It’s been another week of choppy crypto markets so while everyone’s debating up or down, here’s a tutorial to easily participate with stablecoins earning high yield on Polygon with low fees!
Dfyn is a newer AMM forked from the Uniswap v2 code, but launched on the Polygon blockchain where you can transact in seconds for pennies per transaction. It does not offer the same security and decentralization as Ethereum, but if you’re already familiar with DeFi on Polygon, this is yet another application seeing lots of traction. I don’t risk all of my portfolio on Dfyn or Polygon but I’m willing to try new apps that provide enough reward to justify the risk.
Dfyn currently boasts about $181M in liquidity with a record day of $73M in trade volume!
Like other AMMs, Dfyn has a simple liquidity mining program where they reward liquidity providers (LPs) with their governance token DFYN, in exchange for adding liquidity and staking the LP token. The 3 farms I identified for this tutorial are available here in the Farms tab under Popular Farms:
- UST-USDT at 60% APR
- DAI-USDT at 58.65% APR
- USDT-USDC at 41.53% APR
Btws, there are other farms earning as high as 500% APR but I want to simply focus on these lower risk, high reward stablecoin farms.
How to Earn Up to 60% APR with Stablecoins on Dfyn
Before we get started, please be aware of a few major risks.
- Smart contract risk is always a risk.
- Oracle failure could also contribute to a loss of funds.
- The quoted 60% APR is likely to change by the time one hops into this tutorial. Also, the trading volume and the market price of DFYN reward tokens are likely to change.
- Polygon is a less secure blockchain than Ethereum. Be aware it is not comparing apples to apples to compare DeFi on Polygon.
- As always, this is not financial advice.
Here’s how to get started!
1 – Depending on which farm appeals to you (DAI vs USDT vs USDC vs UST), one prerequisite is we will need stablecoins on Polygon. Go to zapper.fi/bridge and specify sending one of these stablecoins from Ethereum to Polygon.
2 – Whenever the Ethereum transaction confirms, it will take 7-8 mins on average for the tokens to show up in one’s Matic wallet, which is the exact same 0x address as one’s Ethereum wallet. Matic will deposit 0.01 MATIC for first time depositors, which is all you need to pay the gas fees for many Matic transactions. On Polygon, MATIC is used to pay fees like ETH is used on Ethereum, except it’s dirt cheap.
3 – To view one’s Polygon/Matic wallet on MetaMask, if one has never used Polygon/Matic, go to chainlist.org, search Matic Mainnet, and click the one on the left below to Add to MetaMask.
4 – Flip the Network in MetaMask to Matic instead of Ethereum so one can transact on Polygon/Matic.
5 – If you need MATIC to pay fees and for some reason you don’t receive some from bridging to Polygon using Zapper Bridge, go here to claim a free 0.01 MATIC.
6 – Once your stablecoins arrive on the Polygon, you’re ready to become an LP on Dfyn!
7 – Go here to the Dfyn Farms page.
- In this example, I check the APRs and choose to use USDT + UST to become an LP to earn an estimated 60% APR at current market prices, liquidity and trading volume.
- Dfyn LPs are subject to impermanent loss like any Uniswap LP but with stablecoins, IL is near 0.
8 – If you need to swap…
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.
