Before we get started, this is not a recommendation or endorsement to buy HND or ONE.
When you first discover DeFi, one of the core use cases you cannot escape is borrowing and lending. What’s changed dramatically over the last year is that those lending and borrowing markets have expanded beyond Ethereum to countless EVM-compatible chains like Fantom, Polygon, Avalanche, and now Harmony. We take lending and borrowing for granted in today’s DeFi markets with over $250B in deposited assets but this is the use case that made all else possible, by allowing anyone holding assets they believed in long term, to leverage them to borrow liquidity to earn yield elsewhere.
In the late summer of 2021, a new protocol launched aiming to aggregate multi-chain borrowing and lending liquidity called Hundred Finance. Hundred was created by a well known anonymous developer called vfat who became well known for quickly spinning up tools for tracking and estimating yield generated by yield farming protocols. This is a perfect example of how anonymous founders/contributors have earned more credibility than other doxxed founders who have contributed less to the DeFi community.
Hundred Finance aims to play a central role in “delivering the freedom to earn yield and borrow assets to a growing number of users in a trustless, secure and economically efficient manner.” The TLDR is you can lend or borrow at the best available rates on Ethereum, Arbitrum, Fantom, or Harmony by using Hundred, and simultaneously earn HND governance tokens when supplying assets.
Hundred Finance users are able to select the network they wish to use from the main page, and it automatically triggers the selection of the correct network by their Web3 browser wallet (ie MetaMask). Due to different protocols and different liquidity on different chains, the assets, interest rates, and transaction costs may differ.
What’s familiar though is the liquidity mining rewards which allows lenders on Hundred to earn HND tokens by staking their hTokens, which is what I’ll cover in today’s tutorial.
How to Earn Up to 78% APY with UST on Hundred Finance on Harmony
For anyone holding stablecoins across Ethereum, Arbitrum, Harmony, or Fantom, Hundred is the perfect place to maximize earning yield. Today, I’ll highlight lending UST (and earning HND rewards) for a net 78% APY. Over the last few months, I’ve also focused on lending stablecoins on Fantom via Hundred Finance and found rates as high as 60-70% APY.
Before we get started, please be aware of a few major risks.
- Smart contract risk in Hundred Finance and underlying DeFi protocols integrated on Harmony
- Oracle failure could lead to an exploit
- Systemic risk in DeFi composability
- Pegged assets such as stablecoins can potentially de-peg.
- Estimated HND rewards can go up or down depending on the amount of competing liquidity
Here’s how I get started!
1 – First, I’m going to need ONE to transact (pay fees) on the Harmony network if I’m new to using Harmony Network. I’ll need to buy some ONE which is actually the hardest step in this tutorial. I’ll need to find a CEX on this list that I have access to, or use another fiat/crypto on-ramp to buy/send ONE to my Harmony wallet (MetaMask).
2- Once I’ve bought some ONE to pay transaction fees, I can go to the Hundred dApp and Connect my…
