How to get 6.3% APY on your MATIC Tokens using Aave
Intro
If you own MATIC tokens, you can earn 6.3% using the Aave Protocol on the Polygon network. Think of Aave as a decentralized bank where you can earn when you lend and borrow. But you might have one problem, how do you get your Matic tokens onto the Polygon blockchain?!
In this video, I’m going to show you how you can easily, and cheaply move your Matic tokens onto the Polygon blockchain and then deposit it in Aave so that you can earn x per year.
- Why isn’t it on the Polygon blockchain to begin with
- How to move it onto the Polygon blockchain
- How to deposit your assets on Aave so that you can earn
1. Why your tokens aren’t on the Polygon Network
There are two reasons:
- When a project launches, they typically raise funds by selling their tokens. However, they may not have a blockchain built yet so they host their token on another blockchain. In the case of Matic, they first hosted their tokens on the Ethereum blockchain.
- Your crypto exchange doesn’t support the Polygon blockchain yet. It takes exchanges a while to support withdrawals and deposits on a new blockchain as it requires an upgrade to their infrastructure
2. How to move your tokens onto the Polygon Network
The most popular option for moving assets onto the Polygon blockchain is via the Polygon bridge. However, it takes at least 7–8 minutes and can cost you from $4 depending on Ethereum’s gas fees. In a previous, video, I share another bridge that you can use, check it out here.
Now there is even a cheaper and faster way. Binance.com has announced this week that they support withdrawals and deposits of the MATIC token from and to the Polygon blockchain.
Let me show you how to use it. (Check the Youtube vid above for visual instructions)
Go onto Binance.com > Fiat & Spot > search for your MATIC token > Withdraw > Paste your Polygon Address > Ensure that the network says MATIC.
As you can see, it’s only going to take 2 minutes and cost 0.1 MATIC for the transfer.
It only took 1m and 34s.
3. How to deposit your tokens on Aave so that you can earn
Go onto the Aave website, make sure you’re connected to the Polygon network and Connect your wallet.
Click deposit and choose the asset of interest. In this case, it’s MATIC.
DO NOT deposit all of your MATIC tokens as they would be needed to pay for gas fees. But you can always look for a faucet in the event that you do make that mistake. They are not guaranteed to always work so try not to do that.
And there you are. Earning MATIC tokens by the minute is how you can earn passive income in crypto.
Disclaimer: there is no innate insurance for this protocol so please use caution. I use this protocol because they’ve been around for more than a year and they have a transparent team. My hope is that if there were to be any hack of any form, they would cover the costs for their customers. However, this is not guaranteed and I am aware of that. This is purely education and not financial advice.
