How to Earn 600% Annually on WRAP Farming on Tezos

How to Earn 600% Annually on WRAP Farming on Tezos

Disclaimer: This text is not investment advice or instruction for trading. Tezos Ukraine bears no responsibility for your investment decisions. Never invest more than you can afford to lose.

Warren Buffett famously said: “If you don’t find a way to make money while you sleep, you will work until you die.”

In this feature, we’ll talk about using WRAP to earn over 600% annually. All it takes is to buy WRAP and click your mouse every week.

What is WRAP

WRAP is a crosschain bridge to transfer ERC-20 and ERC-721 tokens between Ethereum and Tezos protocols. For example, here’s how it works with the LINK transfer:

  • the user sends LINK from their Ethereum wallet to the WRAP smart contract;
  • WRAP blocks a token on the Ethereum blockchain and issues wLINK, a wrapped version of LINK on the Tezos blockchain;
  • the user gets wLINK on their Tezos wallet;
  • They can return wLINK to the WRAP smart contract and unlock the original LINK.

WRAP supports the transfer of the following tokens: AAVE, BUSD, LEO, CEL, LINK, COMP, CRO, DAI, FTT, HUSD, HT, MKR, MATIC, OKB, PAX, SUSHI, USDT, USDC, UNI, WBTC, WETH.

Users govern the development of the protocol using the eponymous token, WRAP. At the time of writing, its price is $0.27.

Every week the protocol creates new WRAPs and distributes them among the developers, users, and quorum members. The tokens also go to liquidity providers who pooled their wrapped assets at Quipuswap.

Using those strategies requires WRAP tokens. One can buy them at Quipuswap or get them from wrapping assets using the WRAP protocol.

WRAP Farming Strategies

The developer of WRAP Hugo Renaudin of Bender Labs shared those strategies with the public.

Simple Strategy: WRAP Liquidity Mining

Adding liquidity to the WRAP/XTZ pool

Adding liquidity to the WRAP/XTZ pool

  1. Get WRAP and XTZ.
  2. Add them to the WRAP/XTZ pool at Quipuswap, get LP tokens.
  3. Deposit the LP tokens in the liquidity mining at WRAP’s website.
  4. Get your rewards once every week.

Choosing LP-based liquidity mining pools on WRAP

Choosing LP-based liquidity mining pools on WRAP

The strategy can bring up to 196% annually in WRAP + Quipuswap fees.

You can increase the profitability by reinvesting the profit on a weekly basis:

  1. Get your rewards in WRAP and LP-WRAP-XTZ.
  2. Add them to liquidity pools at WRAP and Quipuswap.

This strategy can bring you up to 600% annually. The profitability fully depends on the prices of XTZ and WRAP.

Complex Strategy: WRAP Farming

Week One

  1. Deposit WRAP in the five most profitable farms on WRAP’s website.
  2. In a week, collect the reward in the form of wrapped tokens and WRAP.

The list of farms to earn wrapped tokens on WRAP

The list of farms to earn wrapped tokens on WRAP

Week Two

  1. Exchange the reward for XTZ.
  2. Withdraw some WRAP from the farms.
  3. Deposit WRAP and XTZ in the liquidity pool at Quipuswap, get your LP tokens.
  4. Deposit the LP tokens in the liquidity mining at WRAP’s website.
  5. In a week, get the reward: wrapped tokens, WRAP and Quipuswap fees.

Week Three

  1. Repeat the Week’s Two actions.

This is the happy middle ground between farming and liquidity mining. You get a part of your profit in the form of wrapped tokens whose price can grow regardless of tez. The annual profit can go up to 150% a year.

Slow Strategy: Profiting From Fees

Week One

  1. Deposit WRAP in 5 to 10 most profitable farms on WRAP’s website.
  2. In a week, harvest the rewards from all rewards.

Get rewards from all WRAP farms in one click

Get rewards from all WRAP farms in one click

Week Two

  1. Exchange half of your rewards for XTZ.
  2. Deposit WRAP and XTZ to Quipuswap’s liquidity pool, get LP tokens.
  3. Deposit the LP tokens in the liquidity mining at WRAP’s website.
  4. Exchange the other half of your reward for WRAP.
  5. In a week’s time, get your rewards from farms, liquidity mining, and Quipuswap.

Week Three

  1. Exchange half of the reward for XTZ, add the liquidity to Quipuswap’s pool.
  2. Exchange the remainder for WRAP and deposit it in farms.
  3. Repeat the Week’s Two actions.

This strategy diversifies the risks and offers around 100% a year. The main revenue source here is farms.

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