D-ETF Agricultural Liquidity Pool. First, let’s look at the benefits of… | by Decentralized ETF | July 2023

First, let’s look at the benefits of this approach before moving on with a step-by-step guide.

1. Promote Stability: By blocking LP tokens for 30 days, the system promotes more stability in the liquidity pool. This prevents large liquidity providers from abruptly withdrawing their funds, which can cause dramatic price swings and potentially destabilize the protocol.

2. Encourages long-term participation: The linear blocking period of 60 days offers liquidity providers an incentive to stay for a longer period of time, thus ensuring sustainable liquidity.

3. Protects Smaller Investors: The lockup and vesting mechanism could potentially deter “whale” behavior where large token holders manipulate the market, giving smaller investors fairer and more equal opportunities.

4. Increased Yield: The soft lock feature and linear locking could lead to a shortage of available tokens in the short-term, which could boost yield due to supply/demand dynamics.

Here is a step-by-step guide to participating in such a yield farming program:

Step 1: Acquire the required tokens

You must have an equal value of DETF tokens and USDC in your wallet. You can buy these tokens on any exchange that lists them.

Step 2: Add liquidity to Uniswap

1. Visit Uniswap’s website.
2. Connect your wallet (e.g. MetaMask).
3. Click Pool at the top of the page, then click Add Liquidity.
4. Select DETF and USDC from the drop down lists and enter the amount you wish to deposit. Remember that the value for both tokens must be the same.
5. Click Approve for each token, then click Deploy once both tokens have been approved.

Step 3: Participate in the Yield Farm

1. Visit https://farming.d-etf.com
2. Connect your wallet.
3. There is a section showing the DETF USDC pool that you need to provide liquidity to. Here you can deposit your LP tokens.
4. Click Approve, then click Deposit. Your LP tokens are now temporarily blocked for 30 days.

Step 4: Wait and Harvest

You are now waiting for your LP tokens to vest. After the 30-day soft lock, your rewards and LP tokens will be released linearly over a 60-day period. You can collect your rewards at any time during this period.

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