[Walk-through] - 1INCH pools and farms - Experience sharing

By HykSs | Crypto Invest | 30 Dec 2020


Today I'll try to share my very recent experience (yesterday) on 1inch and no, I'm not going to send you a scam link to get some money out of your wallet :)

This is going to be a walkthrough on adding liquidity and staking on their farming pools.

 

With ETH gas incredibly high prices I honestly had no plan to do so but well, an opportunity arose.

And it all started with this hot 1inch airdrop. Funnily enough I checked my different wallets a week or so ago and realised none were eligible for the airdrop.

Until yesterday when I remembered one of my first DeFi experience I had done with yearn - I'll try to make a walkthrough for this one too - using coinbase wallet.

Good surprise ! I was eligible for 633 1inch tokens ! Glad I used 1inch for some crypto exchanges around end of october.

 

First step is to claim those tokens and as you already guessed it requires an ETH trx thus going to cost some ETH gas fees. I regularly check ETH gas price on https://www.ethgasstation.info/, I find it user-friendly.

eth-gas-prices

That's today prices at 14:39 HK time but when I checked it was much higher , around 185 if I remember correctly. Even made a joke about it in a Leo post as it would have cost me more than USD 25 to simply retrieve my tokens.

Therefore I actually waited for those prices to go down and yesterday they were around 60-ish gwei and I made a stingy experiment to propose less gwei to perform this transaction.

As you may know the time taken for your transaction to be validated is depending on the amount of gwei you are willing to pay the miners for it.

 

I tried 41 gwei... validated in 3 hours and 15 minutes :D

retrieve-1inch

You got to be patient for good things right ? :)

You can also notice USD 2.25 trx fees, the first but not the last, it will keep adding up.

 

Ok got my tokens let's have a look at what pools/farms they have in stock now.

Apparently 40 different pools, here is the top 10 by APY:

1inch-pools

 

The deal being adding liquidity to a pool and get a LP token of this pool in exchange.

You can see that some of the pools LP token can be staked further for additional interests (the farming icon).

Here it goes for the 1inch farms:

1inch-farms

To be honest I would usually run away when I see 400% APR, but I was in an experimental mood and I just got a gift from those guys (which are ranked 3rd by volume amongst DEX) so let's do it.

 

I opted for the 1INCH/YFI liquidity pool, mainly because I had some YFI tokens sleeping on Binance.

Second transaction to be added to our fees list, transfer YFI from Binance to my wallet: around USD 5 paid in YFI. This was fast though, took a couple of minutes or so.

 

Time to add liquidity to the pool and it looks like this when you click on it:

add-liquidity

Before to be able to add liquidity you have to unlock each of the tokens you are going to add.

That's right, 2 additional transactions with a cost of USD 1.34 each.

That would allow me to add liquidity (finally) but another transaction is needed indeed !

Let's try the stingy approach once again, opting for a 41 gwei transaction fee.

After 50 minutes got a transaction failed because of :

trx-failed

First I thought it was because of the amount of gwei I paid so I tried a second time with the standard amount (61 at that time) but got the exact same error.

2 mistakes in a row costing me an additional USD 1.17 + 1.78 in fees ! Time to make the good decision.

My guess was the amount the automatic max amount set was wrong so I just remove 1-2 USD from the max and clicked again.

Transaction success this time for a friendly price of USD 11.91 (67 gwei) :)

 

Now I have 388.792 LP tokens and it's time to stake it in a farm with 400+% APR.

No need to go through the unlocking step for this one but still need to pay a staking transaction: USD 17.56$ (70 gwei)

 

And that's it, we are all set to earn ridiculously high APR (for the time it goes and with all the risks involved).

Let's just have a quick recap on the fees : USD 42.35.

It will take some time to cover for those fees :D

Keep in mind that DeFi on ETH blockchain is not meant for small amounts.

 

I hope this could help some of you through your firsts steps in DeFi protocols and please do your own research before to invest a penny of your own money.

 

Have a good day.

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HykSs
HykSs

Always hungry for Finance and Crypto knowledge. Proud member of Leofinance community https://leofinance.io/@hykss


Crypto Invest
Crypto Invest

Fond of personal finance and bullish on cryptocurrencies. I wanted to share my first steps in the world of DeFi, CeFi and my experiences/mistakes. Hoping it might help people to avoid traps through my trials and errors.

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