Polygon Farming Setup #1 (MAI-DAI)
If you have read the USDC/DAI guide, you know that farming is a nice way to earn a little extra money while holding your cryptocurrency.
If you haven’t read it or have never farmed before, go check it out HERE!
22% APY with a safe and stable setup is really nice, but what if we turned the risk dial up a little bit to gain a little bit more?
MAI-DAI SETUP
RISK: 1/10
PLATFORMS USED: Mai.finance, AAVE, Curve, Quickswap, Balancer.
RISK: You have to take an instant 0.25% loss before you start earning.
Steps to Success:
1) Split your collateral balance into 2 halves.
The first step is to organize your balances, if you are planning to do this setup with 0.8 ETH, simply deposit 0.4 into AAVE and keep 0.4 for the next step.
Borrow DAI from AAVE and keep your health factor above 1.5
2) Mint MAI using the second half of your collateral.
Go to (https://app.mai.finance/vaults) and open a vault that matches what your collateral is (For example, if I want to mint MAI using wETH, I would open an wETH vault)
Mint the same amount of MAI x1.01 as you borrowed DAI from AAVE.
(For example, if I borrowed 5,000 DAI, I would mint 5,050 MAI)
This action triggers an instant 0.5% loss for your second half of your collateral corresponding to the amount of MAI minted. (For example, if I minted 5,050 MAI, I would take an instant $25.25 loss)
Staying within a specific LTV ratio earns you QiDAO, Mai.finance’s governance token, which you can sell for extra profits.
3) Provide MAI-DAI Liquidity on Quickswap
Go to Quickswap (https://quickswap.exchange/#/add/) and supply liquidity to the MAI-DAI pool
Because MAI is not exactly equal to $1, you will likely need to supply 1% more MAI than DAI, this is why we minted more MAI than DAI in a previous step.
Once you have done that, put the LP tokens into the farm (https://quickswap.exchange/#/quick/) and just like that, you’re now earning 25% + 15% + 4% from quickswap, Mai.finance, and AAVE all at the same time!
