Yield Farming is a great way to let your assets work for you. For many of us the major concern with yield farming may be gas fees. Even if you earn some hundred or even thousand percent APY it’s not worth anything if you have to spend several bucks per day in transaction costs to compound your earnings - if you don’t farm with thousands of dollars in crypto.
At least for me exactly this is the case. I’m a student, interested in crypto and I invest regularly. Nevertheless I have ‘only’ around one thousand bucks of net worth in crypto and I don’t want to invest all of it in yield farming. So what do to if you want to dip a toe into DeFi and yield farming but paying gas fees on ETH or BSC makes the whole experiment pretty unprofitable?
The solution - at least for me - is Polygon/Matic Network. The gas fees over there are damn cheap and yield farming on Matic is still a pretty new development which means yields are sky high (and that there is pretty much scam around).
A promising and legit farm I found is Polycat. The platform launched at the beginning of May 2021 and uses a Goose Finance fork which means the code has been tested over and over (and your funds should be really secure there). If you want you can dive deeper into the details over here.
The platform quickly became one of the biggest players on MATIC and is already really popular:
Polycat is based around their own token $FISH which is capped at 3,000,000 maximum supply. On the platform you have several options to earn $FISH tokens and interest on your assets:
- Vaults: Vaults are auto-compounding which is great because you don't have to manually compound your assets. In addition you get paid what you deposited - so you do not necessarily have to earn $FISH if you don't want to. APYs reach from 11% to some thousand or even millions of percent. You should definitely have a look yourself to evaluate this investment option on your own.
- Farms: On Farms you can stake LP-tokens you receive in return for providing liquidity on different DEXs. You can only stake LP tokens for $FISH-MATIC pairs earning abut 400%-500% APR paid in $FISH at the time of writing. If you compound daily - which you have to do manually using farms - this results in 10K% APY upwards. Of course rates are likely to drop over the next months so you should get in early if you consider this investment a good one! Manually compounding in this case means harvesting your gains, exchanging one half into MATIC (or having some MATIC in your wallet for this purpose), providing the new won liquidity in the LP and stake the LP-tokens you get on Polycat. It takes a few minutes but costs like nothing (thank you MATIC net - I love you, really!).
- Pools: Last but not least Polycat offers pools where you can stake a single asset to get $FISH in return. In my opinion APRs/APYs are pretty decent the only point I don't like here: 4% deposit fees - except for $FISH. Pools are also NOT auto-compunding. But manually compounding is even easier than using Farms.
Last but not least I want to explain how to get your funds over to MATIC chain which is still a little bit of a hustle. Sadly most exchanges like Binance do not support withdrawals directly to MATIC yet (but they announced to do so in future). So what do you have to do?
First of all you have to withdraw your funds ideally to BSC. Then you got to bridge them over to MATIC. There are many bridges out there. I personally used evodefi which was a fast and pleasant experience which costs only 0.5% fees. You got to bridge at least 50$ using evodefi and the only supported stablecoin in USDC - so be aware of this. You can also bridge ETH using the platform.
Now you got your funds over at MATIC you can either directly stake them in one of Polycats Pools or you swap some part of your funds into $FISH and profit from the decent yields of Farms or Vaults. You can swap your funds for example on Quickswap which is what I did. Watch out to use the correct token contract address - for example via using the links on which are embedded in Polycats menu.
Yield Farming on MATIC seems like a great field for experimentation to me. Beneath some pioneers there is also much scam out there - so watch out if you want to invest. You should definitely check tokenomics, fees and reviews before investing. Polycat is really transparent in these terms and seems to be a safe call for me. They accumulated huge sums of TVL (total value locked) over their first month showing a great trust and potential in the project.
If you are interested definitely DYOR! Polycat has some great resources - a blog on medium, a github documentation and some audits - so check them out.
I would really appreciate if you decide to invest to use my referral link. It costs you nothing but supports my work a lot.
As always: thank you for reading, liking and tiping.
Have a good time farming!
PS: I’m not a financial advisor. DO YOUR OWN RESEARCH before investing your money and never invest money you cannot afford losing!