Depositing into the Y Pool

If you’re wanting to figure out Curve, please read the starter guide at this address. After reading this, you should have an understanding of how Curve works, how it makes money for liquidity providers and its risks which is ideally what you want before providing liquidity.

Curve Finance Y pool has long been one of the most popular pools on Curve Finance due to its strong returns from trading fees supplemented by iEarn which also lends your stable coin in the background to the lending protocol with the best lending rates out of dYdX and AAVE.

Y pool also receives CRV rewards since its launch in early August. Now you know how the Y pool makes money for liquidity providers and you're ready to start providing liquidity.

Depositing into the pool

Visit the deposit page (https://www.curve.fi/iearn/deposit). You will need one or multiple stable coins to deposit. The Y pool takes DAI, USDC, USDT and TUSD.

First, it's important to understand that you don't have to deposit all coins, you can deposit one or several of the coins in the pool and it won't affect your returns. Depositing the coin with the smallest share in the pool will result in a small deposit bonus like seen on the screenshot above.

Second, once you deposit one stable coin, it gets split over the four different coins in the pool which means you now have exposure to all of them. The first checkbox (Add all coins in a balanced proportion) allows you to deposit all four coins in the same proportion they currently are in the pool.

The "Deposit wrapped" option allows you to directly deposit Y tokens that have been previously wrapped (on yEarn Finance website). If you are depositing a normal stable coin, you can ignore this option.

If you don't want to add all your stable coins, just click the "Use maximum amount of coins available" checkbox and enter the number of coins you wish to deposit and click "Deposit and Stake". You will then be prompted to confirm multiple transactions.

Confirming and staking

You will then be asked to approve the Curve Finance contract, follow by a deposit transaction which will wrap your stable coins and deposit them into the pool. This transaction can be expensive so you ideally want to wait for gas to be fairly cheap if this will impact the size of your deposit.

After depositing in the pool, you receive liquidity provider (LP) tokens. They represent your share of ownership in the pool and you will need them to stake for CRV.

After depositing, you will be prompted with a new transaction that will deposit your LP tokens in the DAO liquidity gauge. Confirming the transaction will let you mine CRV.

You can claim them from the minter gauge.

Once that's done, you're providing liquidity and staking so all that's left to do is wait for your trading fees to accrue.

You can click the link below to learn how to boost your CRV rewards.