HOW TO BECOME A HARVEST/USDC LIQUIDITY PROVIDER AND EARN +800% APY

HOW TO BECOME A HARVEST/USDC LIQUIDITY PROVIDER AND EARN +800% APY

By GabrielHaines | Gabriel | 19 Oct 2020


Following our recent Harvest article, there were several inquiries as to how to actually get into the Harvest Uniswap Farming Pool, we decided to explain it in greater detail. Since this is a 50/50 pool, split between FARM and USDC, there is bound to be significant impermanent loss, whether the price of FARM goes up or down. To counter that, there’s a remarkable APY on offer, presently well over 800%. This is a risky pool, with costs to get in, to get staked, to claim and to unstake and exit. This guide will take you through it step by step.Image for post

ADDING LIQUIDITY VIA ZAPPER

Zapper.fi recently added FARM/USDC to their list of available pools, and it’s the easiest, and likely cheapest way to get into the pool unless you happen to have a 50/50 value split of USDC and FARM tokens on hand.

First you click on the invest tab on zapper.fi and then ‘invest’ in the top right and then scroll until you see the FARM/USDC pool, click ‘add liquidity’ on the right. You can add a number of different DeFi tokens and then sign the transaction. It’s a 2 or 3 step process, depending on whether you’ve used zapper before. At the time of our test, entering a 1.5 ETH position cost around $8 in gas fees, but those fees fluctuate constantly. If you’re particularly price-conscious, consider doing transaction on the weekend, as gas prices will be lower typically. In our test case it took around 40 seconds to zap into the pool.

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STAKING LP TOKENS ON HARVEST

A quick refresh in zapper.fi will show your pool liquidity provider position at the top of the page, then you can head over to Harvest’s staking page and there are again two transactions. The first allows harvest to spend your LP tokens (LP tokens are basically receipt tokens that you have provided liquidity) and the second one is to stake your tokens. The two transactions were a total of $2.10. So the total we’re looking at was $10 to get in and stake it. This took around 5 minutes as network traffic was low.

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It’s common for it to take a while for LP token stakes to take a while to show up, but you should be able to track your progress either from zapper.fi/dashboard or the Harvest staking page.

CLAIMING AND EXITING

Once you begin to accumulate some FARM tokens, you can claim any time, but as each claim costs in GAS, it’s preferable to use that feature sparingly. If you want to completely exit the position, you can use the ‘UNSTAKE & CLAIM’ feature of the staking page. Note that this will only return your LP tokens to you and whatever FARM tokens you’ve accumulated during your stake. To fully exit the pool you’d then go back to Zapper and ‘withdraw’ into the DeFi token of your choosing (ETH, Stablecoins, etc.).

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Gabriel
Gabriel

I make crypto content Make sure you are subscribed on Youtube for the latest tutorials, news and interviews Youtube.com/gabrielhaines Follow me on Twitter for memes, hot takes, and more DeFi twitter.com/gabrielhaines

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