kyberswap

Lido Finance is one of the biggest Ethereum-based liquid staking providers. They have now formed a partnership with multi-chain DEX aggregator KyberSwap. As a result, there are two new farms with great incentives. These are the wstETH-USDC and wstETH-LDO farms. You can find both these farms on Ethereum.

So, let’s have a look at what’s interesting about this KyberSwap news. The following video gives you an idea of what KyberSwap is about.

A Safe Earning Strategy in a Bear Market

In a bear market, it’s not that easy for an average investor to continue to earn profits. Still, this is what we like to achieve. Times are hard, and we appreciate every potential source of income. Especially if it’s a safe earning strategy. Well, this is precisely what KyberSwap offers with these 2 new pools.

KyberSwap had already successful campaigns with wstETH and stMATIC. They have been running these campaigns on Arbitrum, Optimism, and Polygon. Now they extend this strategy to the Ethereum chain.

Besides a wstETH-ETH pool, they now offer two farms. These are the wstETH-USDC and wstETH-LDO farms. Here are the farm details,

wstETH-USDC (0.04% Fee Tier) ➡ (Pool rewards: LDO + KNC)

LDO-wstETH (0.3% Fee Tier) ➡ (Pool rewards: KNC)

To clarify, KNC is the KyberSwap native token. It’s used for governance, liquidity mining as well as a collateral asset. It is available on most major exchanges, including Binance or Coinbase. The picture below shows the three current ETH farms. Our emphasis is on the two mentioned farms. 

KyberSwap

Source: KyberSwap Ethereum farms 

What Is the Best Way to Farm Your ETH?

Currently, the wstETH farm on KyberSwap is one of the best ways to farm your ETH. The APR is at 57.83%. This asks for two questions, what is wstETH, and how to get it? So, here we go.

  • What is wstETH? — wstETH is a wrapped version of the stETH token. This, of course, begs the question, what is the stETH token? Well, if you stake your ETH on Lido, you receive the stETH token. This is a derivative token, and you can use it in DeFi. For example, for lending or in pools and farms. wstETH is a non-rebasing token. This is in contrast to stETH, which is a rebasing token. Rebasing means that the supply gets automatically adjusted by an algorithm. This keeps the value constant. In other words, stETH remains stable. That helps the wrapped version, wstETH to stay stable as well. Its price doesn’t change daily, reflecting the staking rewards you are earning. But you are earning them.
  • How to get wstETH? — If you prefer to keep it easy and simple, KyberSwap offers wstETH. You can swap it directly on their platform. You can take advantage of using any of the 12 chains they support. With their multichain bridge, you can bridge assets between these chains. For instance, Arbitrum, Optimism, Ethereum, Avalanche, or Polygon. You can also wrap and unwrap stETH at the Lido platform.

Now you’re all set to farm your wstETH. The picture below shows the UI to deposit wstETH and USDC to the farm. This farm currently has an APR of 57.75%. However, be aware that this percentage can change.

KyberSwaps

Source: KyberSwap

How to Farm Your wstETH in the wstETH-USDC Farm?

To farm your wstETH in the wstETH-USDC farm, you first need to make a deposit. This will give you an NFT that you can use for farming. So, let’s have a look at how this all works.

Deposit liquidity in the wstETH-USDC farm
  • Under the Earn button, select Farms. 
  • Once you’re on the Farms page, select ‘Elastic Farms’’. 
  • Now you can add liquidity to this pool. 
  • You receive an NFT that stands for your liquidity position.

See the picture below, the button and the Elastic Farms option are inside a yellow box.

KyberSwap
KyberSwap Ethereum farms
How to Stake in the Farm?

This is easier to do. So, let’s see how this works.

  • Under the ‘Earn’ button, select ‘Farms’.
  • Once there, you select the wstETH-USDC farm, in which you just deposited liquidity.
  • Now click on ‘Deposit’ and add the ID number of your NFT.
  • Click on ‘Deposit Selected’.
  • Approve the transaction in your wallet and wait for confirmation.
  • It is important to click on the ‘+’ button, after you enter the NFT ID. This starts the staking process. If you don’t enable the ‘+’ button, you haven’t deposited your liquidity position NFT.

In this KyberSwap blog article, you can find more information on these processes. You will also find information about harvesting and claiming rewards. Furthermore, if you would like to unstake, this is also described.

Conclusion

We showed you how you can earn a high APR on the KyberSwap wstETH-USDC farm. This is a safe way to earn passive income in this otherwise downward market. With a current APR of around 57%, it is well worth looking into.

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