In April 2020, a new DeFi team called PieDAO launched a new DeFi offering similar to an ETF (exchange traded fund). In traditional finance, an exchange-traded fund (ETF) is a popular type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold throughout the day on stock exchanges.
Pie smart pools are managed by Balancer which enables up to 8 tokens with weighted allocations in a single pool. PieDAO governs the readjustment of weights and removal/adding of tokens. Providing liquidity to one of these Pies gets you tokenized exposure to the underlying assets and additionally generates market-making fees from the Balancer ecosystem utilizing the liquidity in these pools to perform token swaps.
Currently, there are 3 Pies available at pools.piedao.org (buying routes you back to Balancer):
DEFI+S offers diversified exposure to the following small-cap DeFi related tokens on Ethereum.
BTC++ offers diversified exposure to the following tokenized BTC on Ethereum.
USD++ offers diversified exposure to the following stablecoins listed below on Ethereum.
How to Add Liquidity, Stake, and Earn Rewards with PieDAO
60,000,000 DOUGH v2 tokens, which is 60% of the total supply of governance tokens for voting on tokens/weights of Pies in PieDAO, will be locked in a vault out-of-circulation and assigned to the DAO to promote its development overtime through liquidity mining programs and other incentives.
Here’s how you can provide liquidity to earn DOUGH:
1 – Go to pools.piedao.org/
2 – Decide on which of the 3 liquidity pools on Balancer you want exposure to and click Add to Pool
3 – Add liquidity via the Multiple Asset or Single Asset deposit on Balancer for 1 of the 3 pools
4 – Now go here to stake the Balancer LP token for that pool: pools.piedao.org/#/stake
5 – In the STAKE section, input the amount of LP tokens to stake (2 transactions).
6 – To Claim DOUGH earned, go to the same Staking dashboard for the pool you’re in, and click Claim whenever you like, but I would consider the gas cost before claiming.
Congratulations! You just empowered one of the most popular finance mechanisms reimagined as a p2p lego in DeFi on Ethereum. By providing liquidity, you gain exposure to one of the 3 ETF-like Pies and enable greater liquidity for others to buy or sell such Pies.
For more DeFi video tutorials and insights, follow me @DeFi_Dad on Twitter and subscribe to DeFi Tutorials with DeFi Dad on YouTube at defidad.com.
Disclaimer & Risks: This is not financial advice. You should approach all DeFi applications, wallets, protocols, and tools with caution. Please be aware there is always risk in using DeFi, especially technical risks (ie smart contracts bugs), financial risks (ie liquidity crises), and potentially admin risk (admin key compromise, governance vulnerabilities). Also, there’s risk of any pegged asset like a stablecoin de-pegging.
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.
