Found another interesting pool to be farming and earning a little over 60% APY in yields. To be clear there are several steps to getting into this pool and we will look at the steps and see how difficult it really is.
Stable Coins ending with .e?
Originally Avalanche had a bridge to Ethereum known as "Avalanche Ethereum Bridge" (AEB), but due to high gas fees from ETH the Avalanche developers introduced a more cost effective bridge to transfer assets on Ethereum chain onto Avalanche. The more cost effective bridge was called "Avalanche Bridge" (AB).
With the success of AB eventually AEB was shutdown. However since tokens like USDC and USDT on Ethereum were ERC tokens when they bridge across to Avalanche the tokens were minted as USDC.e and USDT.e respectively. This is due in part that the original USDC and USDT that were transferred from AEB was still throughout Avalanche. Therefore to delineate old stable coins from the new stable coins Avalanche added ".e" to the new stable coins.
The snapshot above shows transfer of USDC on Ethereum to Avalanche will result in holding USDC.e on Avalanche. Same goes for the other stable coins.
HakuSwap
HakuSwap has a native token HAKU and is currently $0.36. Rather than going through the details of the platform I looked into their pools for farm and notice a really nice stable coins pool.
With over a $1 in LVT and providing nearly 36% APR it looks like a great investment for sitting USDT.e and USDC.e. Of course you would have to exchange your stable coins to the ones on Avax if you don't have the coins on Avax. The rewards are given out as HAKU tokens. Now without enough knowledge of what HAKU utilities are my main focus was to earn the yield. So plan is to sell the HAKU earned and reinvest the proceeds back into the pool to continue earning more stable coins. There is a better way to invest in this pool, and here is the next step.
Avalanche's Auto-compounder Yield Wolf
https://yieldwolf.finance/avalanche
Yieldwolf serves multiple chains in auto-compounding rewards farmed from pools. Very similar to that of Beefy Finance. Yet what I have found interesting is that Yieldwolf offers pools that can have auto-compound that does not exist in Beefy Finance.
Specific to the pool we are looking at in HakuSwap, Yieldwolf can auto-compound the earnings to result in a staggering +60% APY for investing in the pool through Yieldwolf. This is the step you need to take to enhance your earning potentials.
The end result is a yield of 0.13% APY a day! A day of yield in this pool will beat out most world financial bank's savings and checking rates. Just crazy.
Conclusions
Let recap here. In order to earn upto to 60% APY in stable coins you need to transfer USDT and USDC to Avalanche blockchain through AB. Then deposit the tokens 50/50 into the HakuSwap pool via Yieldwolf. From Yieldwolf you stake the liquidity into the pool. Yieldwolf will than automatically sell your daily earned rewards and add the proceeds into your portion of the pool which in turn will increase your yields earned.
You never really have to go on HakuSwap to perform all this as Yieldfarm has the specific commands to have this done on their platform.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
LeoFinance = Financial Blog
LeoDex = Hive trading exchange for Secondary Tokens, Low 0.25% fees for deposits and withdraws.
HiveStats = Hive stats per user
LeoPedia = Informative content related to anything about Crypto and how to make financial gains in crypto!
CubDefi = LEO Finance's Defi with CUB Token