Earning yield on Polygon MATIC
The Fed just met yesterday and announced a 2nd straight +0.75% interest rate hike. And how does the crypto market react?📈. The next meeting is September 20-21 2022!
This Week We’re Covering:
• Earning Yield on Polygon: Some low-risk ways to earn yield.
• Curve’s New Stablecoin: Here comes a new challenger! (Streetfighter voice)
• 3AC emerges: Their first interview since disappearing.
Let’s rock and roll!
“Far more money has been lost by investors trying to anticipate corrections than lost in the corrections themselves.” – Peter Lynch
How to Earn Yield on Polygon ($MATIC)
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The following section is written by Patrick from Dynamo DeFi
What is Polygon (MATIC)?
Polygon (Matic) is a set of scaling solutions designed to provide faster transactions and lower costs than the Ethereum network. The most popular one is Polygon POS (Proof of Stake) which is a Sidechain. They are working on several Layer 2 ZK-rollups.
Why Is It Trending?
Polygon has been around since 2017. Why’s everyone talking about it now?
One word: Momentum.
- Last week Polygon announced their new zkEVM Layer 2. The zkEVM uses ZK-rollups to scale Ethereum. Crucially, developers will be able to deploy existing Ethereum applications on the zkEVM.
- Best in Class Partnerships. Earlier this month, Disney announced they had selected Polygon for their 2022 Disney Accelerator program. This comes on the heels of partnerships with Reddit, Facebook, Instagram, and Stripe.
- Ethereum is pumping as hype builds for “The Merge.” This hype is spilling over to Ethereum scaling solutions like Polygon.
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Farming Opportunities
Maybe you’ve decided to invest in Polygon (MATIC). Now what? How can your MATIC work for you?
(If you don’t own MATIC, it’s easy to find it on all the major exchanges. I use and recommend FTX)
Fortunately, Polygon has a vibrant DeFi ecosystem to safely earn yield on MATIC. We’re going to share some of the lower-risk ways to earn yield with MATIC.
1) Staking directly with Polygon.
Stake Matic and receive Matic
APY: 10.04%
Risk: 1/10
Stake on the official Polygon site. This method is tried and tested, but keep in mind that it takes multiple days to unstake your MATIC.
2) Liquid Staking on Lido
Provide Matic and receive stMATIC
APR: 9.07%
Risk: 2/10
Lido Finance allows you to stake your MATIC as stMATIC. stMATIC sits in your wallet and automatically accrues staking rewards.
This is liquid staking. Your MATIC isn’t locked up compared to staking directly. You can use your stMATIC to earn additional yield.
3) Pool MATIC-ETH on QuickSwap
- Provide MATIC and ETH to the QuickSwap Liquidity Pool.
- Receive MATIC-ETH LP tokens.
- Stake MATIC-ETH LP tokens on the QuickSwap ‘Dual Mining’ farm.
APR: 42.61%
Risk: 4/10
If you don’t want pure exposure to MATIC, you can pair it with ETH in a liquidity pool. MATIC and ETH correlate well with each other, so there isn’t as much impermanence loss.
QuickSwap is the premier DEX on Polygon.
4) Pool stMATIC-MATIC on Beefy
- Go to the autocompounder Beefy.
- Deposit MATIC.
- Receive MOOQUICKSWAPSTMATIC-MATIC (that’s a mouthful).
Scroll down and click the “BOOST” button to receive bonus rewards from Lido.
APY: 20.54%
Risk: 5/10
There isn’t any impermanence loss because you’re pairing MATIC with stMATIC. You are taking on additional smart contract risks because you’re using an autocompounder.
Beefy is the only autocompounder I trust.
The Risks Involved
Before rushing to buy MATIC, be sure to consider the risks.
- Since Disney announced their partnership with Polygon, MATIC has already pumped over 60%. That news is priced in.
- Some of Polygon’s upcoming Layer 2s will use ETH as gas. It’s not yet clear how those chains will relate to the MATIC token.
- Upcoming competition from other Layer 2s. Arbitrum, Optimism, and Metis are already battling it out, while Starkware is a sleeping dragon.
- The more DeFi protocols you interact with, the greater your chance of falling victim to an exploit. Even audited protocols carry risk.
Edgy’s Thoughts: I don’t own any MATIC. I’m invested in a few Layer 1s and don’t want to spread myself too thin. I do think MATIC’s a solid project to hold. No one matches them in partnerships, and they’re positioning themselves well with their investments in ZK-rollups.
Full Transparency: Patrick currently holds MATIC and Ethereum.
About the Author: Patrick is a yield farmer, farmer (in real life), Harvard economics graduate, and the founder of the Dynamo DeFi YouTube channel. There, he shares analysis about DeFi and crypto.
Radiant Capital aims to be the first Omnichain money market
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Most lending/borrow is limited to within the same chain.
Radiant V1 allows for withdrawals cross-chain for USDC & USDT.
Radiant V2 is in progress and will be fully cross-chain.
Version 1 launched on July 24, 2022, on Arbitrum.
Since launching, Radiant Capital has amassed $258MM in TVL!
The Technology:
• The code is forked from Geist which, in turn, was forked from Aave.
• Solidity Finance audited the code. A 2nd audit by Peckshield has just been completed and will be shared soon.
• V2 is in the works. The Cross-chain interoperability will be built on top of Layer Zero/Stargate Technology.
The Yields:
• Competitive yields on BTC, ETH, USDC, USDT, and Dai.
• Radiant holders are rewarded in BTC, ETH, and Stablecoins.
• Locking the Native token is 28 days (compared to Geist’s 90 days).
• 1-click looping if you want to use leverage.
Join the Future of Omnichain Lending
📰 The Fast Five
🙅♂️SEC Claims Coinbase Lists 9 Crypto Assets That Are Securities. The SEC detailed in a new court filing that at least nine digital assets listed on Coinbase are unregistered securities. The complaint was also against a former Coinbase employee who is accused of insider trading.
A few days later, the SEC launches a probe into Coinbase on whether the exchange improperly let Americans trade crypto assets that should have been registered as securities.
The nine assets include AMP, Rally, DerivaDEX, XYO, RGT, LCX, POWR, DFX, and KROM.
💰FTX In Talks to Raise More Funding. The crypto exchange founded by Sam Bankman-Fried is seeking more funding after conducting a buying spree in the last few months. Both the FTX Global and FTX US entities are currently fundraising with the same target valuation as their last round in January. For context, FTX Global raised $400MM at a $32B valuation and FTX US raised $400MM at a $8B valuation.
🏹3AC Breaks Silence. Three Arrows Capital’s founders broke their silence in a Bloomberg interview. The founders drew a comparison of their situation to Long-Term Capital Management, a famous hedge fund that blew up in 1998. Currently, the location of the two co-founders is still unknown, but they are transiting to Dubai.
🛑Minecraft Bans NFTs. Mojang, the game developer behind the popular video game Minecraft, has announced that it is banning NFT integration. The firm claims that NFTs can enable models of scarcity and exclusion that are not aligned with the spirit of Minecraft.
💰Aptos Raises $150M. Led by FTX Ventures and Jump Crypto, the new Layer 1 blockchain start-up founded by former Meta (Facebook) employees raised a $150MM round. The project has previously raised a $200MM round with participants ranging from Coinbase Ventures to Multicoin Capital.
What is Aptos?
A Layer 1 solution. Designed to be faster, safer, and more scalable.
The new blockchain will be built using Move. It’s a new open-source programming language developed by Facebook when it was building Novi.
Oh god. Another Layer 1 that’s massively backed by a bunch of venture capitalists.
💻What’s Happening in DeFi?
🦄 Uniswap Fee Switch Discussion. The largest DEX is currently discussing whether or not the protocol should turn on the “fee switch.”
Currently, liquidity providers receive 0.3% revenue from each trade. The switch would direct 0.05% towards UNI holders instead.
“Show me the incentive, and I will show you the outcome.” – Charlie Munger. Lowering the payouts might encourage providers to seek greener pastures. It’s better to experiment with some smaller pools and see the data.
💰Curve Working on a Stablecoin. The largest DEX focusing on stable swaps is teasing an upcoming Stablecoin. Although details are still limited, a Curve Team member posted a screenshot indicating that the protocol has been working on the Stablecoin for a while. Curve founder Michael Egorov has reportedly confirmed that the Stablecoin will be overcollateralized.
This is right on the tail of AAVE releasing their Stablecoin, GHO. And it’s following a similar blueprint of being overcollateralized. After the Terra Luna fiasco, it’s great to see some trusted names building confidence in decentralized Stablecoins.
🙅♂️LidoDAO Rejects 10M Token Sale. Lido wants to improve its treasury management. They want more Stablecoins in their treasury to help survive the bear market. The governance body that controls Lido Finance has voted to reject a 10M LDO (at a price of $14.5MM DAI) token sale to Dragonfly Capital. Here’s the latest proposal.
🍣Sushi Launches a Crosschain DEX. Sushiswap has partnered with Stargate protocol to launch SushisXSwap. It’ll be a Cross-chain DEX that supports Ethereum, Optimism, Arbitrum, Fantom, Binance Chain, Avalanche, and Polygon. The technology of Stargate’s bridge is utilized to enable these swaps, making it easy for end users to transact their assets in one click.
🤝Synthetix Partners with Jump Trading. Synthetix protocol has renewed its partnership with Jump Crypto. The trading firm will continue to provide liquidity services, investments, and participation in Synthetix’s governance. The price of the SNX token rallied by over 14% in the 24h following the announcement.
