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Earn High Yield on Optimism with USDC/DAI

DeFi Dad June 1, 2022
high yield on optomism

Earn High Yield on Optimism with Uniswap V3

Before we get started, this is not a recommendation or endorsement to buy UNI, OP, or any token mentioned.

Yesterday, the core team at Optimism, a leading Layer 2 scaling solution for Ethereum, launched claiming for their native governance token, OP. It has created a new frenzy of activity on Optimism with many bridging to and from Ethereum Mainnet, plus other L2s. 

Given the retroactive distribution of OP tokens, there’s a major increase in trading volume on Optimism L2, especially on Uniswap, which hosts a few major pools (OP/WETH and OP/USDC), that have accrued $129M in trade volume the last 24 hours. Uniswap trading volume on just Optimism L2 has gone parabolic, from $9M a few days ago to $240M in daily trade volume (see chart below). As a result, popular stablecoins are also being traded, such as USDC and DAI, which saw an increase of almost 400% for USDC/DAI daily trading volume.

optimism

This is just the beginning of a major migration of liquidity from Ethereum L1 to new emerging L2s like Optimism, presenting lots of new DeFi opportunities with well established cryptoassets such as USDC and DAI stablecoins. In the following tutorial, I’ll walk through how I can earn an estimated 35% APY as a liquidity provider of just USDC + DAI in Uniswap v3 on Optimism.

How to Earn Up to 35% APY with USDC/DAI on Uniswap on Optimism

uniswap v3

Before we get started, please be aware of a few major risks. 

  • Smart contract risk

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Categories: Layer 2s, DeFi
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