Cryptocurrency lending is a popular investment form, along with Staking and Liquidity farming. Lenders or investors lend Stablecoins or other cryptocurrencies to Borrowers in exchange for interest payments. This can be a source of income, and we are going to dive right into Lending on EasyFi in this article.
The fees on Ethereum Network are a bit unbearable now. Having this tutorial on other popular DeFi Lending platforms like Compound would obviously cost more than I can afford, which makes EasyFi Network the perfect platform to get you started because it is built on Layer2 Polygon, which is characterized by fast transactions at near $0 fees. First you’d need to send some funds from the Ethereum mainnet to the Polygon/Matic mainnet, it’s easy and you can see how to do that here.
Now we’re ready to go!
Make sure you are on the Protocol V1 and select a coin you want to Lend from the USDT, DAI, Ether and USDC options.
Lets supply some USDC by clicking on the USDC option.
If you don’t have any of these coins for lending, you can exchange for any of them on QuickSwapDEX. Note: At 0.20% APY you may need a lot more USDC than in my illustration to enjoy the full profitability of DeFi Lending.
You can also withdraw your supplied USDC from this interface.
When you supply your coin for Lending on EasyFi, you should see the chosen coin card turn green, and your supplied amount visible at the left side of your screen, under Supply Balance.
Thats it! In this case we can see that we have supplied $0.2799 for lending at 0.20% APY (Time to retire and buy a yacht!)
This amount I supplied isn’t much, and will not earn a lot even with compounding. That’s why I suggested earlier you’d have to lend a bit more than I did, but wait that’s not all. When you supply your coins for lending, the EasyFi system rewards you with e-Tokens directly to your connected wallet. These e-tokens can be:
- Supplied for Liquidity Farming.
- Serve as a form of receipt.
Lets go through these uses of e-Tokens.
- LIQUIDITY FARMING WITH YOUR E-TOKENS
EasyFi Network recently launched a new yield farming program, enabling USDC, DAI and USDT lenders to deposit their e-Tokens and earn from a daily 120 $EASY rewards pool for each of the 3 Stablecoins. In summary, Lenders can earn from a 120 $EASY daily reward pool.
Read the full details here:
Simply Click on Farming on the EasyFi dashboard. Then on Liquidity Farming. Note: This is only available on Layer2 Polygon/Matic. Deposit your e-Tokens to your supplied Stablecoin market.
We supplied USDC so we have to deposit our eUSDC e-Tokens to the specified card.
Click Deposit on eUSDC. Obviously you would want to deposit all your eUSDC, and confirm the transaction.
Now we can Manage our e-Tokens:
- Withdraw e-Tokens from liquidity farming.
- Claim rewards.
- Deposit more e-Tokens.
You can easily view how much is locked in each lending market by checking EasyScan, that way you can decide better which lending market can be most profitable for Liquidity farming.
2. E-TOKENS AS A RECEIPT
e-Tokens can also serve as proof that you supplied to a market on EasyFi Network. These e-Tokens appear in your connected Metamask wallet immediately you supply to a market.
To Borrow you need to first supply an asset to the market, and use your supplied asset as Collateral by clicking the Collateral icon beside your supplied coin. Confirm the transaction and the icon should turn blue.
We already got some USDC interest. $0.2779 to $0.2800
Now that we have enabled our USDC as collateral, we can go ahead to borrow some DAI or any other Stablecoin if we want. There is so much that can be done here!
This is the end of our introduction. Now we know about Lending on EasyFi Network:
- We know we earn at a certain rate when we Lend.
- We know we can deposit e-Tokens gotten from Lending, to earn incentives through Liquidity farming.
- We also know that we can use our supplied asset as collateral to borrow other assets.