How to Compound Your Sushiswap ETH-USDT Liquidity Provider Tokens
Sushi Chef to the Moon

How to Compound Your Sushiswap ETH-USDT Liquidity Provider Tokens

By orbithunter | Orbit's Journal | 7 Feb 2021


Do you have Sushiswap ETH-USDT Liquidity Provider tokens just lying around and waiting for those transaction fees to accumulate? What if I tell you there is a way to increase their value. You can do this by being a farmer at Harvest Finance. Continue reading below if you are interested.

What is Harvest Finance?

Farmer CHAD

Harvest Finance is a yield farming strategy aggregator that automatically compounds the value of a deposited asset (in this case your SUSHI ETH-USDT LP). What you do is deposit the asset on the stake dashboard and you will receive fASSET tokens which will grow in value over time. Harvest Finance automatically compounds the underlying asset for you. You can learn more by reading here.

By using Harvest Finance, you get these two advantages

1. You can counteract some of the impermanent loss, which is the consequence of a difference in price movement of the two assets (in this case, ETH and USDT).

2. You also save in gas fees in the process because the Harvest Finance smart contracts do all the 'hard work' of compounding.

Should I deposit my SUSHI ETH-USDT tokens then?

 

I would suggest that it is a good option for you if you already have SUSHU ETH-USDT tokens already lying around. Adding liquidity now would cause you lots of gas fees which is very high at this moment. I would suggest that you also have a very large amount of liquidity available to make it worth it.

How do I FARM my SUSHI ETH-USDT LP tokens?

 

1. The first step is to have SUSHI-ETH-USDT LP tokens on you. Just like what I said before, it is better if you already have the liquidity tokens before. If you are still insistent, you can check this article for a step-by-step process. <<Click Here>>

2. Open Harvest Finance on your browser. Make sure you have a web3 wallet. Once you see the Main Dashboard, click the 'Stake' menu option on top.

Harvest Finance Dashboard

3. You will now see farming strategies available for staking. Find the 'Sushiswap' box and click it.

Harvest Finance Stake Dashboard

4. Under this tab, you will see the available Sushiwap Liquidity Strategies available. Click on the USDT-ETH 'Stake' Button.

Sushiswap Liquidity Farms

5. After clicking, you will the your unstaked SUSHI ETH-USDT LP tokens. I am already farming so mine is already zero. Type the amount you like to stake on the number box (marked in red). After that, Click the 'Stake' button below (marked in blue). You will have to pay for gas fee in order to stake.

SUSHI ETH-USDT LP Pool

6. Viola! You are now automatically compounding your LP tokens. You will receive an fASSET which will represent your share of the pool. You will also be receiving FARM tokens together with the compounded LP tokens. 

How much is the Farming Strategy earning so far?

SUSHI ETH-USDT LP Share Price

As of writing, the share price for 1 fASSEt of SUSHI ETH-USDT LP token is approximately 1.02416. This means that all the LP tokens deposited on this pool increased by 2.416%. All of this is happening automatically by a means of a smart contract. Not bad. 

 

As you can see on the Main Dashboard, there are other strategies that you could also try. I chose this because ETH-USDT is a popular and stable liquidity pair and the rewards for this strategy will probably continue for a longer time compared to other available strategies.


orbithunter
orbithunter

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