If you’re wanting to figure out Curve, please read the starter guide at this address. After reading this, you should have an understanding of how Curve works, how it makes money for liquidity providers and its risks which is ideally what you want before providing liquidity.
Curve Finance Y pool has long been one of the most popular pools on Curve Finance due to its strong returns from trading fees supplemented by iEarn which also lends your stable coin in the background to the lending protocol with the best lending rates out of Compound, dYdX and AAVE.
Y pool also receives CRV rewards since its launch in early August. Now you know how the Y pool makes money for liquidity providers and you're ready to start providing liquidity.
If you have more questions, you can scroll down to the bottom of this guide where you can find an FAQ with commonly asked questions about the Y pool.
1. Depositing into the pool
Visit the deposit page (https://www.curve.fi/iearn/deposit). You will need one or multiple stable coins to deposit. The Y pool takes DAI, USDC, USDT and TUSD.
First, it's important to understand that you don't have to deposit all coins, you can deposit one or several of the coins in the pool and it won't affect your returns. Depositing the coin with the smallest share in the pool will result in a small deposit bonus like seen on the screenshot above.
Second, once you deposit one stable coin, it gets split over the four different coins in the pool which means you now have exposure to all of them. The first checkbox (Add all coins in a balanced proportion) allows you to deposit all four coins in the same proportion they currently are in the pool.
The "Deposit wrapped" option allows you to directly deposit Y tokens that have been previously wrapped (on yEarn Finance website). If you are depositing a normal stable coin, you can ignore this option.
If you don't want to add all your stable coins, just click the "Use maximum amount of coins available" checkbox and enter the number of coins you wish to deposit and click "Deposit".
2. Confirming and staking
You will then be asked to approve the Curve Finance contract, follow by a deposit transaction which will wrap your stable coins and deposit them into the pool. This transaction can be expensive so you ideally want to wait for gas to be fairly cheap if this will impact the size of your deposit.
After depositing in the pool, you receive liquidity provider (LP) tokens. They represent your share of ownership in the pool and you will need them to stake for CRV.
Head over to Curve DAO at this address: https://dao.curve.fi/minter/gauges, scroll down to "y Liquidity gauge" and click deposit. This will place your LP tokens into the gauge and you will start earning CRV.
You can claim them from the minter gauge.
Once that's done, you're providing liquidity and staking so all that's left to do is wait for your trading fees to accrue.
Always remember, DeFi is very new, much like Curve is and as per their FAQ:
Please don’t supply your life savings, or assets you can’t afford to lose, to Curve, especially as a liquidity provider
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