DeFi Pulse Farmer #49
DeFi Pulse released DeFi Pulse Farmer #49, top stories, developments, and trends from the past week in tandem with two key farming opportunities to keep an eye on.
DeFi is showing a bit of renewed strength lately, with the total value locked (TVL) in the ecosystem having risen from $52.94B to $55.73B since our last issue of the Farmer. That makes this the second week of steady growth in a row now for DeFi after its TVL slump to ~$49B toward the end of June!
For example, two big headlines from this week that have us feeling hopeful for DeFi’s future include:
- Uniswap deployed its V3 protocol to Optimism’s layer-two (L2) mainnet, suggesting it’s now only a matter of days until near-instant, near-free trading is coming to Uniswap. Ethereum’s most popular DEX arriving on L2 is a moment many of us have been excitedly waiting for, and it could play a non-trivial role in kicking off DeFi Summer 2.0 if a yield farming frenzy ensues!
- Circle, the company that issues the popular USDC stablecoin, is going public as part of a “SPAC” deal. As such, Circle’s maneuverings continue to put USDC in a position to serve as a major bridge between CeFi and DeFi going forward. The U.S. Federal Reserve may never have a need for issuing its own central bank digital currency if USDC wins out in the private sector and then beyond.
Wrapping up the recap, let’s take a look at the best-performing DeFi tokens from this week. In that span they saw strong runs from INST (+100%), ALPHA (+75%), SNX(+68.5%), FXS (+34%), and AAVE (+27%). They also saw the DeFi Pulse Index (DPI) rise 25.6% to reach $315.88.
🔹Farm up to 23% via Element.fi’s Earn app
DeFi’s at its best when it offers users flexibility. Element Finance is a new protocol whose way of offering flexibility entails giving people the ability to split their DeFi yield-bearing positions into base assets and yields.
So what do I mean by yield-bearing positions, exactly?
For instance, the Element team launched with support for the Yearn LP token of Curve’s LUSD + 3CRV pool, crvLUSD, and has since added support for the crvTricrypto LP token.
Using the former as an example, Element users can deposit crvLUSD to mint PT(principal tokens that represent the underlying base assets, in this case, LUSD, DAI, USDC, and USDT) and YT (yield tokens that track the average variable interest of those aforementioned base assets over a specific timeframe).
The main idea, then?
- Give people the ability to boost their yield by minting PT and YT from their base assets and providing liquidity to Element’s custom pools.
- Give people the ability to invest in base assets at discounted valuations courtesy of PT since these tokens can’t be redeemed until their specified terms are completed.
How to earn yields with Earn
Element Finance hasn’t released a governance token (yet), so there’s no liquidity mining program to speak of presently. Yet Element’s Earn app is offering yields over 20% right now, so the project certainly has farms worth considering.
Specifically, there are three farms to consider right now:
- 90-day crvLUSD v2 Vault
- 180-day crvLUSD v2 Vault
- 40-day crvTricrypto v2 Vault.
If you want to participate in the first two, make sure to prepare by acquiring some LUSD3CRV-f tokens. If it’s the latter you’re interested in, acquire some crvTricrypto tokens. Once you have your tokens ready, you’re ready to head to Element Finance’s Earn app.
To make money with Earn, you can follow these steps:
- Once on the Earn page, connect your wallet.
- Select which of the Vaults you want to join by pressing the “Show” button on your opportunity of choice.
- Proceed by depositing your desired amount of LUSD3CRV-f or crvTricrypto tokens into the provided interface. You’ll have to approve the minting first and then complete a separate deposit transaction. Make sure you keep some LUSD3CRV-f or crvTricrypto tokens around so you can LP with them in Element Finance’s custom Balancer pools.
- Next, click on “LP for additional yield.” In the ensuing interface, input how much liquidity you’d like to provide with your PT and/or YT tokens, and follow through with this new deposit transaction.
- Now you’ll be fetching yields as an LP through Element Finance’s Earn app!
What is DeFi Pulse?
DeFi Pulse is a site where you can find the latest analytics and rankings of DeFi protocols. Their rankings track the total value locked into the smart contracts of popular DeFi applications and protocols. Additionally, they curate The DeFi List, a collection of the best resources in DeFi, and DeFi Pulse Farmer, a newsletter covering the latest news and opportunities in DeFi.
📰 INFO:
https://yieldfarmer.substack.com/p/find-out-about-elements-latest-farms
