If you don’t know what staking / farming is, the best analogy is that you bought a house (in our case crypto) and are renting it out (staking / farming) so you are getting monthly income from your original asset while you wait for the price to hopefully go up.
I started farming SUSHI in March. Been doing the SUSHI-ETH and DPI-ETH liquidity pools (LP) and then staking the SUSHI I earn. For maximum rewards, I have LP’d almost all my SUSHI and DPI (coin that tracks all bluechip DeFi tokens).
For every $1k you put into the LP and stake, you get 0.09 Sushi per day in rewards. You get 1/3 of the reward instantly and the other 2/3 vest in 6 months. Full list of rewards here.
Anyways after 1.5 months of farming, yesterday the gas fees were low, so I finally harvested my SUSHI. In total, I got almost $7,000 USD worth of SUSHI and still have another 2/3 locked up ($14,000 USD) available in 6 months. I am planning on holding because SUSHI is currently like $11, but if SUSHI price goes back up to the ATH of $22, then my $21k will be worth $42k+.
If you aren’t staking your assets, you are really missing out because you can make real income from your assets! Like the analogy above of the house, you are collecting rent with staking while hopefully the value of your house goes up. A win-win.
I’m my opinion, Sushiswap is the best platform for staking/farming because Sushiswap gives additional rewards as compared to Uniswap. Also Sushi now supports Matic and BSC chains (so transactions now cost pennies compared to normal ETH fees). Finally Sushi also just launched BentoBox lending via Kashi (which is basically AAVE), so you can now also use SUSHI or other cryptos as collateral to lend or borrow directly on the platform. In my opinion, this is a game-changer because now Sushiswap is one-stop shop for exchanging, farming, borrowing, and lending.
Thanks to the SUSHI farming rewards, even with any impermanent loss (which for me is around 0.05% so far), I am still way ahead and slowly earning a yield of about 5% a month while I wait for DPI, SUSHI, and ETH to mature.
The below image is from croco.finance which is what I use to track my DeFi farming. This total doesn’t include the additional 2/3 vested Sushi that I will earn in 6 months.
On top of the farming rewards, I have also gotten almost $5k USD of fees for being an LP.
As long as gas is low, even if you only have a few thousand in crypto, you should be staking!
If you are new to staking or don’t know how, leave comments and I’ll try to answer them.
You basically need to have an equal amount of 2 coins like ETH-SUSHI, you deposit those coins into a Liquidity Pool on Sushiswap or any exchange to earn fees, and then you stake your Liquidity Tokens on Sushi to earn additional SUSHI rewards.
Personally, I use Zapper.fi to see what farming options are available and you can also stake from there too (better interface than Sushi IMO).