This tutorial will show you how to mint
yUSD and farm them on a Balancer pool
BAL and also
UMA tokens via the experimental UMA liquidity mining
program. It's a simple two-step process and should take you no longer than a few
minutes (subject to network congestion).
Step 1: Mint yUSD
Minting yUSD tokens is easy with the EMP Tools, UMA's UI for ExpiringMultiParty contracts (EMP) which is what the yUSD token is minted from.
Navigate to http://tools.umaproject.org/ and click the "Connect" button at the top right corner to connect your MetaMask wallet to the dapp.
Then, select the
yUSD contract from the dropdown immediately underneath the
header (above the tabs).
Select the "Manage Position" tab.
Scroll down to the "Actions" dropdown and ensure that "Create" is selected.
At this point, make sure you read the text and confirm that:
- You will be minting at a collateralization ratio above the global collateralization ratio (GCR);
- You will be minting the minimum required number of tokens (100 for
- You will keep your position collateralized above the minimum required
collateralization ratio (CR) or else risk getting liquidated (the required CR
is 125% for
If you fully understand the above, and have decided on an appropriate amount of (1) collateral to supply and (2) tokens to mint, check to make sure you have enough collateral for minting.
In the case of
yUSD, the collateral you need is WETH,
which is just ETH with an ERC20 interface. If you do not have a sufficient
balance of WETH, you can easily convert your ETH to WETH via the “Wrap/Unwrap
You may skip this step if you already have sufficient WETH.
Once you have enough WETH to use as collateral, return to the "Manage Position" tab and scroll down to the form at the bottom of the page:
In the first field, fill in the amount of collateral you want to supply.
In the second field, fill in the number of tokens you want to mint.
If these values are appropriate, you can then click the "Create" button which
will trigger a transaction with MetaMask. Once that is confirmed and the
transaction is mined, you shall have your
Step 2: Farm on Balancer
USDC to the pool is very dangeorus and is not recommended,
because you are essentially buying
yUSD on the open market. You should avoid
yUSD will be worth $1 by the time of expiry and you will lose
money if you are buying
yUSD above $1.
By supplying liquidity to the
yUSD/USDC Balancer pool, you have the
opportunity to earn both
UMA tokens. The
UMA token distribution is
governed by the experimental UMA liquidity mining program.
Head to the
and click on the "Add Liquidity" button. You’ll be asked to Setup Proxy if you
Once the proxy is setup, the "Add Liquidity" button will show you a form for adding liquidity.
At this point, you might want to get some
USDC so you can supply both assets
to the Balancer pool. Alternatively, Balancer also supports supplying only a
single-asset but that mechanism is out of scope for this tutorial.
Under the "All Pool Assets" tab, you should see something like this:
As with any other ERC20 token, you'll have to "unlock" (i.e. grant approval) for
the dapp to transfer tokens on your behalf. Once you have done that, you can
USDC into the Balancer pool in exchange for some Balancer
Pool Tokens (i.e.
BPT) specific to this pool.
This enables you to passively gain
BAL as well as
UMA in accordance to the
experimental UMA liquidity mining program. If you have any questions regarding
this process, please don't hesitate to reach out on