DYAD recently added support for apxETH as a collateral asset. In this guide I’ll show you how to use DYAD and of course, how to earn some extra yield with your apxETH.
Please note: This guide is not a recommendation and interacting with DeFi protocols and chains can be risky. Please do your own research and use your best judgment. Best of luck out there!
Overviews
Before we start, let's go over all the details to make sure you're fully prepared.
What is apxETH?
pxETH offers two tokens: pxETH, an ETH-pegged asset for users who want to pursue DeFi yield and apxETH (staked pxETH) for users who want to earn staking yield. pxETH is usually the asset integrated into various DeFi apps however, for leveraged looping it’s best to use a yield bearing asset like apxETH so users can amplify the underlying yield even further.
What is DYAD?
The DYAD protocol allows users to mint their stablecoin interest-free against collateral types like apxETH. The way DYAD sets itself apart from other stablecoins is that the excess value of all collateral in the system is tokenized, users who own the token are able to utilize its value as part of their backing.
Obtaining apxETH
Before getting started, you’ll need some apxETH. You can stake your ETH here. The mint screen will provide you with two options:
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Mint pxETH with ETH
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Mint apxETH with ETH
As shown, select apxETH on the drop down menu. From there, simply input the amount of ETH you’d like to deposit and let the Dinero app guide you through the transaction process.
Earning with DYAD
If you’ve ever borrowed a stablecoin before, DYAD will feel familiar to you. If not, make sure to do some research on the risk associated with borrowing stablecoins and to learn what it takes to manage your position(s).
To get started, navigate to the DYAD dapp:
- First, claim a Note NFT using this link. Or purchase one on a secondary market such as opensea. Warning: they’re not cheap!
NOTE: A Note NFT is not only required if you want to deposit collateral and mint DYAD, but also if you want to farm the protocol's native token or participate in any other opportunity that allows you to earn yield.
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Sign any transactions required
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After minting the NFT you will move over to the “Manage Note” tab
NOTE: DYAD XP is a Note metadata trait that accrues over time each second depending on the amount of KEROSENE you have deposited on that Note. XP aligns and incentivises long-term users by accruing and increasing your yield in the DYAD ecosystem.
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Note owners can deposit collateral, navigating to the 'Deposit & Withdraw' tab and selecting their preferred collateral type (up to 5 different collateral types at one time per Note).
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In case no collateral was previously added, click on one of the empty fields to add one of the supported collateral types to your note. In this care we will be using apxETH.
- After adding a collateral type to your note, you can proceed to deposit collateral. Click Approve to review & confirm the transaction in your wallet.
- After depositing collateral, you can now mint DYAD by navigating to the 'Mint & Burn' tab.
NOTE: You're allowed mint DYAD up to the minimum collateral ratio of 150% (or Loan-to-Value of 0.67).
- Click mint, then review and confirm the transaction in your wallet.
NOTE: Please be advised that a collateral ratio below 150% will make your note eligible for liquidation. A user should always take potential volatility of the backing collateral into account.The system does not check for user error!
- You have now minted DYAD stablecoin.
After borrowing DYAD, the most popular place to earn yield is their USDC/DYAD pool on UniSwap. USDC/DYAD LPs will earn the typical LP yield and additional KEROSENE rewards.
What is KEROSENE?
KEROSENE grants access to the excess capital within the DYAD system, for example if a user has a collateral ratio of 100%. He could deposit KEROSENE onto his note. Therefore topping up their collateral ratio. KEROSENE is only as valuable as the excess amount of capital within the system. If you are looking for a deeper dive here is a good write up by blockmates.
Checking your rewards is easy, after choosing to provide liquidity to USDC/DYAD you can check you rewards by connecting your wallet to merk.angle.money.
If you encounter any issues, open a support ticket in the Discord.