A stepwise guide to earn high returns through Liquid Staking on Polygon

Jun 12, 2022
|3 minutes read
liquid staking on polygon

Have Matic in your wallet or planning to invest in some good farming opportunities? Then, you are at the right place. 

In this blog, we will discuss how you can utilize Matic to get MaticX and then pocket high yields, but be cautious of the risks associated with the strategy while using DeFi and DEXes.

MaticX is Stader’s liquid staking token. It represents the Matic you stake with Stader and opens up a plethora of DeFi possibilities. Read more about MaticX here

Let’s talk about the strategy now:

Image via: Stader 

Step 1: Stake Matic to mint MATICX 

Stake your Matic on Stader and mint MaticX. 

Image via: Stader 

Staking your Matic with Stader, which is on the Polygon mainnet, will help you save on gas fees due to low gas fees on Polygon as compared to Ethereum while earning a handsome APY of ~8.5%.

Step 2: Provide Liquidity on QuickSwap DEX

Go to QuickSwap at the MATIC-MaticX page. Follow both steps on this page (provide MATIC-MaticX liquidity, then stake your LP token).

This will help you get your hands on ~20% APY while avoiding big impermanent loss, since it’s a MATIC-MaticX pair.

Image via: Quickswap 

Step 3: Stake Liquidity Provisioning rewards in Beefy Finance 

Once you have your LP rewards from QuickSwapDex, you can stake them in the 

MATIC-MaticX LP vault on Beefy finance.

Beefy.finance, a low commission multi-chain yield optimizer will auto-compound your rewards to help you bag a juicy ~19% APY along with MOO token receipt.

Image via: Beefy

Step 4: Borrow $MATIC interest-free on Market.xyz

With the MOO tokens, you can now borrow MATIC on Market.xyz.

The Loan-To-Value (LTV) is 50% and based on your risk appetite, you can choose any percentage below the LTV percentage.

Image Credit: Market

Step 5: Use $MATIC and repeat the Loop 

Now that you have $MATIC again, you can again repeat the above-mentioned steps and earn rewards in a loop.

If you just hold your mooTokens, your APY will be 20%. If you complete one loop (deposit the mooTokens in Market.xyz, borrow MATIC, deposit in MATIC-MaticX) then  total return on your initial investment will rise to ~29% after completing all the five steps. 

Disclaimer: Stader, Quickswap, Beefy, and Market are audited. However, liquid staking strategies entail protocol risks, market risks, smart contract risks, and more. Treat this strategy as experimental, and never deposit more money than you can afford to lose.