This guide will help you buy PICKLE from pickle finance and understand the value of the PICKLE token in the DeFi ecosystem.
While the ‘food farming’ craze continues unabated, projects like pickle finance bring more to the table than just a useless token. PICKLE is an interesting project that combines elements of YFI and elements of traditional yield farming like SUSHI to create a real financial product for users, all the while accruing value to PICKLE token holders.
The original concept of Pickle was simple, interesting, and valuable to the entire space: Incentivize bringing stablecoins to their $1 peg. They do this by providing higher rewards to lower priced pairs, and lower rewards to higher priced pairs. For example, if DAI is currently trading at $1.02 but USDC is trading at $1.00 then the rewards for DAI/ETH will be lower than the rewards for USDC/ETH liquidity pairs.
How to Farm PICKLE
There are currently 5 pairs with which you can farm PICKLE. The first one is the PICKLE/ETH Uniswap LP pair, and the other 4 are ETH/USDT/SUSD/USDC/DAI Uniswap ETH pairs respectively.
The PICKLE holders seem to prefer a low terminal inflation in order to keep yield farming going for a long time. However, they also keep inflation in check with reducing rewards over time. The idea seems to be that if you were in one of those Uniswap pools anyway, might as well stake them on Pickle to get some PICKLE tokens. This may not prove to be true with the launch of UNI from Uniswap.
Still, even the PICKLE/ETH Uniswap pair provides good PICKLE returns if you were bullish on PICKLE. However, do be aware that this is an extremely risky pool due to high risk of impermanent loss.
How to Buy PICKLE
In order to buy PICKLE token, you are better off using decentralized exchanges since the larger centralized exchanges haven’t listed it yet. Currently, due to the incentives, Uniswap has the best liquidity. On that link, click on ‘Trade’ to buy PICKLE with ETH, or ‘Add Liquidity’ to add liquidity to this pool and get your Uniswap V2 LP tokens. Make sure you are staking these tokens back into pickle finance for that juicy APY.
As a matter of best practice, we always suggest using 1inch to check the prices first. This is because 1inch aggregates prices from all over the DEX space and gives you the best pricing. For example, a 0x relayer might have better pricing for one of the legs of the trade. 1inch is also more flexible in finding the best price for the exchange of any one token into PICKLE, so for example you can start with YFV and end with PICKLE.
Pickle finance recently announced Pickle Jars, modeled after YFI’s y-vaults. Here, you deposit LP assets like DAI/ETH into the jar (vault). There are automated strategies that use this LP token to farm other tokens, convert these farmed tokens into the underlying (DAI/ETH in this case) token, and distribute to users of the jar (vault).
The first strategy they will implement is farming CRV and UNI and selling it for the underlying LP tokens. There are also leveraged stablecoin strategies in the future, given the original premise of Pickle finance.
This is an interesting product development because it provides value to PICKLE holders immediately, similar to how YFI accrues value. It remains to be seen how much AUM pJars can attract.
You can read the original pJar announcement to learn more.
If you want to learn more, make sure to join the pickle discord.
Always double check PICKLE token address.