Demeter Guide: Deposit into Genesis Farms

5 min readNov 18, 2022

This article will walk you through the process of yield farming with Demeter Protocol. Demeter gave DAOs the power to seamlessly launch an incentivized yield farm, improving the ecosystems decentralized exchange liquidity.

This is helpful for DAOs, but also presents a lucrative opportunity for token investors within their community. Investors get to provide liquidity to Demeter pools, which provides an extremely needed service to DAOs, in exchange for rewards.

Without investors providing decentralized exchange liquidity, the DAO would be forced to redirect users to centralized exchanges.

Below are a few important keywords that will help you understand this guide to Demeter:

Farms: Incentivized Uniswap pools. These are opportunities for investors to deposit tokens and earn rewards. These farms are funded by DAO tokens and SPA.
Yield Farming: Provide tokens (liquidity) that DAOs need on Demeter, get rewards paid by these DAOs.
Liquidity Provider: An investor who provides/offers their tokens to Uniswap (other DEXs coming soon) in return for payment.
Liquidity Provider token: A token that represents your deposited tokens, or position, in the farm. The value of this token may change as the price of the underlying liquidity tokens change.
Impermanent Loss: The cost of providing liquidity to the pool. As the price of tokens changes in the pool, the balance of each token changes and this will have an affect on the balance of the entire liquidity position. More.
USDs: 100% backed stablecoin that pays yield to anyone holding it in a wallet

Step 1: Pick A Farm

Under the Explore Tab, you’ll see active and upcoming farms.Each farm has rewards allocated to the pool, current deposits in the pool (TVL) and the current APR featured.

We will use the GMX / USDs farm for this example. A user depositing into this pool likely assumes that GMX and SPA will go up in price, so they wish to be paid in these tokens. They will hold in expectation of value accrual.

Step 2: Acquire Relevant Assets

Assuming you have some ETH in your wallet, let’s follow the steps below to swap our ETH to GMX and USDs:

If you’re using Metamask, open your wallet by tapping on the Metamask icon in your browser plugin.

Import tokens (GMX and USDs) to your Arbitrum wallet
Click ‘Import tokens’ at the bottom of the Assets tab.

Copy & Paste the token, you can select from the following token contracts individually in the ‘Token Contract Address’ field:

GMX: 0xfc5a1a6eb076a2c7ad06ed22c90d7e710e35ad0a
PLS: 0x51318b7d00db7acc4026c88c3952b66278b6a67f
L2DAO: 0x2cab3abfc1670d1a452df502e216a66883cdf079
fxUSD: 0x8616e8ea83f048ab9a5ec513c9412dd2993bce3f
SDL: 0x75c9bc761d88f70156daf83aa010e84680baf131
VELA: Coming Soon

USDs: 0xd74f5255d557944cf7dd0e45ff521520002d5748

Token’s ticker will populate in the ‘token symbol’ field and the ‘Add Custom Token’ button will be highlighted. Tap on ‘Add Custom Token’.

Now you should be able to see both assets in your wallet.

How much of each asset to buy

Click ‘Add Position’ on the top right of your screen. A prompt will appear where you calculate the amount of assets you need.

We will deposit 100 GMX into the pool. Due to GMX price, the calculation shows the pool requires $8,589.83 USDs to deposit with 100 GMX.

We already know how much GMX and USDs to get, so we can go buy the GMX and USDs! We head to uniswap.org and connect our Arbitrum wallet.

Acquire GMX: First we Swap ETH for our desired 100 GMX

Acquire USDs: See all options on the ‘Buy Tokens’ button on demeter.sperax.io. If you are currently holding ETH, Swap ETH for 10,000 USDs, we only need around 8.5k but why not be safe.

Investors can also MINT USDs without any fees at app.sperax.io

Step3: Deposit GMX and USDs

With a fresh 220 GMX and 10,000 USDs in the wallet, click ‘Add Position’ again.

Select the desired 100 GMX, the Demeter dapp will autofill the USDs portion.

Click ‘Add Liquidity’

Three transactions are required to successfully deposit:

Approve GMX, approve USDs, add liquidity, each requires action in your wallet.

Once the 3 transactions are complete, you’ll be presented with a success message!

Step 4: Stake Liquidity Provider Tokens

Once the investor has deposited the tokens, they instantly begin to earn trading fees from the pool. But they won’t recieve the farm rewards until they stake the LP token into the farm.

Click ‘Stake’

You will be presented with a prompt displaying the current value of your LP position and the current APR. Both of these are expected to change significantly during the duration of the lock.

Click ‘Stake LP tokens’.

Approved transaction in your wallet.

We are now earning GMX and SPA rewards which are streamed live! Claim as often as you’d wish.

Disclaimer

This blog should not be taken as a recommendation to execute the above strategy. This blog is only an educational tool, teaching the reader about the mechanics of interacting with the Demeter tools. The decision to execute a yield farming strategy can only be made only by the owner of the capital. As a safe rule of thumb, never invest more than you are willing to lose and always continue to do your own research.

About Sperax

Sperax USD is a stablecoin and yield automator on Arbitrum. Hold $USDs and earn Auto-Yield. Stake $SPA to govern the collateral investment strategy.
Read more at sperax.io and join the Sperax community!
Twitter | Discord | Telegram| Twitter Asia | Medium