KOKOCoin (KKC) are used for the payment since the ETH paid by the client goes through the KOKOCoin (KKC) liquidity pool on Uniswap where it is exchanged for KOKOCoin (KKC). Here’s how you can join this liquidity pool and collect fees on trades from it.
Joining the KOKOCoin (KKC) Uniswap Liquidity Pool
Before we get to the part where we explain how you join the KOKOCoin (KKC) pool, we first need to clarify a few things about how Uniswap works.
How Uniswap Works
First of all, the pool works in a very simple manner i.e. it has a supply of ETH and a supply of KOKOCoin (KKC). The ratio between the two determines the exchange rate.
Now, anyone who wants to join the pool needs to supply both ETH and KOKOCoin (KKC) in order to keep the exchange rate the same. For example, if the current exchange rate when you are joining is 1 ETH equals 15,000 KOKOCoin (KKC), and you want to join with 10 ETH, then you need to supply 10 ETH and 150,000 KOKOCoin (KKC). Simple as that.
Secondly, the exchange rate varies as people purchase ETH/KKC from the pool. For instance, when someone buys a product on kokoshungsan.net, they will insert ETH into the pool and take KOKOCoin (KKC) out of it. This will switch the ratio more in favor of KOKOCoin (KKC), making it more expensive when traded for ETH since its supply has decreased and the ETH supply has increased.
Lastly, there is a 0.3% fee on trades from the pool, which pool participants collect whenever they withdraw funds from. As noted by Uniswap:
The stake in the pool’s fee is determined by your stake in the pool itself i.e. the more of the overall ETH and KOKOCoin (KKC) you own, the more you will get from the fees collected by the pool. And that’s pretty much how Uniswap works.
Joining the KOKOCoin (KKC) Pool
Now, joining the pool is very simple. You just need to have MetaMask installed.
Of course, make sure you have some ETH and KOKOCoin (KKC) loaded in your MetaMask wallet. Once you have that covered, click on the Select a token button and then search for KOKOCoin (KKC) by entering its smart contract address i.e.0x1fdde7525783c36153a8a6b618e2b5210a23ce37
Once you see it, select it, and the current exchange rate will be displayed. This will help you determine how much ETH and KOKOCoin (KKC) you want to join with. In your case, there will also be an Unlock button next to the Select a token button.
This button is used to allow Uniswap to trade KOKOCoin (KKC) on your behalf. This is a pretty standard functionality of ERC20 tokens when dealing with exchanges.
Once you approve Uniswap to spend KOKOCoin (KKC) on your behalf, just enter the amount of ETH you want to join with and the amount of KOKOCoin (KKC) you have to provide will be automatically filled in based on the current exchange rate.
Finally, click the Add Liquidity button and submit the MetaMask transaction. Once it is confirmed, you will be able to see your stake in the pool. And that’s pretty much all there is to it.
We are currently looking into ways of listing KOKOCoin (KKC) by its label on the exchange so people won’t have to search for the smart contract address every time they want to find the pool.
Uniswap have a policy of listing tokens by their labels only if they are in the top 250 on CMC. While KOKOCoin (KKC) is not in the top 250 yet, we are looking into other ways to list KOKOCoin (KKC) by its label and make it easier for our community to find the liquidity pool.
Once that happens, we will update this guide accordingly. Until then, feel free to join the KOKOCoin (KKC) Uniswap liquidity pool at any time using the token’s contract address.