How to Farm Uniswap + Pickle Profitably

Previously we shared a basic strategy to farm UNI Rewards through their pools, today we’ll look at a more-advanced way to build on that through pickle. Pickle’s goal is to keep stable coins at their peg (1 USD). They’ve just launched a sleek new interface and continue to offer compelling products, which we’ll discuss today.

One of their core features is to have Pickle automatically harvest and sell UNI tokens as they are earned (when you provide liquidity). This makes the most sense if you are bearish on the pricing of UNI and disincentivized to hold them for longer. But selling UNI tokens every couple days is a waste of gas, eats into profits, etc. so Pickle will harvest and market-sell your UNI tokens. This process is what they call Jars. Within Jars you can stake your LP (liquidity provider) Tokens and get those rewards without losing on gas fees.

At the time of writing, the UNI DAI/ETH Jar gives around 28%, but that’s primarily based on the value of the UNI token, the APY will fluctuate up or down with UNI token pricing. This will result in you receiving pUNIDAI tokens, which are like a receipt showing how many LP tokens you have locked up in jars.

With the pUNIDAI tokens from the jars, you can move to the ‘Farms’ tab and stake to earn Pickle in addition. Here you’ll see an even-higher APY, if you hover over the ‘Total APY’ it’ll give you the breakdown:

This results in an additional 15% (based on present pricing) paid out in pickle. Again, this APY is based heavily on the price of pickle, so it’s subject to change as the valuation shifts. The other thing to be aware of is there’s a 0.5% withdrawal fee, a portion of which goes to pickle holders, the pickle developers and to cover gas costs. So if you were to use the Jars, you’d want to leave your assets in there for several days or more to be sure at least that is covered by your gains.

Pickle isn’t your run of the mill ‘food token’ protocol. While the devs are anonymous, there is a lock-in period for their tokens and they have active community. I like the new UI, I like the product, like the community; worth checking it out.

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