One thing I’ve learned lately is that once you try an Ethereum L2 or sidechain, it’s hard to unsee the future with nearly instant transactions, no wait times, and nearly $0 in gas fees. In that spirit, I recently discovered EasyFi, a Layer 2 DeFi lending protocol for digital assets built on Polygon, “a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.”
At Zapper, we’ve also been researching how to help DeFi users beat high gas by moving to L2. As a result, we recently unveiled a new feature called Zapper Bridge, to help solve one major roadblock to L2 adoption–understanding how to migrate funds to L2 and/or sidechains. With Zapper Bridge, you can now move funds in a single click like you see below.
Once you know how to migrate some stablecoins to Polygon/Matic, one can start benefiting from using EasyFi to lend stablecoins and earn high interest rates from borrowers, while paying a fraction of the gas costs found on L1 with major lending protocols like Aave or Compound. In fact, the rumor is that Aave will be moving some liquidity to Polygon/Matic eventually so by exploring this, you’re getting ahead of the curve.
While EasyFi is still in the early stages of bootstrapping liquidity, they just launched a new yield farming program on March 9th that will run 180 days, meaning we have time to benefit from this program. Somewhat similar to Compound liquidity mining, all one has to do is lend DAI, USDT, or USDC and stake the eDAI, eUSDT, or eUSDC to earn EASY governance tokens (price today around $19.38 having launched in October 2020).
How to Earn Up to 105% APR Lending Stablecoins on EasyFi
Before we get started, please be aware of a few major risks.
- Smart contract risk is always my top concern. As far as I know, EasyFi is unaudited and I would keep a lookout for potential Protocol Cover by Nexus Mutual in the future as EasyFi grows their liquidity.
- Interest-earning stablecoins like eDAI, eUSDT, and eUSDC carry a similar risk to any stablecoin or pegged asset on L1 that could de-peg and cause systemic issues for users.
- Be aware the APRs I quote below will likely change by the time you read this. The APR is very dependent on the price of EASY and the liquidity participating in these rewards programs.
- As always, this is not financial advice.
Here’s how to lend stablecoins on EasyFi!
1 – First, one will need to set up MetaMask to be able to interact with the Matic Mainnet. If you’re new to this, check out this guide by QuickSwap or watch this recent DeFi Class I did on Yield TV about how to migrate funds to Matic and set up MetaMask.
2 – Then flip the network from Ethereum on MetaMask to Matic to interact with EasyFi.
3 – Next, go to the EasyFi Farming tab under Liquidity Farming to check out the estimated lending APR on eDAI, eUSDT, eUSDC to decide which token(s) to deposit into Polygon or to swap for on QuickSwap. Your wallet has to be set to Matic network to see these farming rates on EasyFi.
4 – If one has no assets on Polygon, go to Zapper.fi/bridge and transfer any token from Ethereum L1 to Polygon. You can even start with a non-stablecoin token like ETH, and Zapper Bridge will swap it for your desired token on Polygon. Zapper will also send 0.1 MATIC to your Polygon/Matic wallet to get you…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
