Summary: provide liquidity on Uniswap and earn fees, get an airdrop, invest in Tinlake, accrue and stake RAD
Step 1: provide liquidity on Uniswap
Last year I provided liquidity on Uniswap for several liquidity pools (about 20K) to mitigate risk and earn fees. For each transaction in the liquidity pools, consisting of ETH and an ERC20-token (e.g. XOR) in equal parts, I earned 0.3% fees which accumulated in the pools and the value increased within a few months.
https://app.uniswap.org/#/pool
Step 2: convert profits and ERC20 (airdrop) to DAI
In September 2020 Uniswap airdropped their UNI-token to users of the DEX and to historical liquidity providers. For trading and for my liquidity pools I received a good amount of UNI which I converted to DAI right after the airdrop. I wanted to sustain the value and use it for further investments. The same I did with the earned fees from the pools. I was very lucky with the airdrop and I highly recommend to do some research which protocols/exchanges might do an airdrop by interacting with them.
https://app.uniswap.org/#/swap
Step 3: invest DAI in Tinlake
The converted DAI from the Uniswap-airdrop plus the remaining 25% of DAI from the pool’s fees I invested in the first revolving pool on Tinlake (min. investment of 10K DAI). In the pool the DAI had to be exchanged into DROP-tokens (the senior token with a fixed interest rate which is safer and more stable).
https://tinlake.centrifuge.io/
Step 4: earn interest in the Tinlake pool and accrue RAD-tokens
In the Tinlake pool I earned a stable interest of 8% which has been added in DROP/DAI on a daily basis to the initial investment. Additionally I accrued Radial Rewards Tokens (RAD) through the Radial Rewards Program. At the time of writing I got 0.25 RAD for each DAI invested for the minimum period (60 days).
https://medium.com/centrifuge/start-earning-radial-rad-rewards-for-tinlake-cbd98fcd8330
Step 5: get RAD tokens for staking
At the same time I requested 1 RAD from the Centrifuge faucet and started with staking in the Polkadot portal to secure the Centrifuge chain. A small amount of RAD to operate with the chain can be obtained here: faucet@centrifuge.foundation
Step 6: claim RAD tokens accrued in Tinlake and get them ready to stake
As soon as the claiming functionality for RAD in Tinlake is live (January, 21st) I am going to claim the RAD-tokens accrued through the Radial Rewards Program, I will stake them and secure the Centrifuge chain.The APY delivers a good return and the stack of tokens is accumulating further.
I’ll continue with providing liquidity on Uniswap, earning interest in the Tinlake app and accumulating of RAD as long as it is profitable and I don’t have to cash out.
In my opinion it is a low to medium risk investment with a stable return (fees from Uniswap and interest from Tinlake) as well as free RAD-tokens from Radial Rewards.
