How to get an APY of 100%+ on a USD deposit
No, we didn’t mix up numbers in the headline. We are really talking about 100%, and now, we’ll tell you how to get it.
Sasha Ivanov already wrote a tweet about achieving this kind of profitability. And now, we’ll take you through all the steps needed to get an APY of 100%+ on a USD deposit.
Step 1. Getting USDT and USDN
The very first thing you need is to create an account on Waves.Exchange. Thanks to its decentralized authentication system, you can use not only a usual seed phrase, but also your email.
To maximize your profits, you need to have roughly the same amounts of USDT (Tether USD) and USDN. Let’s see how you can get those tokens.
If you are new to the crypto space
You’ll be able to immediately swap USDN tokens for USDT on Waves.Exchange, in the Trade section.
If you already own crypto
If you already have USDT and USDN on Ethereum, you can transfer the tokens to your Waves.Exchange account, as explained in the Waves.Exchange documentation.
Fig. 1 — How to transfer USDN and USDT to Waves.Exchange from the Ethereum network
If you have tokens of only one kind — USDN or USDT — or have neither, these are options for getting them:
- A holder of liquid coins in the Waves network (for instance, WAVES tokens), can swap them for USDN and USDT directly on Waves.Exchange or on Swop.fi.
- If you have assets on Ethereum, you can buy USDN on Curve.finance. Thanks to substantial liquidity volumes on Curve, this is the most convenient option.
Currently, the liquidity volume on Curve.fi exceeds $200 mln, meaning it will be sufficient for just about anyone. Detailed guidelines for buying USDN on Curve are provided in the article below:
Once you’ve bought tokens in the Ethereum network, remember to transfer them to your Waves.Exchange account, as shown in a screenshot at the beginning of this chapter.
Step 2. USDT staking
The next step is USDT staking: your USDT tokens will be blocked in a smart contract, which, in turn, will use them for farming on automatic exchanges, such as Curve and Uniswap, getting you an APY of about 60%.
In exchange for USDT sent to the smart contract, you will receive USDTLP tokens, which are sort of a promissory note. Upon return of USDTLP tokens, the smart contract will send back your locked USDT tokens (with a 2-week delay!). But this is not all! You can also use USDTLP for collecting an extra income from farming.
To stake USDT tokens, go to the Investments section, then to USDT Staking and click on Stake USDT, as shown in the screenshot.
As you can see, USDT staking immediately yields almost 60% annually.
Step 3. Liquidity providing on swop.fi
The USDTLP tokens you have received can be further sent to Swop.fi, an automated market maker (AMM) in the Waves ecosystem. AMM operation is well described in articles on Medium and in a series of videos about Swop.fi. For now, it’s enough to know that liquidity is provided in token pairs, with roughly the same amount of each token (in dollar terms), in our case, USDN and USDTLP.
To provide liquidity, in the Pool section, select the USDTLP/USDN pair, click on Add Liquidity and enter the amount of tokens:
In exchange for provided liquidity, you will receive so-called share tokens (sUSDTLP-USDN).
Step 4. SWOP farming
Share tokens that you have received can also be staked. Staking is rewarded in SWOP, the governance token of Swop.fi.
Go to Investments → Farming, to see your share tokens. Click Stake, then select Max to stake all of your share tokens. On the Farming page, you will see how your rewards increase every minute.
Step 5. Profits
On Swop.fi, in the section Information → Pools Information, you can see the profitability of the USDTLP-USDN pool.
As you see, the pool’s total APY reaches 159.9%! This figure consists of three components:
- 13% is what you receive in USDTLP and USDN tokens from a 0.3% fee that swop.fi charges on each swap deal and then distributes between liquidity providers.
- 146% is what you receive in SWOP tokens as a reward for providing liquidity.
- The remaining 10%+ is what you collect in USDN tokens for the staking of tokens sent to the pool.