If you’ve just discovered Stake DAO, welcome! Having seen a large uptick in new users, lately we’ve been fielding a lot of questions around the difference between the ‘Strategies’ and ‘LP Farming’ features.
Stake DAO will often market a strategy’s total APY including LP Farming, which can be confusing for new users that aren’t familiar with this feature. This post is a quick walkthrough to explain how you can use LP Farming to maximize your yield!
Strategies
The Strategies tab is your first port of call for yield generation on Stake DAO, leveraging our battle-tested stack built on top of Curve Finance.
Here, you can deposit into Strategies to receive some of the market’s highest APYs on USD/DAI/USDT, FRAX USD, ETH, stETH, EURS, and much more, with rewards being distributed in the strategy’s underlying token e.g. 3CRV.
To optimize your yield with additional SDT rewards and get the most out of Stake DAO, you will need to utilize LP Farming (see below).
Note that there’s no need to manually claim your rewards from Strategies, as they are automatically compounded in to maximize revenue — you will receive your deposit + yield the moment you withdraw.
LP Farming
When depositing into Stake DAO Strategies, you automatically receive LP (liquidity provider) tokens in return. The LP Farming tab is where you can stake these tokens, and receive additional SDT rewards on top of the APYs you see on Strategies!
The various APYs you see on LP Farming reflect the total Strategy APY combined with the APY in SDT — this is the full APY available. You can see this breakdown by clicking on the ‘i’ button on the LP farm tile:
To utilize LP Farming you will need to stake in Strategies first, and then stake your LP tokens in the corresponding LP farm e.g. Passive USD Strategy — → Passive USD LP Strategy Farming.
That’s it! If you’re still having issues or have further questions, please reach out to one of our all-star moderators on our Discord Support channel.
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