How to earn up to 50% APR being Phantom’s liquidity provider — With No Impermanent Loss

5 min readDec 13, 2021

Users struggle to find a better deal or a safer way to grow their wealth in the entire DeFi ecosystem. But due to the inherent volatility of crypto assets, Impermanent loss seems inevitable towards high returns. On the other hand, staking stablecoins is low-risk, but the rewards are very limited.

And now, Phantom provides a staking pool for pUSD-USDT LP Tokens, giving liquidity providers a safer way to earn up to 50% APY rewards with almost no impermanent losses.

If you’re seeking a profitable place to park your stablecoins to earn consistent yield with the least amount of risk, take a closer look at the Phantom pUSD-USDT liquidity pool (of PancakeSwap).

What is pUSD?

pUSD is a synthetic stablecoin asset on the Phantom platform, whose value tracks that of the US Dollar. Users can mint pUSD by staking PHM tokens on Phantom. It can be used to trade against NFT synthetic assets such as pBAYC, pPUNKs on the Phantom Exchange. The demand for pUSD depends on the demand for trading synthetic assets on the Phantom platform.

How does the staking work?

Let’s say Alice has 1000 USDT in her wallet. To add liquidity and earn rewards on Phantom, she can split her holding into 2 equal portions (500 USDT each), and then:

  1. Buy 500 pUSD with 500 USDT on PancakeSwap

2. Pair up the 500 pUSD with the rest 500 USDT and add liquidity on PancakeSwap.

3. Stake pUSD-USDT LP Tokens on Phantom and start to generate PHM rewards.

Alice can claim the rewarded PHM at any time and choose to:

  1. Sell PHM on DEX for profit, or
  2. Use PHM to create more pUSD for liquidity mining

For a detailed step-by-step guide, please see the Tutorial section in this article.

More Profits with zero Losses

For more than a month, the liquidity mining return on pUSD-USDT has been at or above 50% APY. And Because pUSD is a stable coin whose price follows the USD, it does not suffer significant erratic losses as a result of large price movements, as the USDT-BTC pair does.

If you’re seeking a profitable place to park your stablecoins to earn consistent yield, take a closer look at Phantom.

A step-by-step guide: Liquidity mining with Phantom

1. Buy pUSD on PancakeSwap

First, you will need to obtain pUSD from PancakeSwap.

Note: If you are a PHM holder, you may also build pUSD on Phantom to obtain pUSD.

2. Add pUSD-USDT liquidity on PancakeSwap

1) Go to page and scroll down to the Farm section. To add liquidity, click the “…” button and then select “Provide.”

2) After clicking the “Provide” button, you will jump to PancakeSwap, where you can form USDT and pUSD into pairs and then add liquidity.

Enter the amount or simply click MAX to have the quantity filled automatically.

3) Click “enable USDT” and confirm in the wallet.

Then do it again with the “Enable pUSD” button and confirm in the wallet as well.

4) After enabling USDT & pUSD,Click“Supply” to add liquidity.

Confirm Supply and confirm in your wallet.

You will have LP Tokens in your wallet after successfully adding liquidity, and you can return to Phantom to complete the final Staking step.

3. Stake USDT-pUSD LP tokens on Phantom

1) Go to, approve & stake your USDT-pUSD LP tokens.

2) Click Approve and confirm in the wallet.

3) Then click the “Stake” button and confirm in the wallet.

4) When you see the window below, it means you’ve completed all steps for mining.

So there you have it: Stake your stablecoins in Phantom and let your crypto assets work for you.

More rewards, greater stability, and say goodbye to impermanent loss.

About Phantom Protocol

Phantom Protocol is a next-generation synthetic asset and NFT trading solution incubated by Conflux and invested by LD Capital, NGC Ventures, Kyros Ventures, Gate Labs, DFG, MXC among others.

Phantom enables individuals to create synthetic assets (pAssets) in a decentralized manner, allowing more people to participate in a diverse range of investments by lowering entry barriers.

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