dForce is collaborating with Lido Finance to incentivize lending activities around $wstETH on Optimism and Arbitrum, including:
- lend $wstETH and stake the deposit receipt with dForce.
- borrow USX against collateralized $iwstETH.
- borrow USX against collateralized $wstETH/$ETH Curve LP token (tutorial).
Now we are going to walk you through the whole process:
- Head over to dForce (https://app.dforce.network/) and connect your wallet to the Optimism or the Arbitrum network. On the ‘Lend’ page, you will be able to see $wstETH, simply click on ‘Supply’ to continue.
- To kick start, first-time users need to enable the asset on dForce. On the same page, you can see some key parameters for $wstETH, including Total Supply in dollar value, Adequacy Ratio (keep it above 1 to avoid liquidation of your collaterals), Supply APY (real-time lending rate), LTV (the value of your borrowed assets against the value of your collateral asset), etc.
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Enter the amount of $wstETH you’d like to deposit to dForce and click on ‘Supply’ to continue. You will receive $iwstETH as your deposit receipt. Please note you can enable $wstETH as collateral to borrow other assets (i.e. ETH), but you can only receive $LDO token by staking $iwstETH with dForce through Vault. Also, all borrowed assets across dForce Lending and dForce Vaults will be put together to calculate your LTV and Adequacy Ratio.
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Head over to the ‘Vault’ page and click on the $iwstETH vault to expand the menu.
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Enter the amount of $iwstETH you’d like to stake and click on ‘Supply’ to continue.
- You will be able to see the lending rate on the same page and claim your $LDO rewards at any time.
- Users can mint $USX using staked $iwstETH as collateral to earn more $LDO rewards. On the same page, you will be able to see details of your open position. Please note dForce doesn’t charge any loan origination fee but you will have to pay a 3% APR for your borrowed $USX. 7% liquidation fee will be captured by liquidators for defaulted loans, so please make sure to watch your Adequacy Ratio closely and ensure it stays above 1 to avoid liquidation of your collaterals.
Join our communities for any questions related to using dForce.