Yield Management on Polygon – Using Tetu

Over the last few months as many of you I’m sure already know, DeFi has been relatively quiet, due to the growing popularity from within the NFT industry, or more so the metaverse. Most Ethereum users were expecting DeFi summer 2.0 which ended up shaping up into an NFT summer instead. Basically, this means that APY’s have been lower than usual, and definitely far lower than they were this time last year. That’s not to say that DeFi has dried up by any means. In fact, it’s actually quite the opposite, many new DeFi projects have been popping up all over the place, so really there are still decent returns up for grabs within DeFi, we just need to look a little harder to find them.

Today I want to talk about a protocol I recently learned about called Tetu. Tetu is basically what’s known as a yield management program. A program where users are able to access simple and easy to use liquidity pools in order to generate a yield for themselves, also known as creating a passive income. The beauty of Tetu is that not only is it a newer project that is still currently offering juicy APY’s from a few of their liquidity pools, but the protocol is also completely available on the Polygon network. Which means that the end user can use this protocol and provide liquidity for a very low cost, much lower than what it currently costs to execute transactions on the Ethereum network.

At the moment there are actually about three or four pools within Tetu that are offering quite high APY’s. However, for today I am going to focus on the USDC-TETU pool. It’s very simple to use as it is virtually no different to yield farming anywhere else. All you have to do is provide liquidity to SushiSwap by depositing the USDC-TETU pair in exchange for the LP token, which you can then take and deposit straight into the USDC-TETU pool and thus start generating a yield on your initial investment. At the time of writing the current APY for the USDC-TETU pool is sitting at a crisp 308.05%. Those kinds of returns are exceptionally good at this point in time. As usual of course, these yields generally don’t last for very long because as demand for the protocol/pool grows, the lower the APY will go.

All in all, Tetu looks like a promising project that seems to be doing its job quite well so far. As I explained above, it is a relatively new project (I think their Twitter page launched in June) and will most likely grow more popular passively overtime which in turn will of course draw down the yields. I guess in quieter times within the DeFi/yield farming industry, it’s all about getting into the new projects early and trying to farm the newer pools early and quickly before other people pile in. But hey, that’s what makes this industry so fun. There’s always something to do, there’s always a yield to be earnt, you just have to do the research and put in the time to find it.

Thanks for reading everyone!

Liam Donald

This newsletter is for educational purposes only and should never be considered as financial or investment advice