Farms of The Week🌾: Analyzing High-yield Opportunities on DeFi Kingdoms

Garrett
-
Apr 05, 2022
|6 minutes read
farms of the week

Also, an overview on a ~33% APR with USDC-ETH LP on Beefy Finance.
This is part of the Farms of the Week series – providing you intel into the freshest crypto yield for the most honest farmers only. –By Garrett and Edward Bush

3347% APY on xJEWEL-JEWEL in DeFi Kingdoms’ Crystalvale

⚠️THIS YIELD FARMING STRATEGY INVOLVES AN AUDITED PROTOCOL WITH A PSEUDOANONYMOUS TEAM. USE THE INFORMATION BELOW AT YOUR OWN RISK. NEVER YIELD FARM WITH ASSETS YOU CAN’T AFFORD TO LOSE.

With the Avalanche Foundation spending $290 million to promote their subnets, users are becoming more excited about the potential of play-to-earn on the Avalanche blockchain. This farm of the week will explore the first Avalanche Subnet, the new DeFi Kingdoms Chain, and its yield farming opportunities present in Crystalvale.

What is DeFi Kingdoms?

DeFi Kingdoms (DFK) is a play-to-earn MMORPG (massively multiplayer online role-playing game) originally deployed on Harmony, the layer-one blockchain. It has taken many complicated aspects of DeFi and non fungible tokens (NFTs) and seemingly integrated them into a fun user experience. Now, DeFi Kingdoms has recently introduced a brand new realm named Crystalvale. This realm is built on the DeFi Kingdoms Chain (the first Avalanche subnetwork).

Image via Medium

Bridging funds to DeFi Kingdoms’ Chain

The bridging process to get the native currency of JEWEL (which is needed to pay for gas fees) on DeFi Kingdoms Chain is a two-step process.

  1. Bridging to Avalanche
    • Note that Avalanche requires its native AVAX token to pay for gas fees instead of ETH. You can bridge AVAX and other tokens like USDC to Avalanche via the Avalanche Network Bridge. Upon a first successful bridging of a value over $75, you will be airdropped 0.1 AVAX for gas fees. You can add the Avalanche C-Chain to your wallet via Chainlist.
  2. Bridging from Avalanche Network to DeFi Kingdoms’ Chain 
    • Head to the DeFi Kingdoms Website, press “START PLAYING
    • Connect your wallet and select the Avalanche Network on your wallet
    • You should be greeted by “Snow Sage Ellia”, click on her image
    • Press “Get Started
    • Proceed by selecting “Swap for JEWEL”
    • Follow the displayed instructions in order
    • Finally, press “Travel to Crystalvale” and confirm the addition of the DFK Chain before switching to it

Farming in Crystalvale 

After you’ve bridged funds over to the DeFi Kingdom Chain and have your wallet and JEWEL ready for use, you could consider the following yield farming strategy:

  1. You will need to buy xJEWEL for liquidity provision. To prepare venture over to the “Marketplace” (please refer to the image below), click on the “Trader” and swap half of your JEWEL for xJEWEL
  2. Now go to the “Druid” in the marketplace, press “Create Pool”, input the amounts of JEWEL and xJEWEL that you wish to offer liquidity with. 
    • Confirm any necessary approvals/transactions.
  3. Head over to the “Gardens
    • Press on “Seed Box
    • Stake your xJEWEL-JEWEL LP tokens
    • You are now earning the specified APR on your deposit
  4. To claim rewards, head over to the “Harvest” section in the “Gardens
Image via DeFi Kingdoms

DeFi Kingdoms has been audited. However, this staking opportunity entails protocol risks, market risks, impermanent loss risks, smart contract risks, and more. Treat this yield farm as experimental, and never deposit more money than you can afford to lose. 

Up to ~33% APR on USDC-ETH LP at Beefy Finance

⚠️THIS YIELD FARMING STRATEGY INVOLVES AN AUDITED PROTOCOL. USE THE INFORMATION BELOW AT YOUR OWN RISK. NEVER YIELD FARM WITH ASSETS YOU CAN’T AFFORD TO LOSE.

Beefy Finance, a decentralized, multi-chain yield optimizer, is offering additional yield on USDC-ETH LP tokens should you choose to stake within one of their Arbitrum Network vaults. One of the safest platforms to provide USDC-ETH liquidity is SushiSwap

SushiSwap is a decentralized exchange that utilizes the automated market-making (AMM) model. Due to the lack of an order book, trades are facilitated using liquidity pools, as a result liquidity providers are rewarded with trading fees generated by the platform. These fees are paid out in the native SUSHI token.

Image taken from Beefy Finance

Bridging funds to Arbitrum Network

Before diving into this staking opportunity, note that the layer-two solution Arbitrum requires ETH to pay for gas fees. You can bridge ETH and other tokens like USDC (a stablecoin) to Arbitrum via the Hop Protocol Bridge

Also, you’ll need to have Arbitrum added to your browser wallet. You can use Chainlist to add the Arbitrum One network if you haven’t already. 

Autocompounding USDC-ETH LP tokens on Beefy Finance

Once your wallet is completely set up, please follow the steps listed below:

  1. Head over to SushiSwap, enter the DApp and make sure you are on the Arbitrum One network
  2. You will need USDC and ETH to provide liquidity. Assuming you have bridged ETH tokens over, you can swap half of them for USDC on SushiSwap under the “Trade” tab
  3. Once you have your USDC and ETH, head over to the “Liquidity” tab and select “Add
    • Input the amount of USDC and ETH that you wish to offer liquidity for
    • Approve any necessary tokens and confirm it in your wallet
    • Press “Confirm Adding Liquidity” then “Confirm Supply” before confirming the transaction in your wallet
    • You now have USDC-ETH LP tokens
  4. Proceed by heading to Beefy Finance
    • Select the Arbitrum Network symbol
  5. Locate and select the USDC-ETH LP pool with the specified platform as “SUSHI
    • Click on the USDC-ETH LP pool
    • Press “Connect Wallet” and your LP tokens should appear
    • Input the desired amount of USDC-ETH LP tokens that you wish to stake or simply press “MAX
    • Press “Deposit All” and confirm the necessary transactions in your wallet
  6. Your rewards should compound automatically and your USDC-ETH LP position should grow

Beefy Finance has undergone several audits. This staking opportunity entails cross-protocol risks, market risks, impermanent loss risks, smart contract risks, and more. Treat this yield farm as experimental, and never deposit more money than you can afford to lose. 


All info in this publication is purely educational and should only be used as research. DeFi Pulse is not offering investment advice, endorsement of any project or approach, or promising any outcome. This post is prepared using public information (which does not account for specific goals or financial situations). Be careful and keep up the honest work!