Today, I want to write about my second investment in another decentralized financial project. After I made a first little baby step by lending my stablecoins through Compound, I was kind of hyped and used the momentum to keep going. My intention is to compare the return of my lending investment to another DeFi project. As I used Uniswap as well to change Ethereum to DAI, I decided I will look deeper into investing into providing liquidity to one of these pools.
Just by looking at the top-performing liquidity pools run by Uniswap I couldn't really make a decision about what might be a good pool to go with. Luckily I came across this site: https://zumzoom.github.io/analytics/uniswap/roi/
So there is a lot of information available about the performance of each liquidity pool. As I have seen even some pools and tokens I never used I took the time to look at those projects as well. Finally, I decided to go with the liquidity ETH-DAI on Uniswap.
Instead of using zerion.io this time, I wanted to try another platform called DefiZap.
The purpose of DefiZap is pretty much to save transaction fees and time when it comes to converting tokens and add them to the correct smart contract.
DefiZap has already the correct service setup. It is nicely designed so even beginners get an understanding of what is going to happen by using this 'Zap'. Overall using DefiZap will save me 3 on-chain transactions.
After I added my tokens I can now use any management tool to check the performance.
I look forward to reporting how providing liquidity turns out for me. I hope you enjoyed reading about my thought process. This time with some more pictures as well. Thanks for reading.