StakeDao for the super dummy
If you are here, then you are a dummy, but a super one, after all you are already part of DEFI, years before mainstream :) so let’s get started:
I will not explain what is StakeDao, you can check medium here and the website here. we will talk baby steps:
Adding liquidity in uniswap for ETH-SDT
the idea behind liquidity providing for AMM( automated market makers) is to create pairs that could be traded! Why would you provide liquidity? well, they will give you part of trading fees, 0,3% last i checked.
To add liquidity you need same amount of a pair, here SDT and ETH.
You will get the interface below :
And click Add Liquidity (instead of insufficient ETH balance).
You will get a token that represents your liquidity, it is UNI ETH-SDT token.
Normally it will appear on your metamask, otherwise, in metamask click on add custom token, and enter its address: 0xc465C0a16228Ef6fE1bF29C04Fdb04bb797fd537
Staking the LP tokens on StakeDao
Back to StakeDao website and there on governance tab :
You get to “stake strategies LP tokens” , the first pool will be used:
afterwards, max your LP token and click on Stake UNI-V2:
Unstake you LP tokens
You can at anytime unstake via the same menu your LP tokens with the rewards in SDT.
Then you can for example remove your LP from uniswap, remember the 0,3% fees you get:) well this is when you get it automatically. When you remove your LP you will get back ETH and SDT, but it will be “slightly” different than the amounts you addedin the first time+Fees. You need to take a look on IL (impermanent loss), and to be honest if you are here, dont check it :), anyway, just kidding, here is a good read.
APY: Annual percentage yield, in our case, it depends on the pool reward in SDT and SDT price. The more people get into the pool the more APY is less :(… kind of :)
You can see your rewards in earned section.
Once you are in there, here is your only job :)
Thanks for reading, and good luck :)