Passive USD Strategy on Harmony Protocol and ONE incentives are live!
After our $ONE Staking solution, we are happy to launch our first strategy on Harmony boosted with up to $3M incentives in $ONE.
Continuing on our campaign to bring the best of every chain into one place, today we launch Passive USD Strategy on Harmony, a high-yield strategy built on Harmony’s interoperability-focused smart contract platform!
The new strategy offering comes after the launch of Stake DAO’s Harmony validator, and marks the start of a close working relationship with Harmony.
In support of our ambition to make the best of DeFi accessible to all, the Harmony Foundation has allocated Stake DAO a grant of up to $3M in $ONE incentives. These incentives aims to support the adoption of Harmony products built on Stake DAO.
How does the strategy work?
This strategy invests automatically interest-bearing 3CRV, the Curve 3pool LP token, into the according vault. It earns trading fees based on the pool trading volume, additional CRV token rewards from Curve, and ONE rewards from Harmony. The strategy rewards are compounded periodically to maximise returns.
- Performance fee: 15%
- Withdrawal fee: 0.5%
Please note you will need to have stablecoins on the Harmony blockchain to deposit into this strategy — you can move funds from Ethereum to Harmony using the official Harmony bridge (see instructions below).
Once you have moved funds to Harmony, you can deposit them into the strategy here.
How do I set up Harmony on MetaMask?
1. Adding a Custom RPC Endpoint
In order to connect to the Harmony Network, a custom RPC Endpoint needs to be added. On the top of MetaMask, click on the network you are connected to, and then select Custom RPC:
2. Input the Endpoint Information
Fill it accordingly to the Harmony Network and shard you want to connect to.
You will need to use Shard 0 if you want to interact with Stake DAO or send/receive transactions from exchanges or do any type of staking transaction.
The example below shows the configuration that needs to be done to connect to Harmony Mainnet on Shard 0:
Finally, click on the Save button and you should now be connected to Harmony!
How can I start earning ONE incentives?
Users can prepare to earn their share of ONE rewards simply by staking in Passive USD Strategy (Harmony). With up to $3 million in ONE to distribute, Stake DAO will soon offer some of the most competitive yields on USD stablecoins on Harmony.
To deposit in Passive USD Strategy on Harmony, users can follow these steps (if you already have tokens on Harmony, skip to Step 2).
- Add the Harmony Network on MetaMask (see instructions in previous paragraph)
- Bridge tokens from Ethereum to Harmony, from BSC to Harmony, or from Polygon to Harmony
- Head to Stake DAO -> select Harmony network
4. Head to Passive USD Strategy (Harmony) on Stake DAO’s Strategy tab -> Harmony
5. Click “get 3crv” -> Deposit tokens on Curve Finance for 3crv (Deposit — do NOT ‘Deposit & Stake in Gauge)
6. Enter amount of 3crv to stake in strategy -> Approve + Deposit
Once you’ve deposited in the strategy your amount of sd3crv will stay the same, but the value of sd3crv will increase (price per share value).
What are the risks of using the strategy?
Like all Stake DAO products, the Passive USD Strategy on Harmony has been thoroughly tested, however, risks must be noted:
All smart contracts on Stake DAO have been thoroughly tested, however as with all DeFi applications there is a non-zero possibility of failure.
Permanent loss of peg
If one of the three stablecoins in the pool (DAI, USDC, USDT) loses and failed to regain its peg, liquidity providers will hold all their liquidity in that asset.
There is risk at time of staking, as each Stake DAO strategy uses multiple smart contracts and failure is possible.
Please do not deposit assets you can’t afford to lose on Stake DAO.
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