Guide: Using Lido's stETH & LDO on 1inch
In this guide, we walk you through how to navigate 1inch’s ‘Quadro Farming’ program, letting stETH-LDO LPs earn rewards in 4 unique ways.
On February 2nd, 1inch announced a new LDO-stETH liquidity pool allowing liquidity providers on the site to earn rewards in four different ways:
- LPs contributing liquidity to the pool will earn 1INCH tokens.
- LPs will earn a proportion of pool swap fees.
- Users will earn stETH as an Ethereum staking reward (in line with Lido’s Eth2 staking APR).
- To encourage liquidity, Lido is voting on the allocation of LDO tokens to supplement the reward rate.
The 1inch stETH-LDO program started on February 2nd - 00.01 UTC - and will run for a period of 4 weeks. Throughout this 4 week period, 0.02% of the 1INCH token supply will be distributed to pool LPs (300,000 1INCH tokens). In line with this, Lido will allocate an additional 0.025% of the LDO token supply (250,000 LDO tokens) to the liquidity initiative.
1inch Liquidity Protocol is an initiative intended to develop the liquidity surrounding new tokens. By taking part in this program, the Lido community will benefit from improved token stability and liquidity, much to the benefit of both Lido DAO members and Ethereum stakers.
Summary
- Provide liquidity in the stETH-LDO liquidity pool to earn 1INCH tokens and pool swap trading fees.
- Benefit from Eth2 staking rewards through exposure to stETH.
- Earn additional rewards through an LDO token allocation.
- Retain your exposure to LDO and stETH.
- Receive rewards in real-time.
- Unstake your pooled tokens at the click of a button.
What is 1inch?
1inch is a liquidity and decentralised exchange aggregator which sources liquidity from a number of DEX platforms including Uniswap, Curve, 0x, and many more. 1inch splits single trades across multiple DEXs for users to get the best market rates.
Users wishing to participate in the pool should provide stETH and LDO in a 50/50 split.
How to provide liquidity to 1inch
Users can easily provide pool liquidity on 1inch to improve liquidity and price stability of both LDO and stETH, earning 4 separate rewards in the process.
- Visit 1inch.exchange/#/dao/pools.
- Search for LDO using the filter.
- Select the LDO / stETH ‘Farming’ pool.
- Click ‘Provide Liquidity’.
- Choose the proportion of LDO and stETH you wish to provide. Please note this will automatically be done in a 50/50 split.
- Choose the quantity of LP tokens to mint. This will be based on the quantity of LDO and stETH you provide. Read more about 1inch LP tokens below.
- Once you are satisfied with the numbers, press Unlock and unlock both your LDO and stETH tokens. You will need to confirm both of these events using your Ethereum wallet.
- Once tokens are unlocked, press Provide Liquidity and confirm the transaction using your Ethereum wallet.
How to contribute to 1inch Liquidity Farms
Once the transaction has been completed you will be providing liquidity to the stETH-LDO pool on 1inch.
By doing so you will have earned 1LP-stETH-LDO Tokens, which represent your stake in the liquidity pool. Your 1inch LP tokens can be staked across 1inch Farms for the additional rewards outlined above.
To stake 1inch LP tokens, follow these steps:
- Visit 1inch.exchange/#/dao/farming.
- Navigate to the stETH-LDO farm.
- Once found, click Deposit.
- A pop-up window will show up with your 1LP-stETH-LDO balance and an overview of your staked amount and daily/monthly/yearly earnings.
- Choose the amount of 1LP-stETH-LDO you wish to stake out of your existing balance and press Unlock Token. Confirm the transaction in your Ethereum wallet.
- Once unlocked, you can now deposit your 1inch LP tokens. Do so by clicking Deposit and confirming the transaction using your Ethereum wallet.
How to acquire stETH / LDO
Users interested in contributing to the 1inch ‘Quadro Farming’ program can purchase stETH and LDO beforehand using the 1inch aggregator markets.
To do so, visit 1inch.exchange/#/ and swap your ETH to LDO, stETH or both.
