How to Earn on Augmented Finance

An overview of basic and yield-maximizing strategies on Augmented Finance

Firstly, why would anyone borrow or supply their tokens on Augmented Finance?

Earn interest on your crypto

Supply your assets to Augmented Finance in order to earn rewards denominated in the underlying assets (“Supply Base APY”). This reward is variable depending on the utilization ratio in the protocol pool. It’s a great way to earn on assets you hold.

Moreover, in addition to Supply Base APY in the underlying assets, you get additional rewards in AGF tokens (“Supply Reward APY”) which make your APY skyrocket.

Take a loan in any asset without selling your crypto

Need an asset and don’t want to sell your crypto? Use your assets as collateral in order to borrow something else. For example, borrowing USDT whilst depositing your ETH, giving you quick access to fiat whilst still reaping the benefit of an upward price trend on your ETH. Your assets can be at risk if the price depreciates, so you have to be careful not to overextend yourself.

Important: the interest on the loan that you’re paying (“Borrow Base APR”) is less of a burden, because you earn (yes, earn, not pay) a sizable amount of AGF tokens (“Borrow Reward APY”) for borrowing. In many cases, Borrow Reward APY more than offsets the interest that you’re paying on the loan!

Basic Strategies

Long an asset

Think an asset is going to go up in price? Supply it to Augmented Finance to profit!

Let’s use Alex as an example; he’s long on ETH. He supplies 1 ETH to Augmented Finance, using it as collateral to borrow 4,000 USDC. Alex uses Uniswap to swap the 4,000 USDC for 0.8 ETH, which means he now has long exposure to 1.8 ETH, and owes Augmented Finance 4,000 USDC. If ETH price (in USD) increases in value, Alex will be able to repurchase the 4,000 USDT he owes Augmented Finance for less than the 1 ETH he supplied earlier. He can then repay his debt, and keep the excess ETH as profit.

Short an asset

Think an asset is going to go down in price? Borrow it on Augmented Finance to profit!

Let’s use Tina as an example; she is short on BTC. She supplies 70,000 USDC to Augmented Finance and uses it as collateral to borrow 1 WBTC. Tina then swaps her 1 WBTC for 65,000 USDC on Uniswap, giving her 135,000 USDC worth of exposure, whilst owing Augmented Finance 1 WBTC. If the price of BTC in USD decreases in value, Tina is able to repay 1 WBTC she owes for less than 65,000 USDC. She can then repay her debt, and keep the excess USDC as profit.

Lock AGF to boost yields and earn more AGF

Important: Even if you do not supply, stake, or borrow anything, by locking AGF you start receiving AGF rewards. Locking AGF is a no-brainer for any user!

By locking AGF, you get a 4x yield boost for your supply, borrow, stake agTokens, and stake Uniswap v2 AGF-ETH LPs.

  1. Supply, borrow, or stake any assets
  2. Go to Boost and set the auto-lock parameters to reflect your preferred timeframe for locking AGF; the longer your lock and the more tokens you lock, the larger the yield boost and more AGF rewards you get
  3. Earn your AGF rewards
  4. Go to Dashboard and click “Claim & boost”
  5. Repeat step 4 to maximize your yield

Pro tip: By locking AGF, you get AGF rewards on top of your locked AGF and boost your APYs for all types of operations. Locking AGF is the best way to maximize AGF rewards for any user and any type of operation.

Yield farm

Thanks to the high-yielding Reward APYs in the form of AGF tokens for both supply and borrow, you can just supply an asset and borrow another one to receive Reward APYs for both supplying and borrowing. Your Reward APYs for supply and borrow may be significantly higher than Borrow Base APR that you’re paying on the loan.

  1. Supply an asset (USDC, USDT, DAI, ETH, WBTC)
  2. Borrow another asset (USDC, USDT, DAI, ETH, WBTC)
  3. Earn your AGF rewards
  4. “Claim & boost” your AGF in Dashboard to maximize your yield

Pro tip: By locking AGF, you get a 4x yield boost on your supplied and borrowed assets!

Supply & stake

Whether you’re a beginner to DeFi or a professional institutional user, Augmented Finance offers a way for you to earn substantial profits safely while doing something as simple as holding your favorite tokens.

  1. Supply an asset (USDC, USDT, DAI, ETH, WBTC)
  2. Stake interest-bearing tokens that you receive (e.g. agUSDC)
  3. Earn your AGF rewards
  4. “Claim & boost” your rewards in Dashboard to maximize your yield

Pro tip: By locking AGF, you get a 4x yield boost on your supplied and staked assets!

Advanced Strategies

Provide liquidity to Uniswap v2 AGF-ETH Pool and Stake Uni LP

  1. Get AGF tokens: buy them in Uniswap v2 AGF-ETH pool or claim them after supplying, borrowing, or staking assets on Augmented Finance
  2. Go to Uniswap v2 AGF-ETH pool and provide both AGF and ETH to the pool. You get Uni v2 AGF-ETH LP tokens in return
  3. Stake your Uni v2 AGF-ETH LP tokens to Augmented Finance and earn both the fees from Uniswap and AGF rewards for staking
  4. Repeat

Pro tip: By locking AGF, you get a 4x yield boost on your staked Uniswap LP tokens!

Yield farm on aTokens (Aave) and cTokens (Compound)

This strategy combines supplying and borrowing assets to get a high yield. Holders of Aave and Compound interest-bearing tokens (e.g. aDAI, cUSDC, etc) can supply them and use as collateral, borrow an asset (USDC, USDT, DAI, ETH, WBTC), and then supply borrowed assets to Augmented Finance to generate yields.

Here’s how to do this:

  1. Supply aTokens or cTokens to Augmented Finance
  2. Borrow an asset (USDC, USDT, DAI, ETH, WBTC)
  3. Supply the asset that you borrowed
  4. Stake your agTokens to maximize the amount of AGF rewards you get
  5. Earn your AGF rewards
  6. “Claim and lock” your rewards in Dashboard to maximize your yields

Thus, you will earn:

  1. Income from Aave or Compound
  2. Supply Reward APY on supply of aTokens / cTokens
  3. Supply Reward APY on supply of the asset you borrowed
  4. Supply Base APY on supply of the asset you borrowed
  5. Yields for staking your agTokens

This is a lot of earnings!

Pro tip: By locking AGF, you get a 4x yield boost on your supplied, borrowed, and staked assets!

Yield farm with leverage

This strategy is based on repeatedly supplying and borrowing assets to get the highest yield.

  1. Supply your assets to Augmented Finance and capture both the yield in the underlying assets (Supply Base APY) and the high yield in AGF tokens (Supply Reward APY)
  2. Take a loan in any other asset to the maximum allowed loan-to-value factor and supply it back to Augmented Finance
  3. Repeat step 2 as many times as possible (end economically reasonable)

This strategy allows you to significantly increase your AGF rewards thanks to leveraging up. To mitigate price volatility risk you can supply and borrow only stablecoins.

Pro tip: By locking AGF, you get a 4x yield boost on your supplied and borrowed assets!

Augmented is on a mission to build an open, efficient, and globally accessible financial system. https://www.augmented.finance/