How to Farm Yield with Stablecoins Using Curve Finance

This video tutorial is about how to earn market-making fees as an LP (liquidity provider) in Curve. This is another example of how to "farm yield" in DeFi by depositing your stablecoins, letting others swap between the stablecoins in Curve, and earning a % of trade fees.
DeFi Dad walks us through the following:
🌀What is Curve and how does it work as a stablecoin DEX, earning yield for LPs (aka yield farmers)
🌀Which of the stablecoin pools might I choose to be an LP
🌀How to deposit stablecoins into a pool and become an LP
🌀How to withdraw stablecoins whenever you like
🌀The risks of being a Curve yield farmer
Curve Finance is a stablecoin DEX that allows traders to swap nearly 1:1 between the most liquid stablecoins on Ethereum: DAI, USDC, USDT, sUSD, BUSD, PAX, and BUSD. The goal of Curve is to provide permissionless trading of these stablecoins. You can imagine holding DAI, but wanting to trade into USDT to lend on Compound and earn COMP. You'd go to Curve first and swap DAI for USDT.
To learn more and try Curve yourself, go to: www.curve.fi/
For more Bankless video tutorials, check out: • Bankless Tutorials
Video by: @DeFi_Dad
Follow @DeFi_Dad on Twitter
For more DeFi Dad tutorials aside from Bankless exclusives, subscribe to DeFi Dad DeFi Tutorials on KZbin: / @defidad
----
Disclaimer & Risks: Curve Finance did not pay DeFi Dad to produce this video. This is not financial advice and you should approach all DeFi applications, wallets, and protocols with caution. Please be aware there is always risk in using DeFi, including technical risks (ie smart contracts hacks), financial risks (ie liquidity crises), and potentially admin risk (admin key compromise, governance vulnerabilities). Also, with Curve, you should consider the risk of a stablecoin peg failing.
----
🚀 SUBSCRIBE TO NEWSLETTER: bankless.substa...
✊STARTING GUIDE BANKLESS: bit.ly/37Q17uI
❤️JOIN PRIVATE DISCORD: bit.ly/2UVI10O
🎙️SUBSCRIBE TO PODCAST: podcast.bankles...
-----
GO BANKLESS WITH THESE SPONSOR TOOLS:
💸 RAMP - FIAT ONRAMP FOR DEFI (ONRAMP $100k FREE WHEN YOU MENTION BANKLESS)
ramp.network/
💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS
monolith.xyz/
🌈AAVE - LEND & BORROW YOUR CRYPTO W/O A BANK
aave.com/
📈MULTIS - BANK YOUR BUSINESS W/O A BANK! (1 MO TRIAL - JUMP QUEUE WITH "BANKLESS")
multis.co/
-----
Don't stop at the video!
Subscribe to the Bankless newsletter program
bankless.substa...
Visit the official Bankless website for resources
banklesshq.com/
Follow Bankless on Twitter
/ banklesshq
Follow Ryan on Twitter
/ ryansadams
Follow David on Twitter
/ trustlessstate
Follow DeFi Dad on Twitter
/ defi_dad
-----
Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time we may add links in this newsletter to products we use. We may receive commission if you make a purchase through one of these links. We'll always disclose when this is the case.

[@jorgepietrogiovanna8366]

The most trust worthy video on yield farming.

[@sandrinocash4607]

simple and clear, you deserve a like

[@amything]

Good old days when $8.19 eth fee was high :) Thanks for vid!

[@BradGarland]

Interest returns question - Not to get into a CeFI vs DeFI debate but why would I put my money here when the returns for BlockFI or Celsius are above 8% Total Annual APY in USD stablecoins? Wonder the logic from a risk management standpoint. Thanks for the video.

[@nicktubby9710]

Old comment, but at 7:30 the APY for the week is 60%..

[@wadjo1]

This comment aged well

[@Xsou7352]

Hahaha

[@reverendhtc]

Yes, it was really helpful. Your videos are clear and concise. Thanks for the info.

[@HelloInterloper]

How did you get to the deposit page? 😕 You clicked a tab… I can’t find the page, I can only find swapping.

[@cryptomarketspy3817]

Great video! Really helpful to walk through the platform side-by-side with this video!

[@MariusVanStraatenLovesH2O]

What a great channel. I love it. My favourite you tube resource. Thank you.

[@SelenaWhite-l5q]

Appreciate the detailed breakdown! I need some advice: I'm using a SafePal wallet with USDT and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?

[@unit0155]

Hi, great tutorial! 2 ques I hope you can answer. 1- is there no risk of impermanent loss with Curve? 2- Is this the one where they will issue Curve tokens to those who put in now? Like how Compound and Yearn did?

[@MetalBum]

I’d like to know this too did you find out unit? What’s the best place to pool or stake stable coins??? For best return w low risk

[@influencermarketing]

When the Curve gets hacked and the access to your wallet passphrase is compromised, you lost everything.

[@adamgdev]

Thank you for this thorough vid!

[@dolorismachina2]

Hi Dad. Thanks for all your tutorials. I've been wondering what would happen if Curve or any other such site goes down and never comes back. Will it still be possible to withdraw the coins?

[@KarriemLinares]

Thank you so much for this amazing video! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How can I transfer them to Binance?

[@syfodias-jedimaster]

where did you get DAI tokens? and how much is gas fee to insert them into metamask? thanks

[@friedrichnietsche6047]

Thank you for showing this!...I am all in!

[@gagloo12]

How is the interest paid? Are you paid in LP tokens? And would these tokens be automatically reinvested into the pool?

[@alexc4903]

How do you know you have earned interest. I saw when he deposited funds into the pool he showed his balance go up by the same amount, but what if you left it alone for a few weeks or months? Does the balance just keep increasing by with the fees that he is earning? How long would it take to make that $8 in gas back from that $100 deposit, or I guess a better question would be when could be tell he made his money back?

[@joselopezrisso]

Hi!, Thanks for the video. I don't understand the concept of APY, can you give me an example, please?. For instance, related to y pool, the APY in the video is 11%, what does that mean?. Because you also have a weekly APY and a monthly APY. Let's say I deposit USD 500, how can I have an idea of what I will earn at the end of the year?. Thanks!.

[@Uomosabbiaa]

Hi, APY mean Annual Percentage Yield Is basically what you get in a whole year of investment. The way you can calculate it depends on the reward distribution. For example, ADA network distribute them every 5 day. This reward is then added to the total amount you have, and this will be used to calculate the following reward and so on. It's compounding. You don't just calculate x% of 500 dollars, it will be a little bit more. I'm not sure about the distribution on Curve tho, maybe someone can clarify this in details

[@spam41912]

Really helpful for beginners.

[@0xjdunk]

I just watched this vid and it did a better job breaking down CURVE than any other vid out there. Quick question, if I deposit USDC into currency reserves, is the percentage next to the pool what I’ll be offered as APY and is it offered in the same currency I deposited?

[@brianbelitz4012]

Hi, Great Video!! I appreciate work you put into this. Are you able to change the pool after you vested or swap between pools?

[@PaddlePartner]

I do the SUSD pool! Snx rewards r to good!

[@JN003]

why are the daily and weekly APY's less than the annual APY ? At 7:30 it shows daily APY at 14.37% does than mean you get 14.37% interest on your stable coin every day ? And if you lock in for a week you get 60.33% interest paid on the table coin etc....

[@boberio9281]

Is there any risk in exposure to Tether given its potential legal problems?

[@kamilmusalat]

Seriously I need to get a grip over this, I’m still not fully getting it, but I think we are all quiet early here, this is gonna make a lot of people rich over the next 1-2 years until the bubble pops so let’s take advantage

[@tsmwukong5302]

Once we have most of defi on layer 2 it will explode

[@Property_Investment]

Hi Defi Dad, I've joined the Y pool in Curve, but have made a deposit only. Now I want to stake it...how do I go about doing that?

[@matclarke4704]

Great vlog mate and keep up the great work.

[@pajarobobo]

Fantastic explanation. Thank you for this.

[@BrownBrownOfSpades]

How did you ensure you got your Curve tokens? Did you have to add curve token too your meta mask? If so how? Did you have to put a Curve token address in the curve site for them to deposit or do they deposit your curve on the curve wallet itself?

[@openrealm]

Very helpful, thanks. What I don't understand is their CRV page for when the Curve token becomes available. How to exchange for it?

[@siegemoments5580]

How much liquidity would I need to invest in the Y Pool?

[@tensevo]

0.034ETH fee is $60 today since ETH is at $1760 If you earned 10% on $100 you would make $10 so not cover the fee. Am I missing something?

[@armandsfreibergs4069]

but how much do you actually earn on depositing anything there?

[@Jonathancaras]

The only thing missing is the ability to view your position in your wallet

[@warren5063]

Can you please explain the prerequisites? You are assuming a lot of starting knowledge, such as do I need DAI to deposit? Can I deposit another coin? What if I want to maintain exposure to ETH instead of DAI?

[@jacobsssk]

Hey defi dad, thank you that's really useful. What are your criteria for wanting or not wanting exposure for different stable coins (apart from risk of peg failure which you mentioned)? How do you track your defi taxes?

[@ln2182]

why does my metamask contract interaction keep failing? it wants me to use 58$ in gas fees. been trying with normal rates these days, which is around 100k gas units and around 100 gas price. with other stuff it normally goes but no matter what kind of combination gas i use for contract interactions it always always fails. i dont want to spend 58$ on gas fees like it wants to recommmend me to do to stake my btc i deposited lol.

[@khtan5531]

One word of caution, if you deposit on aave, you will get atokens in return. You can deposit such atokens into Curve. However, if you BORROW from aave and deposit into aave, the resulting atokens CANNOT be deposited into Curve, because you have debt position on aave. I encountered several error messages on Curve without knowing this constraint in the first place. So trying to get the word out there to other newbies. (In case you are wondering, for a short period of time, one actually gets paid on a net basis when borrowing from aave)

[@Myrmwyrm]

i'm unable to see wether or not my dai is staked after depositing. where did you get your etherscan link that shows your deposit being converted, and the LP tokens we receive in return?

[@alangeorgemehmet]

Excellent explanation. Top man.

[@changxing7690]

For what reason you will not want to expose to tether? does it have higher risk?

[@BigAtwi]

So a small question, in my case I own 9000 CRV what is the best way to utilize them to earn on their platform. Would appreciate the feedback.

[@ericksontan]

Is deposit and withdraw have almost the same gas fee? Or is withdrawing have a higher fee?

[@randymcsmash]

Great video. One extra thing I think it's worth mentioning is the slippage you would get if you choose to withdraw in anything other than the 'combination of all coins'.

[@Bankless]

Good point! Gas + slippage are 2 things to consider eating into your profits when you withdraw your LP (liquidity provision).

[@midbell]

question: isnt this essentially betting against the market? why would you hold, say, $10,000 of a USD stable coin when crypto projects could be gaining much higher % returns than the APY provided by staking said stable coins? Is this taken mostly just as a safe, low risk investment strategy?

[@carterh8480]

It's a hedge, but seem smart to allocate a piece of your portfolio into it.

[@MetalBum]

Hey is curve still the best place to go? What about AAVE or sushiswap? I wanted to use stable coins for less risk and still have a return.

[@megamonk]

isnt sushi swap an exit scam

[@MetalBum]

megamonk nope the developer returned the funds after he had liquidated. It’s news now. And then it’s fully decentralized as he left the keys to shushiswap to outsider consensus voting only!!!

[@bennyx1281]

Can you do a updated version of this video?

[@MK-of7rn]

Sorry, I don't understand why the APR shows a higher percentage for a week or month than for one year. What did I misunderstand here? Thanks.

[@cyberdine13]

Usefull, thanks! Unfortunately, curve doesn't show the same numbers like 6 months ago haha

[@anilrungta4664]

Great work Man appreciate it can you make videos for other defi platforms.

[@joec7238]

Thank you for showing this! Subbed!

[@georgekoutsakis_]

When I try to deposit my Stable Coin is keeps saying "Please approve the use of your coins". Any idea how to solve this?

[@bravefool]

Thanks for the tutorial. This really helps. Could you tell me though, how are the fees calculated and where do they go? I noticed on the Buy and Sell page that there are 2 fees mentioned - "Fee" which = 0.04% and "Admin Fee" which is 0%. I assume 0.04% is the trading fee. Who gets it? Why is the Admin Fee 0% and will that ever change? Thanks again!

[@MetalBum]

I’d like to know this too did you find out unit? What’s the best place to pool or stake stable coins??? For best return w low risk

[@lucyharry1016]

Thank you so much @ [e-mail] I got my 9 YFI

[@lucyharry1016]

@@MetalBum Thank you so much @ [e-mail] I got my 9 YFI

[@Hale-bz9pr]

do you earn CRV from any pool?

[@emilydurham7858]

It says I have availabtily of $250, but in the blue box where it says "My shares" it says zero percentage in the pool?

[@nero0502]

what do you do what the curve LP tokens?

[@JaffaTilk777]

Why occurend error "Warning! Error encountered during contract execution []". when i try add cDAI tokens in Compound pool?

[@polskieyt9191]

Cool info

[@PoulJulle-wb9iu]

gas is still high in eth. me: 8bucks wtf

[@PoulJulle-wb9iu]

im here 8 months later thinking the same thing lol. rip

[@kevinneo4992]

How long do you keep the 100 DAI in the pool for so you "get back" at least the gas fee cost?

[@ellisromero]

well if the fees were about $4 in the end, and the APY was 11%, then to earn it back on $96 is going to take about 4.5 months before break even. Then there are fees to withdraw. Important to note, that for small amounts this clearly sucks as the fees are a high percentage, however if he had deposited $1000, the fees would be exactly the same, and it would take about 2 weeks to break even on the interest...

[@MetalBum]

ellisromero What’s the best place to pool or stake stable coins??? For best return w low risk now

[@ellisromero]

@@MetalBum I wish that was an easy question to answer. Best, safe, highest!?

[@gtorres1719]

So people are getting over 5% return on BUSD a day and over 3% a day for USDT? Am I reading this correctly?

[@cryptoinformer1648]

No, it is APY. It means that day they will be earning 5% a year if interest keeps the same

[@TheJoshR7]

Noob 👨‍🌾question but if I withdrew my YFI rewards 17 hours ago why does it now show 0 pending YFI LP rewards on Curve if my ytokens still are staked? Do I need to restake my ytokens or something?

[@turbanless]

Where can I buy curve?

[@thibaudsouchal5359]

Once i deposited DAI on yearn i got yDAI in return, where can i deposit these yDAI token to farm more ?

[@MrMichaelsu]

Abracadabra.finance has these yvusdt and things like that but I don’t know how to go from yusd to yvusd and yearn finance has other things going on too with boost tokens and all this stuff. You also have to go through complicated process of providing tokens, farming spell first to access the borrowing so you can borrow these other things against your yvUSDT and then use that to do stuff with it

[@RSkyCar]

A "Bug in Smart contract", another words, I'm not in control of my funds, in that case what developers should do to avoid that type of scenario. Could you correct me if I get it wrong? Or just clarify that particular topic,(it's extremely important)because the main purpose of Defi, is to make me (the average Joe) in control of my funds.

[@coinhustle4805]

.....I hear you...and I agree to some extent.....but we cannot expect this new and very experimental technology to be perfect. Our legacy system gets hacked on the daily, but it has become an after though in society these days. Do not risk more than you can afford to lose. For some.....this is their "only" way to survive......not just simple speculation for a quick flip. I expect more hacks or bugs in the Defi space.....yet, I'm going to play with everyone else....Lol.

[@dozegamin8604]

Banks get hacked every few years dude. Remember 2008?

[@justinscorcese1434]

For the last 9 months, I have been telling people to take a look at USDQ... But they just never listen.

[@br0cket]

I don't have any stablecoin or BTC tokens to add liquidity to Curve. Sucks that I can't earn any curve tokens. I'll stick to Balancer labs for now I guess

[@Matoha21]

Hi Defi Dad, Thank you for this video. I'm trying to use Curve for the first time. I gave it a try yesterday evening but the proposed fees were around 60 USD. I tried again today and the fees were still high at 22 USD! Since I want to try with a small amount of 50 DAI it doesn't make sense at all :) Do you know if these are the nomal standard fees and are there amount thresholds above which these fees get lower?

[@whitehathackers100]

this is the problem with using the curve, transaction fees are very expensive.

[@dbassi75]

Hey Defi Dad. In my case part 3 showed up 2 options: deposit and deposit & stake. I just went on the latter. Is this option any different from just the deposit one? thanks

[@calins3209]

sheep

[@carlosthejackel2]

Have a look a celsius app it has similar APYs and for me is more user friendly

[@evilassassin]

carlosthejackel2 its CeFi not DeFi

[@BlackMagic553]

@@evilassassin CELSIU NETWORK IS SO MUCH EASIER AND SMARTER. WAY HIGHER RATES WITH ZERO FEES AND EFFORT. CELSIUS NOW HOLDS OVER 100,000 BITCOIN

[@t3kil4t3x]

Great job!

[@crazyinvestor5987]

missed the best part putting the ycrv into a vault n making 10x more yield

[@scottross9016]

how do i do that?

[@crazyinvestor5987]

@@scottross9016 zapper.fi

[@pHeastpH]

excellent video, subbed... defi degency

[@keith4556]

i just got exposure to these.

[@Rahulvisu]

ycurv is charging very high fee

[@claudioborquez3394]

I see very good questions on the board but no replies

[@TurboShred13]

daaaaayuuuummm, yam got wrekt!!!

[@promocontent6982]

$8 to get in but also $8 to get out

[@fuklingholly8813]

$ yfi = $ crv in the future is very much needed in big investments for big entrepreneurs in the world, because they have big projects that are carried out by their developers, considering that many altcaoin have already damaged their prices because of the drop in demand and investors need new crypto, namely $ crv, let us support it ,possible crv price to $1000-$9000,thank you.

[@Bigstar0920]

Never buy curve (crv). The dumping is serious. I don't know who's dumping it, but every time the price goes up, it's serious. Never buy even if the trend is likely to go up. This coin is definitely a scam.

[@24rbjhb2j4hb]

LOL I spent like 500$ the other day in gas fees

[@kamilsonsalla2491]

ehh, 0,66$ gas fee, I miss those times

[@coldstart-Z32]

laughing at how low gas fees are here!

[@padmach5332]

Gas prices are too high

[@oliverli9630]

11% isn't very cool compared with arbitrage

[@freeeka]

tell me more

[@dustindewind_]

Great at 1.25x speed

[@totoafrika5568]

Looks like a commodore 64. 😂

[@ayobamiayobam1876]

I Just bought some $FOR bags on #MXC_Exchange market depth is looking good, buy order becomes thicker. Accumulation time guys don't be left out!!

[@josephgrabert8689]

A US group has been working for 3 years on a blockchain protocol and they are bringing it to the marketplace on a DeFi play on etheruem. Do you want to know about it? Go check out Opes.finance on telegram.

[@jordandesigns5797]

The UI makes me want to puke

[@keith4556]

after you with the bucket. they trying to appear clever with the retro look but its like using a ascii typewriter to draw with.

[@calins3209]

just another ponzi scheme for newbies. I can`t wait to come back here when the bubble bursts

[@kays8392]

I want help tell me how to contact you