How to use 1inch for yield farming
Yield farming is a popular way to earn passive income from your cryptocurrency holdings. 1inch is a decentralized exchange (DEX) that allows users to trade cryptocurrencies and also participate in yield farming. Here’s a step-by-step guide on how to use 1inch for yield farming:
- Connect your wallet to 1inch: In order to participate in yield farming on 1inch, you will need to connect a wallet to your 1inch account. This can be done by going to the “Wallets” page and following the prompts. 1inch supports various wallets, including MetaMask and Ledger.
- Select the token you want to lend: Once your wallet is connected, you can select the token you want to lend by going to the “Farm” page.
- Input the amount of tokens you want to lend: Input the amount of tokens you want to lend in the input field provided.
- Select the liquidity pool: Select the liquidity pool that you want to lend your tokens to. You can check the current APR and the total liquidity on each pool.
- Confirm the transaction: Review the details of the transaction and confirm the transaction.
- Wait for the transaction to be confirmed: Once the transaction is confirmed, the tokens will be lent to the selected liquidity pool.
- Collect your rewards: The rewards for lending your tokens will be credited to your account automatically. You can claim them any time you want.
It’s important to note that yield farming can be risky and it’s important to be aware of the risks before lending your tokens. Also, the APR can be highly volatile and it’s important to always do your own research before lending your tokens.
1inch also offers a feature called “Harvest” which allows you to compound your rewards by automatically re-lending them to the same liquidity pool.
That’s it! You have successfully participated in yield farming on 1inch. Remember that yield farming on any decentralized exchange still carries some risks and it’s important to be aware of them, and to always do your own research before participating.