Home ยป Transfer funds from xDai to Polygon to earn yield via Aave

Transfer funds from xDai to Polygon to earn yield via Aave

Hi AbNormals! ๐Ÿ‘‹

I’ve got a great tutorial for you guys, I want to show how easy it is to transfer your funds from xDai to Matic/Polygon. All thanks to Connext, xDai and 1Hive that made this possible.

Requirements

Yeah sorry, you need to do some work first ๐Ÿ˜ฌ. Complete these tasks first if you haven’t already. It’ll be worth it, I promise.

  1. Basic Metamask knowledge
  2. XDAI and MATIC for the transaction fees. You can get some free XDAI via their faucet, for MATIC you’ll need to bridge MATIC tokens from ETH Mainnet or ask someone to send you some.
  3. DAI on XDAI Chain (You can use HoneySwap if you hold USDC or any other asset to swap to DAI)
  4. xDai Chain configured on Metamask
  5. Matic/Polygon Chain configured on Metamask

Exchange USDC for DAI

The bridge that we’ll be using only supports DAI for now, more tokens coming soon. In this section we’ll be swapping usdc for dai via the HoneySwap DEX

Connect your Wallet (make sure that you’re on the xDai Chain), chose your asset that you want to swap and the asset you want to swap to. In this case I want to swap 0.999 USDC to 1.00097 XDAI.

Click Swap and Confirm the transaction

Click on your address to see your recent transactions, you should see your trade there.

Transferring DAI from xDai to Polygon

Alright, we’ve got some DAI to bridge from xDAI to Polygon so we’re ready to continue with the tutorial.

Go to the xdai<->polygon bridge

Make sure that your Metamask is set to use xDai Chain

Enter your ETH address in the Receiver Address and click Cross-Chain Transfer

You’ll get this popup to sign the transaction and setup a channel between the chains. Click Sign.

Enter the desired amount, always double check the receiver’s address. Click Swap when you’re ready.

You’ll get another notification to Confirm the transaction, you’ll see a different address (red arrow) and that’s totally fine. The address belongs to the one that’ll bridge your token.

Click Confirm when you’re ready

After you hit confirm in the previous step you should see this. Wait patiently while the transaction is in progress ๐Ÿ˜Š

Success! You can check your Polygon balance via their Block Explorer

Start earning yield with Aave on Polygon

So, let’s get to the juicy stuff. How to earn yield with your DAI that you just transferred ๐Ÿ˜ฌ

What’s Aave?

First things first, what’s Aave and why is it so amazing? Aave is one of the biggest lending and borrowing protocols, sitting at ~6.4b in TVL at the time of writing and it’s constantly growing. We’ll be focusing on the supplying side. Watch the official video that Aave team put out. Enjoy!

Earning Yield

Now it’s time to switch to the Matic/Polygon chain on your Metamask. If you don’t see your DAI under the Assets tab of Metamask then you’ll need to add the Token manually (this is not required if you don’t want to take the extra steps).

Go to the Aave Dashboard, choose AAVE Market with the Polygon Icon, click Connect and go to the Deposit Tab

Here you’ll see your DAI that you just transferred from xDai. Click on the DAI icon so we can deposit it to earn that fat 29% APY

NOTE: The APY fluctuates based on supply and demand

Put your desired amount and click continue

Click Deposit and Confirm the transaction.

Go to the dashboard to monitor your deposits and watch your money grow by itself. Isn’t that amazing?

I hope you enjoyed this long but fun tutorial. Let me know what you think and how I can improve on my writings.

2 thoughts on “Transfer funds from xDai to Polygon to earn yield via Aave”

  1. Pingback: Passive Income in 2021 » AboveNormal

  2. Pingback: Crypto 101 | Where do I begin? » AboveNormal

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