While the crypto markets are down 50-90% across tokens, we can all agree this is either an opportunity to “buy the dip” or we’re simply stalling before more bearish times hit. Regardless of that choppy price action, DeFi just keeps shipping new innovations and often these new products reflect new ways to help us capture yield in these markets. Even though I’d rather farm tokens and watch them go up in price, right now I’m simply debating whether to hold more stablecoins or deploy capital to buy volatile assets that act as a SoV long term like ETH or WBTC.
For those of us who have longer term investing timeframes or look at this as an opportunity to buy the dip, DeFi has delivered yet again thanks to Curve recently launching an algorithm and new liquidity pool for exchanging volatile assets–the Tricrypto pool made up of ETH, WBTC and USDT.
How to Buy the Dip, Maintain Stablecoin Exposure, and Farm Yield
The opportunity in today’s tutorial takes advantage of 3 core DeFi legos:
- Curve: an automated market-maker (AMM) where one can provide liquidity and earn trading fees + CRV governance tokens
- Convex Finance: A protocol dedicated to optimizing staking Curve LPs to earn maximum CRV tokens
- Harvest Finance: An application providing vaults for automating taking profits and earning yield
With the new Curve Tricrypto LP, one can gain almost exactly 33% ETH / 33% WBTC / 33% USDT exposure while earning a combined 30.16% APY thanks to 3 forms of yield:
- Trading fees in Curve
- CRV and CVX auto-harvested for profits
- iFARM, which earns you interest automatically if you choose to hold it
Btws, there are other farms earning as high as 200% APY in Harvest but I want to simply focus on this farm as it allows a DeFi investor to essentially “buy the dip” while earning yield on an LP composed of ETH, WBTC, and USDT.
How to Earn Up to 30% APY with the Curve Tricrypto LP Staked in Harvest Finance
Before we get started, please be aware of a few major risks.
- Smart contract risk is always a risk–in this case across Curve, Convex, and Harvest.
- Oracle failure could also contribute to a loss of funds.
- Pegged assets like WBTC or USDT can de-peg.
- The quoted 30% APR is likely to change by the time one hops into this tutorial. Also, the trading volume and the market price of reward tokens are likely to change.
- As always, this is not financial advice.
Here’s how to get started!
1 – Go here to Zapper to invest with any token, but for me, ideally stablecoins so I can “buy the dip” for ETH + WBTC and hold 33% ETH / 33% WBTC / 33% USDT in the Curve Tricrypto pool. Follow the prompts to Approve and then Confirm depositing into the LP.
2 – Now go here to the Harvest Finance farms page and find CRV:TriCrypto. Hit “MAX” and then “Deposit” but be sure to leave “Stake for rewards” checked for staking to earn maximum yield.
3 – When you’re ready to claim iFARM rewards on top of the profits auto-harvesting to the staked TriCrypto LP, hit “Claim rewards” to claim iFARM. Your iFARM earns interest automatically, so you do not need to stake it.
That’s it! We’re now buying the dip for ETH and WBTC, maintaining some stablecoin exposure, while earning high volume trading fees in one of the most liquid AMMs in DeFi on Ethereum!
For more DeFi video tutorials and insights, follow me @DeFi_Dad on Twitter…
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.
