Exploring a ~46% APY strategy with CRV on Polygon

aishwary
-
Apr 15, 2022
|3 minutes read
farm of the week

Users with smaller wallets are not able to participate in the curve wars due to the high cost of transactions on Ethereum for claiming cvxCRV staking rewards regularly and also long capital commitments involving locking CVX for 16 weeks and collecting fees and bribes.

This post will help you understand how it is possible to outperform both CRV and cvxCRV staking using CRV (~46%) as the principal asset on Polygon.

Strategy Overview to earn the rewards:

Steps to deploy the strategy:

  1. Create a vault on QiDao with CRV
  1. Borrow MAI worth 50% of the $value of your CRV collateral.
  2. Sell 33% of the MAI for USDC using 1inch. We sell 33% as the current ratio of MAI:USDC in the LP is 2:1.
  3. Go to Arrakis Finance which is a uniswapv3 LP optimiser.
  4. Find the MAI-USDC pool and select the view option
  1. Select the “Deposit and Stake” option
  1. Approve MAI and USDC you want to supply to the pool
  1. Select “max” option for MAI and deposit and stake
  1. Periodically claim the wMATIC rewards using the “CLAIM” option and sell wMATIC for more CRV using 1INCH.
  2. Sell the weekly QI vault incentives for CRV also using 1INCH.
  3. Keep compounding rewards to maximize returns.

Disclaimer: Curve1Inch and QiDAO are audited. However, farming 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.