Weekly Analyst Thoughts
Yield Farming with YFI
“Yield farming” is a new iteration of cryptocurrency mining and staking that allows entities to earn an interest rate well above a typical US bank account. Below, find a scenario overviewing how you can use yield farming with YFI.
Scenario: Step 1: Start with $10,000 ETH and open up Uniswap. Convert $9,700 of ETH into DAI with Uniswap.
Step 2: Go to yearn.finance/earn and deposit the $9,700 of DAI into the pool to create (y)Dai tokens and earn a 10% interest rate.
Step 3: Claim your yDai tokens that were created when you deposited your DAI into the pool.
Step 4: Deposit and stake the yDai tokens into the curve.fi pool that is labeled “Y,” here: https://www.curve.fi/y.
Step 5: Receive your Curve LP tokens and then stake them at https://ygov.finance/stake to earn YFI.
Step 6: Go to Zerion and monitor your tokens as you are now yield farming YFI tokens!
By Jacob Stelter