How to Yield Farm $FL Tokens from FreeLiquid
This project lets users take out loans against their LP Positions. They're rewarding LP providers with $FL Token
UPDATE:
Freeliquid is getting some traction. The Big Brains Mastermind group members got this info back in January. We’ll be trying to help expose others to similar opportunities in the future. If you’re interested, you need to subscribe to our paid tier now . You’ll be first to see new opportunities, and you can join our private Big Brains Mastermind chat server. Free subs also get access to our general chat.
Always, Do Your Own Research. This is not financial advice of any kind. You’ll probably lose all of your money.
FreeLiquid ($FL) is a project that allows for Liquidity Providers to take out up to 90% stablecoin loans against their LP positions.
“Get funding up to 90% of your liquidity pool size”
Pretty big deal if you’re an LP that would like to access capital or lever up.
They’re providing a liquidity rewards program which is paying out in $FL token if you choose to stake your LP position with them.
The annualized APY for staking the $USDFL-FL pair was ~1,400% at the time of this writing.
We are not doing a full analysis of this project in this tutorial, so if you’d like to know more, please read the project’s site and smart contracts.
WARNING: Before you proceed, you must understand that all of these steps combine cost around $300 in Ethereum gas fees. The gas to collect rewards is also very high. Gas fees will eat up positions with small amounts of capital
WARNING #2: You will need equal amounts of $FL and $USDFL , so don’t blow all your funds on buying $FL in the first step!
READ THROUGH THE ENTIRE POST FIRST
Purchase $FL
You will first need to purchase Freeliquid’s token.
The token can be found on Uniswap here: https://info.uniswap.org/token/0xffed56a180f23fd32bc6a1d8d3c09c283ab594a8 .
Double check that this matches the FL token’s address from their official site and discord.
Select your amount, click swap, and accept the metamask request.
Purchase $USDFL
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NOTE from the freeliquid team:
“A friendly reminder about how our FL Reward program works
The x2 boost to your LP tokens value applies to all FL pairs except the USDFL-FL! If you want to maximize your FL rewards, please add to liquidity of FL pairs with USDT, USDC, USDN or DAI!
”
You can swap USDFL for USDT or other stable coin and this tutorial should still work for you.
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You must also purchase the same amount of USDFL, which will be going into our LP position in the next step.
Buy $USDFL on Uniswap: https://info.uniswap.org/pair/0xec314d972fc771eae56ec5063a5282a554fd54a2
Double check that this matches the USDFL token’s address from their official site and discord.
Select your amount, click swap, and accept the metamask request.
Enter Liquidity Position (LP) for the USDFL-FL pair
With equal amounts of our USDFL and FL tokens, we can now create our LP position.
Note: LP positions will continue to gain fees and rebalancing while staked in Freeliquid.
Start with the LP Pool page here: https://info.uniswap.org/pair/0xf03756e7a2b088a8c5d042c764184e8748dfa10d
Click on the “Add Liquidity” button in the top right of the screen as shown in the screenshot above.
Adding Liquidity:
Input the amount of USDFL or FL you’d like to add to this liquidity pool.
The UI will automatically calculate the matching amount for the other token.
“Approve” FL and approve in metamask
“Approve” USDFL and approve in metamask
Then submit and pay your gas fees and approve in metamask
Approve and Deposit your tokens in Freeliquid app
Once the transaction you made for your LP position has finalized you are now going to be able to stake the LP tokens in the Freeliquid pool.
Go to the app here: https://freeliquid.io/borrow
Connect your wallet.
It may take you to the “Borrow” page.
Click the “Reward” option on the left menu pane and you should see the following dashboard:
On this dashboard, you can see your current LP position in the top right.
The current APY is displayed under “Global Info”.
Assuming you have LP tokens in your wallet, you should now have the option to Approve and Lock your LP tokens in the “Participating pools” area.
The “Approve” button below should be available next to the USDFL_FL pair.
Click approve, and approve the transaction in metamask.
Once that approval is done, you can now Lock.
NOTE: Lock is VERY expensive, gas-wise. Be ready.
Go ahead and Lock, then approve in metamask.
Once you have locked, your rewards will start to be issued in $FL token.
You can retrieve rewards whenever you’d like.
However, the gas to retrieve rewards is very high, so save your retrieval for low gas price time periods or wait until gas is a small % of your transaction value.
Here’s a video outlining the same walkthrough:
FreeLiquid Links:
FL Token Contract: https://etherscan.io/token/0xffed56a180f23fd32bc6a1d8d3c09c283ab594a8
Buy FL on Uniswap https://info.uniswap.org/token/0xffed56a180f23fd32bc6a1d8d3c09c283ab594a8
Buy USDFL on Uniswap: https://info.uniswap.org/pair/0xec314d972fc771eae56ec5063a5282a554fd54a2
USDFL-FL Liquidity Pair : https://info.uniswap.org/pair/0xf03756e7a2b088a8c5d042c764184e8748dfa10d
FreeLiquid Site: https://freeliquid.io