Uber-yields on Polygon: Hacks for supercharging your yield on Stake DAO
If you are currently a liquidity provider on Stake DAO Polygon, first and foremost, thank you for your support. So that you get the most out of your experience on Stake DAO, we would like to cover several ways in which you can maximize your returns both on Stake DAO, and one of our close partners, Cometh.io.
Many users can enjoy near-zero gas fees and highly competitive returns utilizing one of several Stake DAO strategies on the Polygon network. Polygon’s native token, MATIC, is used to pay for transactions on the network.
If you have never used or interacted with the Polygon network, please read this guide that will help you set up your Metamask wallet. To bridge funds to Polygon, you can use the Polygon Bridge. We’ve found this bridge to be the safest, most reliable bridge to Polygon. Keep in mind you will need MATIC for making transactions (if for any reason you need a little MATIC to get you started, just ask one of our mods).
Stake DAO has two main farming opportunities on Polygon — both of which are incentivized with Stake DAO’s governance utility token, SDT.
1. Passive Aave USD
This strategy utilizes stablecoins and is layered on top of one of the industry’s leading protocols, Curve Finance. Currently earning ~25% APY, this high yield strategy not only minimizes risk, but allows you to earn one of the best stablecoin yields on Polygon.
Note: Please visit https://polygon.curve.fi/aave and deposit stablecoins. You will receive the LP token AM3CRV, which you can then deposit into the Passive Aave USD strategy above.
2. SDT/WETH Liquidity Pool
This high- yield, liquidity pool farm, found on Cometh.io, allows you maximize your return on Polygon. Currently offering a yield of ~100% APY and earning incentives in both SDT and MUST, this strategy is geared towards those looking for higher yields in return for providing liquidity.
Please visit https://swap.cometh.io/#/pool and click on “Add Liquidity”. You will be asked to deposit equal amounts of SDT and WETH. If you do not have 50% of each token, you can click on the Swap tab. Once you have deposited, return to the “Farm” tab and deposit your LP tokens to earn SDT and MUST.
Note: Please understand what impermanent loss is before providing liquidity. Click here for a guide explaining impermanent loss.
What can I do with SDT on Polygon?
The short answer, many things — all the while avoiding the high fees on Ethereum!
In addition to being Stake DAO’s governance token, SDT also has incredible utility. At Stake DAO, we are huge fans of making your rewards work for you. Not only can they work for you, but you can claim your rewards as often as you like for pennies, letting you truly maximize your returns compared to mainnet! Below are a few of my favorite things to do with SDT on Polygon Network.
- Take your freshly minted SDT from the Passive Aave strategy and pair them with WETH and farm on Cometh.io. If you prefer to farm in stables to de-risk your position, you can keep your capital safe but maximize your returns by earning ~116% APY (at the time this article was written). Pair your SDT with WETH and join the liquidity pool earning even more SDT goodness and MUST! Learn about the MUST token and how Cometh has gamified NFTs. Click Here to learn more about Cometh and their ecosystem.
- Wanted to stake your SDT in the Sanctuary but hate the fees on Ethereum? No problem, we have you covered. Swap your SDT for xSDT on Polygon! By holding xSDT, you enjoy all the benefits of having your SDT staked on ETH, but at a fraction of the cost. Because xSDT is a yield-bearing token, meaning it increases in value as the DAO earns revenue, your SDT are being put to work simply by being converted to xSDT, and held. Learn more about SDT staking and rewards here.
- Swap half of your SDT for xSDT and join the xSDT/SDT liquidity pool on Cometh.io. Deposit 50/50 xSDT/SDT and then stake your LP tokens here. You will earn a portion of the swap fees generated by users making swaps. You also get the added benefit of half of your position being xSDT which carries the benefits listed above. While this pool isn’t currently incentivized with SDT, it’s possible rewards will be added which would include SDT and MUST.
- Accumulate SDT and bridge back to ETH to release the full potential of your token! Whether you are a new user, or a die-hard member of the Herd, you have undoubtedly read about the insane amount of utility SDT offers. Staking SDT allows you to not only earn a portion of DAO revenues, but so much more! We have gamified Stake DAO: access unique, one of a kind strategies by staking your SDT to earn points that allow you to buy NFT’s and more.! Or use SDT to make your voice be heard participating in our governance platform and shaping the future of Stake DAO!
Please be aware that only users that have staked xSDT in the Palace on ETH mainnet are able to earn Palace Points used to purchase NFTs, vote on governance proposals, and more in the future. If you would like to earn Palace Points, you have several options in which you can choose.
- Earn SDT by depositing into one of our many high yielding strategies. From there, you can stake your SDT in the Sanctuary giving you xSDT in which you stake in the Palace.
- Market-buy SDT and stake in the Sanctuary and Palace Contracts.
- Buy NFTs directly off the open market from Opensea.io.
There is so much more to come! Thank you to our loyal Herd.
Telegram: https://t.me/StakedaoHQ 🐘
Twitter: https://twitter.com/StakedaoHQ 🕊️
Discord: https://discord.com/invite/25HzsEwA6G 👾
Website: https://stakedao.org 🌐