Yield Farming with UMA

UMA recently launched their liquidity mining program on the 28th of July 2020, it’ll be live for 6 weeks and each week there will be 25k $UMA given out. (https://medium.com/uma-project/liquidity-mining-on-uma-is-now-live-5f6cb0bd53ee)

Yield Farm Details:
$UMA (https://umaproject.org/)
6 weeks long, 25k $UMA each week
Balancer 50/50 yUSD-SEP20/USDC pool, 0.01% fee
https://pools.balancer.exchange/#/pool/0x58EF3abAB72c6C365D4D0D8a70039752b9f32Bc9
Current APY ~53.1585% (https://yieldfarming.info/uma/yusd/)

Getting yUSD-Sep20
To start you need to get yUSD-SEP20, you can do so by buying or minting:
Buying yUSD-SEP20
Go to https://balancer.exchange/#/swap/0x81ab848898b5ffd3354dbbefb333d5d183eedcb5, you can only purchase it with USDC, unlock and swap your desired amount

Minting yUSD-SEP20
Go to http://tools.umaproject.org/ and connect your wallet by clicking on the top right button

After connecting, click on “Select an EMP” and then “yUSD Synthetic Token Expiring 1 September 2020”


Click on “”Manage Position” and then “Create”

WARNING :
You need to mint at a rate that is above the Global Collateralization Ratio
You need to mint at least 100 yUSD
Your position has to be collateralised above 125% for yUSD
The collateral you need for this is WETH, if you don’t have ETH go to “Wrap/Unwrap ETH”

After getting enough WETH, go back to “”Manage Position”, at current prices you’ll need at least 0.82731 WETH to collateralize 100 tokens. NOTE : USE MORE THAN THIS. THIS IS THE VERY MINIMUM.

After max approve and create, you’ll get you yUSD Tokens.

Adding Liquidity to Balancer
Note : if yUSD-Sep 20 is higher than $1, DO NOT buy it or supply USDC as single asset. This is because this will mean buying the yUSD. At time of expiry, the yUSD will be worth $1 so if you buy higher than $1, you will be at a loss.
Go to https://pools.balancer.exchange/#/pool/0x58EF3abAB72c6C365D4D0D8a70039752b9f32Bc9 and click on add liquidity, set up your pool proxy (if you haven’t)
Click on All Pool Assets (Note : you need USDC)

Unlock your assets and add them as liquidity.
REMINDER AGAIN : DO NOT SUPPLY SINGLE ASSET LIQUIDITY IF YUSD-SEP20 IS HIGHER THAN $1, MINT IT.
After this transaction is done, you will receive Balancer Pool Tokens, which are specific to the pool
You will get $BAL and $UMA as rewards.