Uniswap & Pickle Farming

Here’s how to maximize your yield with Uniswap & Pickle Farming!

Uniswap is currently providing $UNI tokens to people who deposit into one of four liquidity pools — ETH-USDT, ETH-USDC, ETH-DAI and ETH-WBTC

Pickle have launched version 0.69 of its Jar product, that farms and sells UNI tokens on behalf of its users, for the three pools that involve USD stablecoins. Furthermore, Pickle have launched three new Pickle Farms, that additionally allow Jar users to earn the $PICKLE token!

The process is as follows:

  1. Deposit one of the ETH/USD_TOKEN pairs at Uniswap. Uniswap provide you with UNI-LP tokens as “receipt” for your deposit. Although you won’t see these tokens in your wallet, they are available for use at Pickle.
  2. Deposit your UNI-LP tokens in the corresponding Pickle 0.69 Jar. Note that this requires two transactions: approving, and then depositing.
  3. In receipt of your UNI-LP deposit, you will receive pUNI tokens.
  4. At this point, the Pickle Jar will farm and sell $UNI tokens on your behalf. The result is that your pUNI tokens—priced in UNI-LP!—will rise over time, such that when you exit the Jar, you will receive more UNI-LP tokens than you deposited. You will NOT see this increase in the Jar balance, because the Jar balance displays your pUNI balance, which always stays the same.
  5. To further benefit, you can now visit the Farm page, and “stake” your pUNI tokens in the respective Pickle Farm. Again, this requires two transactions: Approval, then Staking.
  6. At this point, you’ll start receiving $PICKLE tokens you can harvest on the Farm page, at any time.
  7. The overall APY that you’re earning is the combined total of the Jar APY and the Farm APY!
  8. You will notice that the APYs of the Jars and Farms are dynamically adjusted to incentive the use of stablecoins that are not on their 1-to-1 peg. This ties back to the overall objective of the Pickle project.
  9. To get out, you simply reverse the procedure at any time: Unstake your pUNI-LP tokens on the Farm page, and then withdraw your UNI-LP tokens from the Jars page. Note that withdrawing UNI-LP tokens from the Jars page incurs a fee of 0.5% of your balance at time of withdrawal. (At current APYs, you’d need to leave your deposit for about three days to break even.)