Users can now deposit their sUSD and earn better interests on yield optimization platform Idle.
Idle functions by automatically balancing funds to ensure higher interest rates are attained while simultaneously reducing all forms of risks. With this in mind, users can now deposit and store sUSD on Aave as it is currently the only platform where users can earn interest on their sUSD.
As time goes on, more and more sUSD pools are expected to go live, each with its specific interest rates. This is where Idle comes in. The tool will automatically rebalance sUSD, directing it to the pool with the highest interest rate. This, in essence, will subsequently result in better returns on users’ sUSD.
Steps to maximize your yield with ldle
There are currently two methods by which users can earn better yields on Idle.
- Simple sUSD Yield method – To learn optimized yield using this method, users first need to obtain sUSD from decentralized exchange platforms like Uniswap, Kyber, Curve or 1inch. Next, they deposit sUSD on Idle and immediately start receiving optimized earnings.
- sUSD Yield Farming Method – This method requires users to first acquire Synthetix Network token SNX. They then need to stake SNX on Mintr so as to mint sUSD. The freshly minted sUSD is then deposited on Idle. With this method, users will earn both staking rewards from SNX and optimized yield on sUSD
Remember you can acquire SNX from centralized exchanges like BalancerLabs, Uniswap, Kyber, and 1inch, or from centralized exchanges like Poloniex, Kucoin, etc. Staking SNX can be quite technical so it is advisable that interested persons go through the article “What you need to know before staking SNX for the first time” before actually staking their SNX.
Though still under development, there’s a third method expected to go live soon. It is the Governance token yields. With this method, users will be able to earn popular tokens like BAL and CRV by simply depositing sUSD into protocols.
Although Idle is focused on increasing yield while also reducing possible risk occurrences. It isn’t 100 percent free from manipulation and risks. This is because there’s a high possibility that a pool with supposedly high yield has been compromised. This could subsequently lead to a partial or complete loss of funds. Users are therefore advised to bear in mind this possible risk while depositing their funds into lending pools.
Find out more on Idle lending pool risk scores, an overview of its DeFi Score system and Risk-Adjusted Allocation Strategy here.