INTRO TO CURVE.FI
Alright guys, for those of you defi buffs, Curve.fi / yCRV needs no introduction, feel free to jump down to instructions on how to use it to farm $YFL.
If you haven’t heard of Curve or yCRV, then I am thrilled to be the one to introduce you to this incredible product.
The product’s UI looks like someone wrote it in Pascal back in the 90s. But don’t let the UI fool you.
Beneath the retro look is one of the most powerful concepts in all of Defi.
Curve’s yCRV token is several powerful Defi ideas packed into one powerful token.
First, it is an exchange, a place you can come to swap say DAI to USDC in big volume and with minimal slippage.
The yToken pool as of today has about $14m of daily volume, and liquidity providers are providing nearly $150 million in stable coin liquidity to the platform.
Every time someone does a stablecoin swap, the protocol charges them a fee and routes the fee to the people providing liquidity on the platform.
Second, it is a yield optimiser.
The people who provide liquidity to the yCRV exchange aren’t just sitting there waiting for someone to rock up and request a swap.
yTokens continuously search Defi for the best yield, hopping between Aave, Compound and Dydx depending on which platform is providing the best yield on Dai, USDC, TUSD, USDT etc.
Interest is paid to the liquidity providers.
And last, but not least, yTokens are ERC20 tokens that represent an index of stablecoins.
Think about it, why are we messing around sending USDC or TUSD or USDT or even Dai back and forth?
Wouldn’t it be cooler if we transacted in yCRV, which not only is an index of all major stablecoins, but an index that automatically earns trading fees and the highest interest rates available in defi?
Yes, yes it would
And that’s exactly what yCRV is, and how we’re going to use it to mine $YFL in Pool 2.
MINING $YFL WITH YCRV
Step 1: Get your favourite stablecoin
Get a hold of some of your favourite stablecoin – USDC, TUSD, DAI, or USDT.
Step 2: Get some yCRV
Head on over to https://www.curve.fi/iearn/deposit. You’ll see the below screen.
You’ll notice a series of tick boxes.
The first one forces you to deposit a bit of each stablecoin in the index (DAI, USDC etc.) in the same proportion as they currently exist in the pool.
I’m a bit impatient so usually what I do is I untick all the boxes and just manually enter what I want to deposit.
You’ll notice that as at the time of the screenshot, Dai is only 3% of the liquidity pool. This usually happens when Dai is in high demand.
In the below screenshot, I chose to deposit Dai.
Notice that Curve is offereing me bonus pricing of 1.6%, to compensate for the fact that Dai is currently trading at a premium to USDC, TUSD etc.
Once I hit deposit, I’ll confirm the two transactions (first approve, then deposit) and wait for them to be mined.
Once the transactions are mined, you should have your very first yCRV tokens!
Step 3: Add yCRV to the yCRV / YFL balancer pool
In Pool 1, we added LINK to a Balancer pool which delivered us BPT tokens which we then staked on yflink.io/stake to mine $YFL.
For Pool 2, we will do exactly the same, but rather than add LINK to the pool, we will add the yCRV tokens that we obtained in Step 2.
So, once you have your yCRV tokens, go to https://yflink.io/#/staking, and find the Pool 2 section
From here, follow the Pool 1 instructions , depositing yCRV tokens instead of $LINK, and following “Balancer Pool” link below where it says Pool 2, instead of the balancer pool linked under Pool 1.
In Pool 1 you learned how to use a Balancer pool.
In Pool 2, instead of depositing $LINK, we’re minting yCRV tokens at Curve.fi, and depositing those into the Balancer Pool.
Hope that helps you guys get started, and if you get stuck at any point, please head on over to #support in our Discord where hopefully either we or other fellow marines can point you in the right direction.