I will show you how to Invest in Defi exchange as a liquidity provider and earn 10000% APR. For this you need to convert your Fiat money into Bitcoin. Used Strike.app to buy $1000 a week on BTC. I bought Bitcoin at $100 above market price from Strike. I have a video of how to use Strike App. It is the same Strike App that used El Salvador users who started using Bitcoin as national currency. Strike App uses Bitcoin Lightning Network to purchase zero fee Bitcoin from US linked bank accounts. I been looking for a way to purchase small amount of Bitcoin without paying those pesky $3 dollar fees on Coinbase or Binance.US exchanges.
Deposit Bitcoin on CoinEx
You will see later why I chose CoinEx exchange. I withdrew 0.01562802 Bitcoin from Strike. I uses Lighting network. So 0.01562802 Bitcoin arrived on CoinEx after 30 minutes. I will provide a link to CoinEx centralized exchange if you do not have one to signup. All you need is setup 2 factor authentication to able to setup withdrawal. You do not have to do Know Your Customer (KYC). You only need that if you going to use this exchange to buy Bitcoin with Fiat. I would not use this because of fees. Since Bitcoin block chain block times are 5 minutes and this funds are send over Lightning network it take 30 minutes to 1 hour to confirm on the CoinEx exchange. Until you get more than 2 confirmation, CoinEx exchange will not confirm your deposit.
Exchange Bitcoin to Matic
I am going to use centralized exchange CoinEx to do a Limit buy MATIC Tokens from Bitcoin I received. Reason I use Limit order is because fees are less for maker order which are limit orders. Taker order or market orders are always little higher on centralized exchanges. In CoinEx it is 0.2000% for fees on buy order. When you want to withdraw MATIC or Polygon tokens, using CoinEx the withdrawal fee is 0.01 MATIC. 0.01 MATIC = 0.017 USD. Little over 1 cent in fee for withdrawal.
Sell to MATIC at 0.2% fee on CoinEx. I placed a limit order to buy MATIC tokens. It is very easy to use CoinEx exchange. Make sure you are on Spot tab because you are not using margin to buy. Pick MATIC/BTC exchange pair on the bottom.
Place a limit order to sell Buy MATIC.
Withdraw MATIC token to Polygon Network MetaMask Wallet
Login to Web2.0 Metamask wallet. Select MetaMask Network. Copy the MetaMask's Polygon Wallet address shown on the top. Copy this address. Now go back to CoinEx withdrawal tab. Make sure you select the Matic Network. DO NOT Select Ethereum network (ERC 20). Your coin will be lost if you do this. After selecting the Matic network, paste the address you copied from MetaMask wallet. Click confirm. You need to enter 2 factor authentication to confirm withdrawal. You also need to confirm withdrawal with Clicking on confirmation email you get from CoinEx. After you click it withdrawal will be initiated. One great advantage of CoinEx is it only charges 0.01 Matic or 1.7 USD cents at $1.7 MATIC price of shooting this video. Now, within 5 minutes your MATIC tokens will arrive in your MetaMask wallet.
Finding Defi Investment on Kogefarm
Now Go to https://kogefarm.io/vaults. Find pools that have reasonable funds invested in. At least greater than $1000 Total value invested in and provide very high APR that is over 100%. Make sure to pick tokens pairs that does not go to zero. If one token in the pair is stable coin that is better. If both tokens are stable value pairs that is even better. Usually both tokens stable value gives very low APR. I found WEXPOLY-USDC liquidity pair. Buy WEXPOLY with 0.3% swap fee on Original DEX that coin is invested. Remember Kogefarm.IO is a pool aggregator. It is not the original listed exchange. Buy USDC with 0.3% swap fee.
- WEXPOLY fully diluted marketcap is $589k and max supply is 2.5 billion with trading coming from WaultSwap and QuickSwap on Polygon.
COLLAR (PolyPup finance) marketcap $35k and fully diluted marketcap $36 million at max supply 100 million and total supply is 98k. - DINO fully diluted marketcap is $32 million with marketcap of $13 million with total supply is 133 million and circulating supply at 56.9 milion.
- WEXPOLY fully diluted marketcap is $589k and max supply is 2.5 billion with trading comming from WaultSwap and QuickSwap on Polygon.
COLLAR (PolyPup finance) marketcap $35k and fully diluted marketcap $36 million at max supply 100 million and total supply is 98k.
Remember to use marketcap respect to ETH and Bitcoin to evaluation tokens potential. One cannot come even close to those top 20 tokens.
Swap to Tokens on Wault.Finance
Since I decided to invest on WEXPOLY-USDC liquidity pair. I need to Buy WEXPOLY with 0.3% swap fee. I used the original DEX where WEXPOLY is listed for Swap. In this case it is listed on Kogefarm.IO as Waulth at app.wault.finance. I bought half of my 582 Matic token or 290 Matic WEXPOLY and other half USDC with 0.3% swap fee. I notice I can buy USDC from Matic on Metamask as well. But the fees are lot higher like 4 dollars vs 0.5 MATIC on WEXPOLY Dex. I chose to use the less fee WEXPOLY Dex. I end up buying both tokens from the WEXPOLY dex. Also, sometime DEX tend to reward their users with token airdrop as well. So that make me bias to use the WEXPOLY DEX in this case instead of MetaMask wallet swap. As usually MATIC gas fees on Polygon is cents compare to hundreds of dollars in Ethereum. That is why I hate to do any DEFI dabbling in Ethereum networks based Uniswap or Sushiswap. However, I would use different layer 2 Ethereum like Arbitrium on Uniswap and Sushiswap or AVAX or Polygon networks. By the way you can do other networks besides Ethereum on Uniswap and Sushiswap as well.
Providing Liquidity to Liquidity Pair on Kogefarm.IO
After I purchased my two tokens on interest on Polygon Network in this case WEXPOLY and USDC. WEXPOLY is a WaultSwap Polygon token coin just like UNI is for Uniswap. Always Exchange tokens have utility because all DEX promote their tokens and has lots of demand because Swaps are done on it. They can burn token supply and make it deflationary because they control it. In my case, I deposited $500 worth WEXPOLY and $500 USDC respectively. I click on add liquidity it takes me to the Waultswap's swap.wault.finance liquidity pool. You first need to deposit first token. Click Approve USDC. After it gets approved with minuscular Matic gas, You need to deposit the second WEXPOLY tokens with very small gas fee (under 1 cent range). Click Approve WEXPoly. Finally click Supply to approve the Liquidity pair with another minuscule gas fee. After you get 10 confirmation or more from MetaMask, your funds on USDC and WEXPoly is converted to Liquidity Pool toke called WLP In my case it is 0.0304 WEXPOLY-USDC LP tokens.
Yield Farming on Kogefarm.IO
Next step is to actually the step that do yield farming on Kogefarm. Kogefarm is a liquidity aggregator. Every few minutes they compound interest and reinvest in it. Now go back to kogefarm.IO/vaults. Select your WEXPOLY-USDC liquidity pair with 13.9k APR as of shooting this video. Click on Enable vault. This is where you hand over Kogefarm access to this tokens for yield farming. You do not want to hand over tokens to shady Defi exchanges where they will do a rug pull and run with your money. Now you need to go to Deposit funds. Click on 0.0304 WLP tokens and deposit it. Pay minuscule gas fee and your funds now appear on total staked as well as user staked funds. In my case it say I have $993.75 as of shooting this video staked. According to kogefarm.io my daily return is 1.37% and source farm APR is only 486.22%. Where do you get this kind of APR from any bank? Banks tend to steal your money with fees. This is the beauty of Defi investing.
Risk Associated with Liquidity Providers
I need to describe risk associated with being liquidity provider. One thing is impermance loss. In my case WEXPOLY token could drop in price. It is called impermance loss. Next thing is Kogefarm.IO pull a rug pull or it get hacked and funds are stolen. Your loss is 100% that case. Always use Defisafety score from Defisafety.com as a guide in comparison to Uniswap to see your DEX safety score to make a assessment of your DEX. In my case, I plan on pulling out my principle after I make it into my Metamask wallet and keep the rest. That way my risk is near zero. I recovered my initial investment.
