Note: Rewards can be claimed two epochs after you have staked your LP tokens. For example, if you have staked your LP tokens in epoch 1, your rewards will become available for claim starting from epoch 3.

Step 6. Remove Liquidity from STX/sBTC Pool

Removing liquidity from the STX/sBTC pool allows you to retrieve your assets and claim your share of the fees earned by the pool. This step provides flexibility in managing your assets within the Velar ecosystem.

• Head back to the Liquidity Pools page

• Select the STX/sBTC pool

• Scroll down to the “My Liquidity” tab.

• Click on “Remove Liquidity” to withdraw your liquidity.

Note: Ensure you've unstaked your LP tokens before removing liquidity.

By following these simple steps, you can get started with Velar sBTC testnet pool. If you have any questions or need assistance with any of the steps, feel free to reach out to the Velar community on Discord.

Best Practices and Tips

To maximize your experience with the sBTC Testnet Pool, we've compiled a list of best practices and tips:

1. Stay Informed: Regularly check Velar updates for any changes or improvements to the testnet pool.

2. Engage with the Community: Join our forums and social media channels to share experiences, get advice, and stay connected with other users.

3. Feedback is Valuable: Your input is crucial. Share your experience and suggestions to help us improve the testnet pool.

   
   

FAQs

In this section, we've compiled a list of Frequently Asked Questions (FAQs) to address common queries and concerns regarding the sBTC Testnet Pool:

1. How do I access the sBTC Testnet Pool?

   • Detailed steps are provided in the 'Step-by-Step Guide' section of this blog.

2. Is it safe to use the testnet pool?

   • Yes, the testnet is designed for risk-free experimentation with Bitcoin transactions.

3. Can I earn real rewards on the testnet?

   • Rewards on the testnet are for testing purposes and do not have real-world value.

4. How can I provide feedback?

   • Feedback can be shared on our forums, social media channels, or directly through the feedback option on the Velar platform.

Ready to explore the sBTC Testnet Pool? Begin your journey today by visiting the Velar webapp through this link. If you need any assistance, our community support team is at your service to guide you through the platform. Join our dynamic community on Discord and follow us on social media for the latest updates, discussions, and support.

Embark on your adventure into the future of DeFi with Bitcoin with us!