This blog post is for all the yield-seeking pxETH holders out there. Throughout this guide, I’ll be providing everything you need to know to start earning yield with your pxETH on Curve, Balancer, and Bunni.
Please note: This guide is not a recommendation and interacting with DeFi protocols can be risky. Please do your own research and use your best judgment. Best of luck out there!
Overviews
Before we dive in, let’s walk through everything you need to know before aping.
What is pxETH?
pxETH is one of two tokens associated with Pirex ETH – the liquid staking solution for ETH that will power the Dinero protocol. Users receive pxETH when they deposit ETH into Pirex ETH. It’s liquid, fungible, and pegged 1:1 to ETH. Functionally, you can think of it as wrapped ETH (WETH).
It’s worth noting that the ETH underlying pxETH is staked in Dinero validators, but pxETH does not earn ETH staking yield. Check out this guide for more information on Pirex ETH’s two-token design and how to earn staking yield. pxETH is for adventurers, not humble stakers.
What are Curve, Balancer, Bunni?
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Curve is one of DeFi’s largest decentralized exchanges. It allows users to swap from one asset to another (obviously), but it also allows users to provide liquidity to facilitate those swaps.
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Balancer is a decentralized exchange that allows users to create pools with up to eight different tokens in customizable ratios. This flexibility enables dynamic asset allocation within pools, which enables continuous liquidity provision and efficient trading experiences.
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Bunni is a dynamic liquidity engine specifically designed to incentivize Uniswap v3 liquidity. Comprising two integral components, Bunni features a protocol that encapsulates Uniswap liquidity positions into fungible ERC-20 tokens and an innovative tokenomics system tailored for incentivizing Bunni liquidity.
What are Gauges?
Everyone knows what decentralized exchanges are, but not everyone is familiar with the concept of “gauges.” Gauges are used across DeFi to improve liquidity and encourage users to add assets to certain pools. Gauges usually determine the distribution of rewards to liquidity providers. Additionally, governance token holders have the ability to vote on the amount of rewards allocated to each gauge.
In the context of the decentralized exchanges listed above, gauges are used to distribute CRV, BAL, and LIT incentives respectively. Each of these protocols leverage gauges to incentivize users who provide liquidity, thus allowing users – like yourself – to earn those sweet, sweet yields.
Obtaining pxETH
Before getting started, you’ll need to get your hands on some pxETH. You can mint some with ETH you already own (guide here) or you can buy it through decentralized exchanges like the ones highlighted above.
If you’re looking to mint pxETH, navigate to the mint page here. The mint screen will provide you with two options:
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Mint pxETH with ETH
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Deposit to apxETH vault with ETH
If you want to earn ETH staking yields, stop reading this guide and deposit to the apxETH staking vault. But, if you’re looking to earn gauge rewards like a real farmer, then move forward with minting pxETH.
Remember: pxETH does not earn staking yields. Instead, you’ll earn yield on pxETH from opportunities like the ones outlined in this guide.
Earning on Curve
To get started head here to the Curve home page.
Once you’re on the main swap page, you’ll have access to all of Curve’s products, statistics, etc. Head over to the “pools” page, then click “hide very small pools” underneath the search bar to uncover various pxETH pools. In the search bar, type “pxETH” and you’ll see the list populate with the pools available to you:
From here, we’re off to the races. Start by connecting your wallet if you haven’t already, then select the pxETH / stETH pool. We’re using this pool because it’s the one with the most incentives… trust me.
Note: Before depositing you’ll need some stETH. You can buy it using this Curve pool or mint it through Lido – we’ll let you decide.
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After selecting this pool, enter the amount of pxETH and stETH you’re wanting to deposit.
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Make sure that you’re seeding the pool with the same(ish) amount of each token so that it’s a 50/50 split in value.
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Then deposit and sign any transactions required.
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IMPORTANT: After depositing liquidity, you must stake your LP tokens to start earning gauge rewards. To do so, head to the stake tab right next to the deposit tab:
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Click MAX, approve spending, then stake and you’re done!
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You’ll soon start earning CRV rewards from the gauge.
Earning on Balancer
To get started head here to the Balancer home page.
Make sure you’re on the pool tab. Once there, you’ll have access to all of the liquidity pools available on Balancer. Click “filter by token” then type in pxETH.
You’ll see two pools pop up. For farming purposes you’ll want to deposit to the pxETH / frxETH pool. Again, you’ll need frxETH to participate in this pool. So be sure to buy some or mint some.
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The next steps are basically the same as Curve.
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On the right hand side of the pxETH / frxETH pool page, you’ll see the option to add liquidity. Remember, you’ll need to deposit 50% pxETH and 50% frxETH.
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Go through the process they walk you through, deposit liquidity, and you’ll receive your LP tokens.
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IMPORTANT: After depositing liquidity, head to the staking incentives panel and stake your LP tokens to begin earning BAL rewards from the gauge.
Earning on Bunni
To get started head here to the Bunni home page.
To get started, search “pxETH” in the search bar to find the pxETH / WETH pool.
Note: Bunni is not a decentralized exchange. They’ve built a wrapper on top of Uniswap in order to provide token incentives to Uniswap LPs.
- When you click on the pool, you’ll be prompted to connect your wallet and make a deposit:
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Make sure you deposit 50% pxETH and 50% WETH. Don’t worry about Uniswap, Bunni will handle all of that for you.
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If you’re an expert Uniswap LP, you can input a price range for which you’d like to provide liquidity. If you have no idea what that means… just press “full range.”
You’ll be prompted to approve each token, then you’ll be prompted to deposit or deposit and stake. IMPORTANT: To earn the oLIT gauge rewards, you’ll need to click deposit and stake!
Once you do that, you’re set.
What’s next?
As you provide liquidity and earn rewards, make sure you monitor your positions. Over time rewards will become claimable and you’ll want to be around to harvest and sell those rewards for… BTRFLY or something.