Yield Farming with mStable
Source: Yandex There’s two ways that you can farm yields with mStable:
-
Saving your mUSD in their SAVE product.-
Providing liquidity on their Balancer pools.Info about mStable:
-
https://coinmarketcap.com/currencies/mstable-usd/-
https://github.com/mstable-
https://defirate.com/mstable/-
https://www.coingecko.com/en/coins/mstable-usdSaving your mUSD in their SAVE product.
Step 1: Getting mUSDYou can get mUSD in two ways:
Minting or
Buying.
Minting- Go to
https://app.mstable.org/mint- Choose which assets you would like to use (DAI, USDC, TUSD, USDT)
- Deposit the amount you would like and this will be converted at a 1:1 ratio
Example: Depositing 1000 USDT will get you 1000 mUSD
Note: you’ll need to approve before being able to mint.
Buying- You can also buy mUSD from the Balancer pools using either USDC or ETH.
- Go to
https://balancer.exchange/#/swap/0xe2f2a5c287993345a840db3b0845fbc70f5935a5 and select if you want to purchase using ETH or USDC.
- Click on
SWAP and you’ll get mUSD once the transaction is confirmed.
Note: you’ll need to unlock before you can swap.
Step 2: Saving your mUSD- Head on over to
https://app.mstable.org/save- Current average daily APY over the past 7 days is 36.5%
- Input your deposit amount and click deposit.
Step 3: Withdrawing your savings- Go back to
https://app.mstable.org/save and click on
withdraw instead
- Once the transaction is confirmed, you get back your mUSD.
Step 4: Redeeming your mUSD- Go to
https://app.mstable.org/redeem- Input the amount of mUSD you want to redeem (meaning you want to convert back into the other 4 stablecoins: TUSD, DAI, USDC, USDT)
- If you wish to withdraw in a specific stablecoin, toggle off the redeem with all assets button and select:
- After the transaction is complete, you’ll be done!
Providing liquidity on their Balancer pools.
mStable is currently giving out MTA as rewards for liquidity providers in these 3 Balancer pools:
1. 50/50 mUSD / USDC- 50,000 MTA shared per week + BAL Rewards
- Currently has ~40m in liquidity
-
https://yieldfarming.info/mstable/usdc/ (~38.5% APY)
https://pools.balancer.exchange/#/pool/0x72Cd8f4504941Bf8c5a21d1Fd83A96499FD71d2C2. 50/50 mUSD / WETH- 50,000 MTA shared per week.
- Currently has ~18.5m in liquidity
-
https://yieldfarming.info/mstable/weth/ (~84.90% APY)
https://pools.balancer.exchange/#/pool/0xe036CCE08cf4E23D33bC6B18e53Caf532AFa85133. 20/80 mUSD / MTA- 50,000 MTA shared per week + BAL Rewards
- Currently has ~11m in liquidity
-
https://yieldfarming.info/mstable/mta/ (~195.04% APY)
https://pools.balancer.exchange/#/pool/0x003a70265a3662342010823bEA15Dc84C6f7eD54Note: These reward amount will change but for now this is what’s set for the last week of July.
https://medium.com/mstable/a-recap-of-mta-rewards-9729356a66dd/ - Rewards are also dependent on price risk. musd/usdc pool is relatively stable as it should maintain a 1:1 peg, other pools have impermanent losses.
Pro tip: To calculate impermanent loss, you can use this:
https://baller.netlify.app/According to this, if $MTA changes by 100%, you will have an impermanent loss of 3.27%
Adding Liquidity for Pool 3 (mUSD/MTA)
- Since the APY for pool 3 (mUSD/MTA) is higher, we will go with that.
- First step is getting the assets that you need which is mUSD and MTA.
- As mentioned above, you can get mUSD by buying it from
https://balancer.exchange/#/swap/0xe2f2a5c287993345a840db3b0845fbc70f5935a5 or minting it from
https://app.mstable.org/mint- After getting mUSD, go to
https://pools.balancer.exchange/#/pool/0x003a70265a3662342010823bEA15Dc84C6f7eD54 click on
add liquidity and then single asset.
- the deposit amount, unlock your mUSD and add liquidity
- Once this transaction confirms, you’ll receive BPT. This will be your share of the pool that you can redeem for your assets.
Note: the steps for this can be repeated for the other 3 pools, if you do not have USDC or ETH. Providing single asset liquidity is the same as buying the amount that you need for the pool. For example if I deposit 1000 mUSD as a single asset, 20% (200 mUSD) will be used to buy MTA and be added to the pool.
- If you have USDC/ETH/MTA you can go to all pool assets and input the amounts you wish to deposit, note that they must follow the ratios that are determined!
Removing Liquidity for Pool 3 (mUSD/MTA)
- To remove liquidity, go back to the pool address :
https://pools.balancer.exchange/#/pool/0x003a70265a3662342010823bEA15Dc84C6f7eD54- Click
remove liquidity. You can withdraw in either mUSD or MTA or 20% mUSD and 80% MTA.
Rewards
- Currently rewards for this week are set to be 50,000 MTA per pool but this may change next week with the release of their EARN product.
- Each pool provider gets both MTA and BAL tokens.
Source: https://alpha.defiprime.com/t/yield-farming-with-mstable/58