Earn 38% APY Farming with MVI
Disclaimer: This is not financial advice. This post is not intended as a recommendation or endorsement to farm MVI. Please do your own research
Welcome to the very first Zapper Alpha Leak! Our goal is to spotlight more voices in the Zapper community to share new ideas for participating in the DeFi markets.
Today's guest post was written by CoFounder of EthHub, Founder of The Daily Gwei newsletter, and investor in Zapper--Anthony Sassano.
The Alpha Leak
Earn 38% APY in INDEX governance tokens while gaining broad exposure to the potential upside in the new Metaverse Index (MVI)
Background on MVI
While NFTs have recently become a major talking point in mainstream news about crypto, the Metaverse Index (MVI) is designed to provide exposure to this uptrend through a basket of tokens powering gaming, sports, entertainment, and music taking place in the blockchain-powered Metaverse. This Alpha Leak will accomplish 2 goals: gaining exposure to that potential upside in Metaverse related tokens as well as being rewarding for bootstrapping the liquidity of this new index MVI by the Index Coop.
Length of Program
This liquidity mining program started on April 8th and lasts through May 9th.
There is an annual streaming fee of 0.95%, meaning the Index Coop can claim up to 0.95% of the total market cap of MVI as fees each year for the Index Coop treasury.
One is exposed to smart contract risk in Set Protocol but you can mitigate that risk by buying cover for Set Protocol v2, the protocol powering MVI, from the likes of Nexus Mutual or from pay-as-you-go DeFi insurance by Armor. Being a liquidity provider for MVI/ETH also can result in impermanent loss, leaving you with different amounts of MVI and ETH than what one deposited initially into the Uniswap liquidity pool (LP). A liquidity crisis could result from an LP withdrawing a massive amount of liquidity from the MVI/ETH pool.
How to Earn 38% APY Farming with MVI
If one doesn't already have MVI, ETH, or a token you're willing to swap for the MVI/ETH LP, one can trade for the best rates at zapper.fi/exchange.
- Assuming you already have MVI or ETH, go to the Zapper Pool page to add liquidity.
- Search MVI to find the MVI/ETH LP in Uniswap and click Invest.
- One can deposit a single pool token (MVI or ETH) or choose to add liquidity with an unrelated token like WBTC and Zapper will auto-swap for 50% MVI + 50% ETH before depositing into the Uniswap liquidity pool.
- After 1-2 transactions depending on whether one deposits with ETH or an ERC20 token requiring Approval + Confirmation, one's balance for the MVI/ETH LP will show up under Current Investments.
- To start earning INDEX rewards, go to zapper.fi/farms.
- Click Show Available to Stake and you will see the MVI/ETH LP with a green button to Stake.
- Click Stake and follow the prompts to Approve and then Confirm depositing the LP token to start earning INDEX rewards. The first Approval transaction will cost less gas while the second transaction deposits the LP and will cost more in gas.
- Once the LP is staked, one is earning INDEX rewards every block and they can return to this dashboard to claim INDEX tokens by clicking Claim Rewards.
That's all you need to know! Here's a number of helpful resources to get you started.