InicioPrensa

How to do farming with TUT?

How to do farming with TUT?

In the previous post, I explained how to buy TUT for dummies. This new post is focused on holders who already have tokens and want to do TUT farming to support the protocol and get more rewards for it. So let's get down to business.

1. Ok but... how to do farming with TUT?

Farming means providing liquidity to a token or protocol to make it more liquid. In the traditional or centralized world, the fact that a tradeable asset is liquid depends on the exchange where it is issued, which is in charge of providing liquidity. For example: if I have Microsoft shares in my broker, the shares are liquid because there is an order book and a market maker market in charge of it.

However, in a decentralized market where we have AMMs (Automated Market Makers), we replace the liquidity deposited through an order book with liquidity provided by the token holders themselves. In the case of Tutellus, the protocol strongly incentivizes liquidity providers during the first 36 months with thousands of tokens every month, as we state in the Whitepaper (apt. Yield Farming).

2. Why is the liquidity token made with Bitcoin?

A "farmer" brings liquidity in the form of a liquidity token or LP token, in our case it is TUT + WBTC. Why have we built the pool against Bitcoin? Because we are absolute believers in Bitcoin and, if it goes up, it will push TUT up as well.

Also because as TUT will tend to go up more than BTC in the same unit of time (basically because it starts at lows and Bitcoin is a very consolidated asset), when the farmer decides to unwind his position he will exit with more BTC than he had when entering the liquidity pool, so he will be doubly satisfied if he also believes as we do in Bitcoin. 

Right now farming is giving an annual return of 150-200%, which will increase in the coming weeks due to an innovative algorithm that we have implemented that accelerates the pace of rewards per block - thus encouraging the staking of LP tokens in the long term and discouraging speculators - and so far we have not seen in any other protocol ... but this gives for another post.

APR farming token TUT

All in all, the TUT-WBTC pool is available on Sushiswap and has already accumulated liquidity of $1.5MM during the first 2 weeks.

Liquidity pool TUT-WBTC

3.Sending BTC to the Polygon network

Come on, we want to be "farmers" and bring liquidity to the protocol, because we believe in the project and because we want to earn those interesting rewards. The first step is to send WBTC to the Polygon network; since the Bitcoin is natively in the bitcoin network itself we have to "wrap it" or transform it into a synthetic asset. Don't worry with this buzzword, WBTC is available everywhere, it is one of the most liquid tokens on the planet. Let's see how to get it.

  • If we have Bitcoin in an exchange like Binance, the easiest way is to send it to our Metamask through the Polygon network. We will receive it in seconds. To add it, import this address in your Metamask: 0x1bfd67037b42cf73acf2047067bd4f2c47d9bfd6.

  • If we have crypto of any kind in Polygon, we can swap it in Sushiswap to WBTC from here.

  • If we have crypto on another network, we can send it through a bridge like this one to Polygon and swap it back in Sushi to WBTC.

  • If we only have Bitcoin and in a ledger, we can use a bridge like this (thanks to the tutellian Pedro Ors ;-))

As you can see, one way or another we bring WBTC to the Polygon network and, by contributing the same value in TUT as in WBTC, we can already add liquidity to the pool.

4.Providing liquidity to the pool in Sushiswap

From the Tutellus dAPP itself, we access Farming and after authorizing the contract, click on 

How to farm TUT tokens

Now the dAPP sends us to the pool in Sushi, and the only thing we will have to do is add the amount of TUT and WBTC we want to put to farm:

Farming de TUT en Sushiswap

When we enable the contract 2 times so that it can interact with our 2 tokens and confirm the SUPPLY to the pool, Sushi will return us the liquidity token or LP token (you will see it in Metamask as SLP or 'Sushi Liquidity Provider token') that represents our participation in the pool and will be the one we put to farm in Tutellus.

Don't worry if the amount is very, very small: that's why in Tutellus we talk about mLP tokens. Even if the number of SLP is very small, the value is what you have contributed (x$ in BTC + x$ in TUT).

5. Farming the LP token in Tutellus

We are almost done! Once we authorize the Farming contract to manage our tokens we will click on "FARMEAR" and we will contribute the maximum amount of LP tokens that we have in the balance:

How to deposit your LP TUT tokens

We confirm the transaction and... Done!

6. I am already farming, now what?

Remember that the protocol distributes the rewards per block (every 15sec approx), so I recommend that every day you CLAIM your rewards and repeat the process of adding liquidity to the pool with the WBTC you have available in your Metamask. Although it may have seemed difficult or even epic, when you do it 2-3 days you will see that it is pure routine. This way you will maximize your profitability (by working compound interest) and help the protocol become more liquid.

Let's keep going!

Tutellus Logo

Descubre más artículos en el Criptoblog sobre...