Defi Strategies Using FLUX Protocol: Part 3
Staking on TREA
Welcome back to our Defi Strategies using Flux Protocol series! Today we will be using the TREA platform to benefit in passive staking rewards while avoiding impermanent loss. This strategy is considered risky as TREA website is not secure, however with further development from the TREA team, I hope these issues will be resolved. I have been testing the website for a few weeks with little UI issues but please use this at your own risk!
With this strategy, users can accumulate TREA tokens to participate in the protocol games, reinvest in the TREA mining pools, or swap for other tokens on Moonswap. I encourage users to get creative with the possibilities that this strategy offers to really maximize your earnings in the Conflux ecosystem!
To begin, we have already supplied ETH to FLUX to benefit from the 10% APY earnings.
Currently, cDAI has the lowest borrowing rate so we will use this asset to reduce how much we will need to pay back over time. Also, by borrowing a stablecoin, we are reducing our chances of liquidation during market crashes. If you don’t know how to utilize the functions of FLUX please refer to our guides.
Firstly, we will borrow cDAI. For this test, we will borrow $2000 from our supplied ETH. Approve the transaction.
Next, we will head to Moonswap to swap our cDAI for cUSDT. *Please keep in mind the transaction fee for swapping as we will need to calculate this cost in our overall profit/loss at a later time.
*NOTE: If you want to avoid the liquidity provider transaction fees, you can simply borrow cUSDT instead of cDAI on FLUX for a short term strategy
After we have successfully swapped our tokens, head over to the TREA website: http://trea.finance/conflux/
Go to “Mining” and select the “cUSDT” pool. At the time of writing, we will earn around 60% APY in TREA tokens!
Approve TREA to use your tokens and deposit the cUSDT.
Watch the rewards accumulate in real time!
