Written By
DeFi Dad
Community Lead

How to Earn Up to 113% APY with SushiSwap on Polygon

May 15, 2021

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 or down with trading fees and the price of SUSHI and WMATIC rewards.

SushiSwap is one of the highest trading volume automated market makers (AMMs) in the world. SushiSwap boasts about $4.5B in liquidity and has traded as high as $1.2B volume in a single day. While SushiSwap trades the majority of its volume on Ethereum, it has recently launched liquidity pools for trading on Polygon, BSC, Fantom, xDAI, Avalanche, HECO, Harmony, and OKex.

New SushiSwap AMM on Polygon

Like other premier DeFi teams, SushiSwap has launched support on Polygon in the hope of offering DeFi users more options to trade and earn with cheaper gas costs than on Ethereum. You'll find a number of their most popular products also supported on Polygon including:

  • BentoBox - vault infrastructure that provides extra yield on deposits with flash lending, strategies, and fixed, low-gas transfers.
  • Kashi markets - a lending protocol like Compound/Aave but with isolated markets instead of one large market, where one can choose to lend against specific collateral in case the borrower defaults.
  • Yield - a SushiSwap aggregator to stake liquidity provider tokens (aka SLPs) or Kashi tokens (kmTokens) to qualify for SUSHI and WMATIC rewards.

Subsidized WMATIC Rewards for SushiSwap Polygon LPs

For those willing to provide liquidity on SushiSwap Polygon, there are 9 pools currently being rewarded in the Yield tab with both SUSHI and WMATIC rewards. Polygon's treasury is subsidizing the program to help bring more liquidity to SushiSwap Polygon. As of May 15, 2021, the following liquidity providers can earn both SUSHI and WMATIC rewards across these pairs in addition to the usual trading fees accrued by liquidity providers, with a high of 113% APY for the WMATIC / WETH pool.

  • WMATIC / WETH
  • AAVE / WETH
  • USDT / WETH
  • USDC / WETH
  • DAI / WETH
  • CRV / WETH
  • USDC / USDT
  • WBTC / WETH
  • LINK / WETH

How to Earn Up to 113% APY with SushiSwap on Polygon

Here's how to get started earning three forms of yield on SushiSwap Polygon including WMATIC, SUSHI and trading fees.

  1. First, one must migrate assets to the Polygon (Matic) blockchain using Zapper Bridge. I might first check which of the liquidity pools for earning yield is where I want exposure and then bridge one of those assets to Polygon to save gas fees. Refer to this tutorial on how to use Zapper Bridge if you're new to Polygon.
  2. Once I have an asset I can trade or use to invest liquidity, go to the Zapper Pools page.
  3. Be sure to select the Polygon network on Zapper and you should be prompted by MetaMask to either change to Matic Mainnet or given the option to add this network setting.
  1. Go to the Yield tab on the SushiSwap Polygon app to double-check which liquidity pool has assets with ideal asset exposure (ie stablecoins vs a volatile pair with WMATIC) and the best rate offering. Be sure to not check the Yield options on SushiSwap on Ethereum accidentally!
  2. I might choose to enter the WMATIC / WETH pool because it's offering 113% APY but let's assume I instead already hold WETH or WBTC on Matic and so I wish to maintain that exposure and take advantage of the 38.51% APY providing liquidity in this pool.
  3. After I identify the right yield opportunity, I go back to Zapper Pools and search for the liquidity pool, choose any token to add liquidity with, and click Invest. Zapper will swap whatever token I deposit into the correct 50/50 proportions in the liquidity pool. I will then approve 2 transactions: one to Approve spending my tokens and a second to Confirm depositing the tokens.
How to Invest Liquidity in SushiSwap on Polygon
Invest in a few clicks with Zapper Pools
  1. After my balance is confirmed deposited into SushiSwap, I can return to the Yield tab on the SushiSwap Polygon app to find the pairing I just invested in.
  2. Once I click on the pairing, I see the option to deposit my balance of SLP token (SushiSwap Liquidity Pool).
  3. I can Approve to deposit the SLP, confirm on MetaMask, and then click Stake, followed by one last MetaMask approval.
Stake with SushiSwap to Earn SUSHI and WMATIC Rewards

I'm now accruing trading fees automatically to my staked SLP but I also can choose to "harvest" my earned SUSHI and WMATIC rewards whenever I want by returning to this Yield tab on SushiSwap Polygon. Thankfully, you can track the real time value in the SushiSwap liquidity pool on Zapper Dashboard under Staked or SushiSwap, including any earned WMATIC and SUSHi rewards under Yield Farming.

Get started with SushiSwap on Polygon!
Invest liquidity with Zapper Pools

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