Earn Up to 20% APY with imUSD
Disclaimer: This is not financial advice. This is an educational resource that should never be interpreted as an endorsement to buy any digital assets mentioned. Please do your own research. Please also be sure to check the updated APY being earned because rates can go up and down with mStable swap volume, the number of imUSD holders, and lending rates on Aave Polygon market.
mStable is a DeFi protocol for building non-custodial pegged assets with just over $58.6M TVL on Ethereum. mStable supports numerous mAssets, including mUSD which is pegged to the US Dollar and mBTC pegged to the price of BTC. It also includes an automated market maker that gives the liquidity provider the option of minting a risk-minimized meta-stablecoin (mUSD) or a yielding tokenized savings account (imUSD). On Ethereum, mUSD is backed by a basket of stablecoins including DAI, USDC, and USDT and sUSD.
Launching mStable Save on Polygon
Today, mStable launched a number of their most popular products on the Polygon chain, which has recently seen new product support from a number of the top DeFi teams in Ethereum.
- mUSD: A meta-stablecoin where the underlying DAI, USDT, and USDC will all be programmatically lent to Aave Polygon markets to accrue interest for imUSD holders
- Stablecoin Swap: trade between DAI, USDT, and USDC at almost zero transaction cost. Swap fees go to imUSD holders
- Save: A DeFi savings account, where you can directly deposit DAI, USDC, USDT, or mUSD in exchange for holding imUSD (interesting-earning mUSD) to accrue swap fees and interest from the Aave Polygon markets.
As of this writing, there is about 1.16M mUSD minted in the last 8 hours.
How to Earn Up to 20% APY with imUSD
Here's how to get started earning 2 forms of yield which combine to yield now fluctuating between 15-20% APY, as of this writing, with mStable's imUSD just launched on Polygon, including lending interest and mStable Swap trading fees.
- First, one must migrate DAI, USDC, or USDT to the Polygon (Matic) blockchain using Zapper Bridge. You only need 1 of these tokens and the Matic PoS Bridge which powers Zapper Bridge does not support mUSD yet. Refer to this tutorial on how to use Zapper Bridge if you're new to Polygon.
- Once you have DAI, USDC, or USDT available on Polygon, go to mStable Save app page on Polygon linked here. Be sure to flip the network tab in the top left to Polygon.
- Connect your MetaMask account with transferred DAI, USDC, or USDT.
- Under Deposit, click on the USDC icon and you'll notice there's options to deposit with DAI, USDC, USDT, mUSD, or MATIC.
- Choose whichever stablecoin (DAI, USDC, USDT, or mUSD if you minted it on the MINT tab) and specify how much to deposit.
- Choose Approve Exact or Approve ∞. My preference is Approve Exact in case of an unexpected crisis where somehow a hacker gains control of the smart contract so that they cannot spend all of my tokens with "infinite approval."
- Choose a transaction speed but most days Standard will confirm the transaction in 10 seconds or less. Then click Confirm on MetaMask.
- After the Transaction pending turns to a green Transaction confirmed, click the blue Save and confirm the final transaction on MetaMask to finish the job.
- Just repeat Steps 4-8 if you intend to deposit others types of stablecoins such as DAI, USDC, USDT, or mUSD to earn with imUSD.
You'll now accrue lending interest and trading fees in the form of a native interest rate for holding imUSD! You can track the real-time value of your underlying stablecoins + accrued interest and fees by going to your Zapper Dashboard and looking imUSD in your Wallet.