In order to yield farm on Plenty DeFi, there are a number of steps to follow. You will need to first add your Crypto wallet through the Plenty DeFi website. Next, you also need to use your Crypto Wallet to obtain Plenty tokens. The third step is to view farms, and the fourth is to use the Swap function. Step 5 is to add liquidity, then begin staking in step 6. By step 7, you can prepare to claim your reward! Last but not least, by the eighth step, you will need to use the “Pools” option.
Plenty DeFi, a beta website that makes up part of the Tezos blockchain, is an example of yield farming. Yield farming is essentially a process where cryptocurrency holders can earn rewards on their own holdings. The purpose is that an investor deposits units of their cryptocurrency with the intention of earning interest from trading fees. Participating in programs like Plenty DeFi does require an understanding of what liquidity pools, liquidity providers and automated market maker models are, especially as you (as the trader) will effectively be investing your own money into the trading farm.
When you first access the Plenty DeFi website, you will see a list of farms and be asked to add your crypto wallet. These can vary from Galleon to Umami. For the purposes of this guide, a Kukai wallet is being used.
Once you have connected your wallet, it will then be shown at the top-right hand corner of the screen. You need to ensure that there are Tezos cryptocurrency in your wallet.
The next step is to use your crypto wallet to obtain Plenty tokens. This can be done on websites such as quipuswap where you sign into your crypto wallet, select the “swap” option and change the input to XTZ and output the PLENTY, then click swap. This will then change your Tezos tokens into PLENTY tokens.
Once you have connected your crypto wallet and you have plenty of PLENTY, you can now view the farms on Plenty DeFi.
The key figure to look for on this menu is the APR%, ideally the higher the percentage the better. Once you have chosen which farm you’d like to invest in, you need to go to the next step.
This is quite a simple function to use, simply click on the “swap” tab, then select the farm that you’d like to choose (the one in the example being SMAK):
Simply enter the amount of PLENTY you wish to exchange and the swap function will show you how much you’ll get in return:
Once you have selected “confirm swap”, you need to go back to your crypto wallet (in this example, Kukai) to authorise the swap. Once the swap is authorised, you should see a pop-up like this:
Adding liquidity is as simple as swapping your PLENTY for the farm tokens that you need. Simply click on the “swap” tab from step 4 but click on liquidity instead. Then enter the amount (in this case SMAK) that you would like to add:
Click on “add liquidity” and a confirmation pop-up should show:
Click on “confirm supply” and go back to your crypto wallet, which will give you another confirmation request. Once you have authorised the app to do this (you will need to do this on every step as an added safety precaution), you should see the following screen:
Once this has been process, go back to the “farms” tab and select the farm you’re staking into (in this case SMAK LP) and select “stake”:
You can then select the amount of SMAK token that you’d like to stake (below example is based on a rounded amount from the maximum available – this ensures that the transaction will work):
Then select “confirm stake.”
Once again, you will need to go over to your crypto wallet to confirm and authorise the transaction.
*You will need to wait at least five minutes after staking your tokens for this to work*
Click on the Plenty icon on the left-hand side of the website. Once this loads, your amount to “harvest” should show on the homepage:
Click on “harvest all” and go back to your crypto wallet to confirm and authorise the transaction.
The pools option is essentially provided if you don’t want to run the risk of your PLENTY losing value on withdrawal (hence why the minimum amount you make back on this option is currently at 4%). To utilise this, click on the “pools” tab and click “stake”:
Again, round off the amount and select “confirm stake”:
Again, go back to your crypto wallet to confirm and authorise the transaction. By making this transaction, you are placing a stake in PLENTY as well as any farms that you have selected.
As with any kind of crypto investment that you’re making, it is always important to think about where you are investing and to ensure that you only invest what you can afford to lose. Once you have got to grips with yielding on Plenty DeFi, you’ll be an expert crypto investor in no time!
