Nov 192020
 
SFI token from Saffron Finance

This is a guide on how to buy SFI from Saffron Finance, a DeFi token.

What is Saffron Finance?

Saffron Finance is a decentralized finance aka DeFi product which is built for investors with varying risk appetite. The product accomplishes this by creating various tranches of risk for investors. Different tranches have different risk from the same underlying pool of returns. The “higher quality” risk tranches get first priority for returns and cash flows but have a limited upside, whereas the “lower quality” risky tranches get last priority but with higher potential upside.

If this sounds similar to collateralized loan obligations or CLOs, infamous for their role in the 2008 financial crisis, then well that’s because this is. The product is, in fact, similar to Barn Bridge and BOND token. It seems like tranches of varying risks is the new hot thing in the DeFi world. It remains to be seen if there is enough investor demand for these products.

In the meantime, projects like Barn Bridge and Saffron Finance are relying on the good old liquidity mining programs to kickstart adoption. They hope organic adoption will follow. We are yet to see the story pan out, which makes sense. After all, these projects are barely a few months old.

If the broader DeFi movement takes off with investors, tranches and pooled risk is a reasonable bet. After all, different investors have different risk appetites and time horizons. Someone may simply be in stablecoins for a few weeks waiting to deploy capital and want a safe return for that time horizon. Others might want to gain an aggressive risk exposure with higher return potential.

Buy SFI token (or earn SFI)

In the meantime, you can earn SFI or simply buy SFI to gain exposure to this project. As of this writing, Saffron Finance has an active liquidity mining program. Currently, there are two pools – DAI and Uniswap liquidity pool. A third USDT pool is planned to be live soon.

SFI pools from Saffron Finance

If you do not want to participate in this program, you can simply buy SFI from Uniswap. This is the link to see the historic SFI liquidity information and here is the direct link to Uniswap to buy SFI.

The liquidity pool on Uniswap is an ETH liquidity pool. If you want to exchange a non-ETH token into SFI, say LINK or YFI or AAVE, then first convert your token to ETH on an aggregator like 1inch so you get the best trade execution, then come back to Uniswap to make the trade with your ETH.

If you’re coming from the non-ETH world, such as Bitcoin, convert your Bitcoin into ETH first via Binance or Coinbase or another traditional centralized exchange, withdraw your ETH to MetaMask or another wallet, and then trade on Uniswap as described above.

Nov 022020
 
how to buy bond token from barnbridge

This is a guide on how to buy BOND from BarnBridge. BOND token is a native governance token of the BarnBridge protocol. Before we dive into the BOND token itself, it is useful to look at BarnBridge first.

What is BarnBridge?

Broadly, BarnBridge is a DeFi protocol for tokenized risk. It is a way to create derivative products on Ethereum where the risk-return profile is broken into tranches, so that different investors can buy exposure to the same underlying asset class at different risk profiles.

Confused? In a nutshell, BarnBridge automates the process of collateralized debt obligations (CDO)s for DeFi protocols. The underlying tokens can be yield generating tokens based on other DeFi protocols, such as DAI in Compound, or even plain old tokens.

Changing Risk Profile

At the heart of the BarnBridge protocol is the idea of different tranches with different risk-return profiles. The senior tranche would get the first preference and therefore has the lowest risk and thus a lower return. The “equity” tranche takes on maximum risk but also provides higher returns.

The big bet is that DeFi is mature enough to start supporting these tranches. The different tranches will appeal to different types of investors.

For example, if you want to use BarnBridge for interest rates on Compound, you’ll divide the returns obtained into tranches. Let’s say the senior tranche gets 3% fixed interest and the junior tranche gets the rest (for simplicity sake – in practice there can be many tranches).

Interest Rate Example

In the example above, the first 3% return flows to the senior tranche, and the rest to the junior tranche. If 200 DAI was split equally between the tranches, and the actual interest rate turned out to be 8%, then the total interest earned would be 200 * 8% = 16 DAI. Of this, 3 DAI goes to the senior tranche due to fixed 3% return on 100 DAI. The remaining, 13 DAI, goes to the junior tranche, thus providing a return of 13%.

As you can see, the risk profiles and returns are as follows:

  • The senior tranche investor seeks safety of fixed yield. For this, they get 3% fixed. If the actual interest earned was 2%, they would still get their 3%. Thus they take on lower risk for more certainty of interest rate.
  • The junior tranche investor seeks higher risk. They are betting that the interest rates in this case will be higher than 3% and are willing to ‘leverage up’ this bet. If they just put money into the protocol, they would have earned 8% but now they earned 13%. Of course if the interest rate moves against them, e.g. 1%, then they lose money.

In addition to the interest rate, you can use any underlying token. For example, if the underlying were LINK, you can either partially hedge your exposure to LINK via senior tranche or leverage up your LINK position for a more bullish position.

Market Appetite

The big question is whether there is enough investor appetite for these tranches and whether the market is mature enough. There are already other ways to gain leveraged or hedged exposure, e.g. via options and other derivatives so investors have choices as well.

Finally, CDOs and CDO-like structures played a big part in the 2008 financial crisis. There is some irony to that, given DeFi wants to do better than the traditional financial system.

How to Buy BOND Token

Now that you understand BarnBridge, it is time to talk about BOND, the governance token. Before we proceed, know that a protocol like BarnBridge could be very promising but a token like BOND may not be able to retain value.

The BOND token has the highest liquidity on Uniswap via BOND/USDC pair. This is because this pair is used for the liquidity mining incentives currently in place. In fact, you can earn BOND via liquidity mining but be aware that you take on the risk of impermanent loss. Also, BOND liquidity mining incentive is strangely implemented by giving out weekly rewards which causes a sudden price dump when this is released.

With all these caveats, here are the steps to buy BOND token:

  • Step-1: Convert ETH (or other tokens) to USDC via 1inch to get the best execution rate via multiple DeFi exchanges (1inch automatically routes your order via the best path).
  • Step-2: Go to Uniswap for BOND/USDC pair and exchange your USDC for BOND.

And that’s it – you now have BOND in your Web3 or MetaMask wallet.

Oct 022020
 
how to buy CORE defi token from cvault finance

This is a guide on how to buy CORE token from Cvault finance.

Like with many other DeFi tokens in recent weeks, CORE is inspired by YFI especially the vaults feature. While YFI had the lead for a couple of months after launch, newer projects like Core and Pickle are nibbling at its heels. This is not surprising since the rewards are high – after all, YFI is close to a billion dollars in marketcap and even if a new project can get 1%-10% of that market, it is worth a try.

CORE has strategy contracts similar to YFI. These charge a 5% performance fee. This fee is used to auto buy the CORE token. There does not seem to be any withdrawal fee from these vaults.

CORE however goes beyond just a usual clone. It has a funky UI which has become the norm after Curve. More interestingly though, it is a deflationary token unlike YFI which is a fixed supply token. The number of CORE tokens is capped at 10,000 but that number will only go down over time.

How to Buy CORE

Currently the best way to buy CORE with ETH is on Uniswap. If you’re starting from a non-ETH token – say you want to diversity from YFI, make sure to first convert to ETH on an aggregator like 1inch so you get the best rate.

As you can see, CORE has healthy trading volume. Over the last 24 hours, the trading volume of CORE on Uniswap is over $70 million. This is pretty impressive by itself. This is almost 3 times as high as YFI in the same time frame.

CORE trading volume on Uniswap

How to Farm CORE

Currently you can also farm CORE with the CORE-WETH Uniswap LP token. Once you have acquired this token, you can go to cvault.finance and stake this token under Wallet > Farm.

Before you farm for CORE, be aware that this is unlike other LP tokens that you may have used to farm. In the team’s own words,

Note that once added, liquidity tokens can not be removed from the CORE Uniswap LP pools. This is by design

Therefore, don’t farm CORE without doing your due diligence and research first.

Sep 182020
 
how to buy pickle from pickle finance

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 Jars

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.

Sep 162020
 
buy UNI uniswap's governance token

This is a guide on how to buy UNI token – the “governance” token of Uniswap. The long-awaited moment has finally arrived. After months of speculation about when Uniswap would release a token, especially after the ‘vampire attack’ of Sushiswap last month, it was only a matter of time. Now it is official – Uniswap has a native governance token, UNI.

UNI has one of the best distribution you could think of – it rewards all past users of Uniswap v1 and Uniswap v2, along with retroactively distributing UNI to liquidity providers. For all the distribution details, you should read their blog post on the same topic.

Update: UNI has caused gas to spike to unprecedented levels. If you are looking to get your transaction through, make sure to read how to set nonce manually in MetaMask and the right gas price estimation for transactions.

How to Farm UNI

Firstly, the team also announced a way to farm UNI tokens, so instead of buying UNI you could simply provide liquidity to a select few Uniswap pools and earn UNI.

As of now, for the first 1 month, there are only 4 pools where you can farm UNI. These liquidity mining UNI incentives are for the following pools:

  • ETH/USDT
  • ETH/USDC
  • ETH/DAI
  • ETH/WBTC

5,000,000 UNI will be allocated to each pool above, which comes out to 54 UNI per block per pool. If you want to farm UNI, hurry up and add liquidity to one of these pools, since the amount of liquidity and hence your share of UNI will only go down.

How to Buy UNI

As you might expect, UNI has the most liquidity on Uniswap among the decentralized exchanges (DEXes). This is the UNI-ETH pool to buy UNI with ETH or sell UNI for ETH.

As a general rule, if you are trading UNI, first head over to 1inch to check the prices for the token pair. This is especially true if you want to start from a different token than ETH, say LINK, MKR, BAT, REP, YFI, etc. but even for ETH. 1inch now has private market makers who may be able to give you better prices than Uniswap. If 1inch suggests 100% Uniswap, then head over directly to Uniswap to trade. Otherwise, execute the trade on 1inch.

Also, Binance has already listed UNI. Given the gas prices on Ethereum and the expected increase in gas prices with UNI trades going on in full swing, Binance might just be the more economical option.

In case you’re looking to buy UNI with fiat, you can first get some ETH on Coinbase and then follow the steps above.

Update: Not to be left behind, Coinbase Pro has announced they will start trading UNI as well. You can now simply go to Coinbase and buy UNI

Sep 142020
 
what is yycrv yearn curve

This is a comprehensive guide to understanding what is yyCRV and its relationship to the underlying yCRV LP tokens. In addition, we’ll talk about how to buy yyCRV or create this wrapped token yourself by using the yearn and curve ecosystems. We will also discuss why yyCRV is becoming a standard “yield maximized stablecoin” that is sometimes being referred to simply as yUSD instead of yyCRV for this reason.

Before we dive in, this is a post on yyCRV. If you are unfamiliar, make sure you read our guide on what is yCRV first. Also, we only talk about yCRV and yyCRV here, not CRV which is a native governance token of Curve Finance.

Recap of Basics: yTokens and LP Tokens on Curve’s y Pool

Quick recap of the basics – Yearn created yTokens, which are stablecoins that automatically seek the highest yield from various lending protocols. Curve then created a stablecoin pool, “Y” pool, consisting of yDAI, yUSDC, yUSDT, and yTUSD. If you contribute liquidity to this pool, then you get the liquidity provider (LP) tokens from Curve called yCRV.

Therefore, by the time you come to yCRV, you have already combined stablecoin protocols like Maker for DAI, Yearn’s yield maximizing yTokens, and Curve’s AMM and LP tokens. Remember also that yCRV retains its value as long as all the stablecoins in the y Pool are close to their $1 value. If say one of the crashes, then yCRV token will be worth much less.

If you want to learn more about the full history, read our guide on yCRV.

y-Vaults and Depositing yCRV into y-Vaults

Yearn is an entire ecosystem of DeFi products. That is one reason we are bullish on YFI. In addition to the yTokens above, Yearn has also built what is called a “y-Vault” for various crypto assets.

When you deposit an asset into a y-Vault, you get more of that asset back. How? You simply yield farm the most profitable strategy out there as a collective.

For example, the current strategy of the y-Vault for yCRV is to farm for CRV, the native governance token of Curve Finance. Then the vault will automatically sell the CRV for more yCRV. Therefore, if you deposit $1000 into the y-Vault for yCRV today, you can withdraw around $1100 a month from now.

What is yyCRV

yyCRV is the token that you get when you deposit yCRV into Yearn’s y-Vault. This token gives your proportional rights to the vault, so you can withdraw all your yCRV (the underlying token of the vault) at will.

This token is liquid, so you can find yyCRV in your wallet when you check on MetaMask or Etherscan. This fact is very important because you can now buy, sell, trade, or spend your yyCRV.

Since the underlying assets of yyCRV are stablecoins, it is sometimes pitched as yUSD to be easier to people new to the space. This is the right marketing. The hope is that yUSD or yyCRV will replace market pairs against DAI or USDC and will become the standard. This way, traders and investors get exposure not just to a single stablecoin but to a yield-maximized stablecoin that also yield farms the best DeFi farms!

How to get yyCRV (create yyCRV)

If you want to get yyCRV starting from a stablecoin, you can simply follow these steps:

  • Go to Curve finance and enter the “Y” pool. Then go to Deposit. This is the direct link. You now have the option to deposit any stablecoin from DAI, USDC, USDT, and TUSD.
  • Behind the scenes, Curve converts the stablecoin that you supplied into all the other assets in the pool. Once your transaction succeeds, you will be issued Curve Y Pool’s LP tokens, yCRV.
  • Once you have yCRV in your wallet, head over to Yearn’s y-Vault and look for the yCRV vault (it is labeled as yDAI/yUSDC/yUSDT/yTUSD showing the underlying assets). Then deposit your yCRV into this vault.

Congratulations! You should now have yyCRV in your Ethereum wallet.

How to Buy yyCRV

Since yyCRV is an ERC20 token, it can trade on decentralized exchanges like Uniswap, Mooniswap and others. Some exchanges have provided liquidity to this pair so you can simply buy yyCRV with ETH or another token that you might hold.

The simplest way to do that is to go to 1inch and select which token you’d like to exchange for yyCRV (e.g. ETH or non-ETH tokens like YFI, LINK, SNX, LEND, etc.)

Note that yyCRV tends to have fragmented liquidity – for example Balancer, CREAM etc. have better liquidity than Uniswap, so it is best to go through an aggregator like 1inch, otherwise you’ll end up paying more.

Sep 132020
 
what is yCRV from Curve

This is a comprehensive guide on what is yCRV and how you can buy yCRV or acquire yCRV directly from Curve Finance. yCRV is used in a number of other DeFi protocols, including the popular yearn finance or YFI and some emerging DeFi protocols like Cream Finance. This post will help you understand yCRV and why it is used in so many DeFi applications, and finally how you can get some yCRV yourself.

Before we go further, it is important to note that yCRV is different from CRV. CRV is the native governance token for Curve Finance. However, yCRV as we’ll see is a liquidity provider or LP token. This post is about what yCRV is, and not CRV.

Important links

yCRV token on Etherscan

yCRV token on Uniswap

yCRV/ETH liquidity pair on Uniswap

Understanding yTokens: What are yDAI, yUSDC, yUSDT, and yTUSD

Before we understand yCRV, we need to look into what yTokens broadly are. For example, what is yDAI or yUSDC? DAI is an algorithmic stablecoin from Maker (MKR) and USDC is a dollar-backed stablecoin from companies like Coinbase. These stablecoins have a corresponding “yToken” i.e. yDAI and yUSDC.

Simply put, yTokens are yield-enhanced (or yield-maximized) stablecoins. What this means is the yToken version of a stablecoin actually pays you interest! And not just any interest – it pays you the most interest in the safest possible way. Let’s dig further.

There are several DeFi lending protocols out there, such as Compound. (COMP) and Aave (LEND). If you deposit stablecoins into these protocols, you get some interest on your deposit – currently anywhere from 2% to 15% depending on the protocol, stablecoin, and market demand.

The lending protocols function similar to a bank in that they take deposits from depositors and lend them out to borrowers who want to borrow your stablecoins. You as a lender are protected because the loans are overcollateralized i.e. the borrowers are putting in assets more than they borrow.

yTokens are essentially wrappers around these base stablecoins, so they increase in value over time. For example, yDAI is currently around 1.05 DAI and goes up in value each day. The holder of yDAI doesn’t need to do anything or interact with the lending protocols at all – all that is abstracted from the end user.

The best part about yTokens is that it is not tied to a single lending protocol but instead will move your money around the best possible lending protocol maximizing your returns. This is what makes them “yield enhanced”.

In an ideal world, all DeFi protocols would simply interact with the yTokens instead of the native stablecoins since they accrue value over time.

What is Curve Finance

Curve finance is an automated market maker (AMM) specially for stablecoins. The way it is designed is that unlike a regular AMM like Uniswap, the slippage is very low around the stable price point and higher elsewhere. Assuming the stablecoins don’t deviate too much from their $1 price, Curve offers by far the best trading price. This makes curve very attractive for stablecoins and it has trading volume of billions of dollars a month currently.

Curve finance uses the wrapped versions of stablecoins since they are yield accruing. Therefore whenever your deposit DAI or USDC into the “Y pool” in Curve, it automatically converts it into yDAI or yUSDC. If you hold them for the long-term, you can earn 10-15% on your money simply by holding the yToken version of the stablecoin.

What is yCRV

Curve finance has a y Pool that trades yTokens against each other. The liquidity provider, or LP tokens of this y Pool is called yCRV.

When you hold yCRV, you get returns in three distinct ways:

  • By using yTokens, you get enhanced yield as explained above. This can by anywhere from 2-20% a year in the current market.
  • By providing liquidity to the pool, you earn fees (fee on Curve is currently 0.04%, split among the LPs). This is currently anywhere from 2-5% per year on an average.
  • CRV, the governance token of Curve, is also distributed to the LPs on Curve, which currently provides a yield of anywhere from 80-200% a year on average.

As you can see, yCRV is an attractive token to hold.

How to get yCRV

There are a few days in which you can get yCRV. They are described below.

Method-1: Directly from Curve Finance

Go to Curve Finance and enter the y Pool, then click Deposit. Here is the direct link. Now supply any of the following assets: DAI, USDC, USDT, or TUSD.

Curve will automatically convert this into the LP token by buying the rest of the tokens at the current price on Curve. After you have approved the final transaction, your wallet will have yCRV.

If you don’t have the assets above, the easiest way would be to buy USDC from Coinbase and withdraw them to your Web3 Ethereum wallet like MetaMask. Alternately, you can trade your crypto for DAI or USDC on 1inch, which aggregates the best price for you via all Decentralized Exchanges (DEXes) on Ethereum.

The downside of this method is that gas for this transaction can be very expensive.

Method-2: Buy yCRV from the Market

You can also buy yCRV directly from the Decentralized Exchange ecosystem on Ethereum. To find the best prices, go to 1inch and check their execution. You can also start from a non-ETH token, so if you have say LINK, YFI, LEND, SNX, MKR, etc. and want to buy yCRV with that, 1inch will take care of the best conversion for you. You don’t need to check all exchanges like Uniswap, Mooniswap, Balancer, Dodo, etc. manually anymore.

If you prefer Uniswap, this is the pair on Uniswap to buy yCRV with ETH. Note that Uniswap calls this pair by its “full name” i.e. Curve.fi yDAI+yUSDC+yUSDT+yTUSD. Now you know why yCRV was adopted!