Written by: BUBBLE, Rhythm
On September 25, the highly anticipated Plasma native token XPL was launched, surging to $1.6 after opening. In addition to participants, early depositors also received a large amount of airdrop rewards. Coupled with airdrop events from major trading platforms, even Binance Alpha's airdrop could claim about $220 worth of $XPL, making it a windfall for many.
Almost immediately after launch, Plasma kicked off a massive 7-day liquidity incentive program running until October 2, covering major protocols such as Aave, Euler, Fluid, Curve, and Veda. Users can deposit stablecoins into these protocols or hold related tokens to receive XPL rewards.
If you missed out on deposits or on-chain arbitrage, you shouldn't miss this opportunity to earn rewards. Rhythm BlockBeats has compiled five mainstream mining pools, some of which offer APRs exceeding 35%.
Preparation Before Mining
Before mining, you need to prepare your assets. Some protocols require you to use Stargate to bridge mainnet USDT to Plasma, obtaining an equivalent amount of USDT0. You also need a small amount of XPL as gas fees for transactions (EVM-based chains are generally supported).
Most of Plasma's events this time are in cooperation with Merkl. You can log in to Merkl's Dashboard at any time to track your rewards. The Merkl platform automatically calculates rewards based on the size and duration of user deposits, and users only need to claim them manually on a regular basis.
Which Pools Are Good for Mining?
PlasmaUSD Vault
This event is initiated by Plasma itself. Under the Veda protocol, the PlasmaUSD Vault distributes WXPL through token mining. Currently, only the Lending Vault is open, but the Basis Trade Vault will be available in the future.
The operation is quite simple. Just click Deposit to deposit USDT0/USDT and hold shares of this Vault. Whether on the mainnet or Plasma chain, you can receive WXPL rewards, which can be claimed every 8 hours. However, after borrowing, USDT0 has a 48-hour withdrawal cooldown period.
The current annualized yield is about 34.36%, with daily rewards as high as $1.4 million. It is worth noting that the main prize pool of $1 million will only last for 3 days, ending on September 29. It is unclear whether the official team will continue the incentives afterward.
Aave USDT0
Similar to Plasma's lending Vault, depositing USDT0 on Aave also earns WXPL rewards. Currently, $1.7 billion has been deposited in the protocol, with an annualized yield of about 21.33% (the protocol's own APY is about 3.19%, WXPL APY is 18.15%), and daily rewards are about $700,000 worth of XPL.
Compared to Plasma, its advantage is that you can withdraw at any time, but you must provide USDT0 without holding any USDT0 or USDe debt, meaning you cannot use recursive lending to increase utilization.
Euler K3 Capital USDT0 Vault
In Plasma's Euler protocol, the USDT0 Vault managed by K3 Capital currently offers an annualized yield of about 27%, with daily incentives of about $55,000 worth of WXPL.
Users only need to deposit USDT0 on the Plasma mainnet and supply it to this Vault to start mining.
Euler Re7 Core USDT0 Vault
Also under the Euler protocol, the Re7 Core USDT0 Vault adopts a lossless flexible lending model. Users can participate by depositing USDT0 into this Vault. The current annualized yield is about 30.43%, with daily rewards of about $35,000 worth of XPL. Although Euler's pools have relatively low TVL, the yield and reward levels are still considerable, making them suitable for retail investors to diversify their allocations.
Fluid fUSDT0 Vault
The Fluid protocol's fUSDT0 Vault provides rewards for users who deposit USDT0, USDe, or ETH into the lending Vault, as well as rewards for borrowing USDT0 using USDai and USDTO as collateral. This means you can first collateralize USDai and USDT0 to borrow USDT0 and earn an annualized yield of about 24%.
Then, by providing USDT0 to the lending pool for liquidity, the current annualized yield is about 25%.
It is worth noting that most of the APR for borrowing USDT0 is provided by Plasma's events. The actual borrowing rate is currently around 3%. If borrowing demand rises, the rate may quickly increase, squeezing your net returns.
