High Ethereum gas fees have become a major barrier to entry for many DeFi users, especially those looking to participate in stablecoin yield farming with smaller capital amounts. Layer 2 scaling solutions offer a compelling alternative, and Polygon (formerly Matic Network) has emerged as a leading platform, enabling users to farm yields with minimal transaction costs.
This guide provides a step-by-step walkthrough for using Polygon to participate in liquidity mining on popular protocols like Curve and Sushiswap.
Two critical points to note before you begin:
- Initial Transfer Cost: Moving assets from the Ethereum network to the Polygon network is an on-chain Ethereum transaction. You will need to pay ETH for gas, which can be expensive during times of network congestion. Factor this one-time cost into your calculations.
- Withdrawal Timing: Transferring assets back from Polygon to Ethereum requires a bridge withdrawal process, which can take several hours or, in rare cases, a few days. It's advisable not to use funds you may need immediate access to.
This tutorial will use the MetaMask wallet for all operations.
How to Add the Polygon Network to MetaMask
The first step is to configure your Web3 wallet to connect to the Polygon mainnet.
- Open your MetaMask wallet and click on the network selection dropdown at the top (it usually says "Ethereum Mainnet").
- Scroll to the bottom and select "Add network".
A new window will open. Enter the following details for the Polygon Mainnet:
- Network Name: Polygon Mainnet
- New RPC URL:
https://polygon-rpc.com/ - Chain ID:
137 - Currency Symbol:
MATIC - Block Explorer URL:
https://polygonscan.com/
- Click "Save". The Polygon network will now be available in your network dropdown list.
Once selected, your wallet interface will update, and MATIC will be displayed as the native token for gas fees.
How to Bridge Assets to the Polygon Network
To interact with dApps on Polygon, you need assets on its network. You can bridge them from Ethereum using the official Polygon Bridge.
- Navigate to the Polygon Wallet Bridge.
- Connect your MetaMask wallet. Ensure it is set to the Ethereum Mainnet.
- The interface shows two sections: "Ethereum" and "Polygon". You will need some ETH in your Ethereum wallet to pay for the bridge transaction gas fees.
- Select the token you wish to bridge (e.g., USDT, USDC, MATIC) from the list under the Ethereum section.
- Enter the amount you want to transfer and click "Transfer".
- A pop-up will explain the process, which involves two transactions: an Approval and a Deposit. Click "Continue".
- MetaMask will prompt you to confirm the first (Approve) transaction. Review the gas fee and confirm.
- After the first transaction is confirmed on Ethereum, click "Continue" again to submit the Deposit transaction. Confirm this in MetaMask.
- The transfer will complete after the required block confirmations. Your bridged tokens will soon appear in your MetaMask wallet when you switch it to the Polygon network.
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A Guide to Popular Yield Farming dApps on Polygon
Many major Ethereum dApps have deployed on Polygon. You can find a comprehensive list on community-run sites like the Awesome Polygon directory.
Yield Farming on Curve Finance
Curve is a leading decentralized exchange optimized for stablecoin trading with low slippage.
- Ensure your MetaMask is connected to the Polygon network.
- Go to Curve on Polygon and connect your wallet.
- You will see a list of available liquidity pools. Select a stablecoin pool like "Aave".
- To deposit, click the "Deposit" button. You can often deposit a single stablecoin (e.g., USDT) into the pool; it will be automatically converted into the pool's LP token.
- After entering your amount, choose "Deposit & stake in gauge" to earn both base rewards and additional incentive tokens.
- Confirm the transactions in MetaMask. The gas fee, paid in MATIC, will be negligible.
- You can view your deposited balance and accrued rewards by navigating to the "Portfolio" or "Dashboard" section on Curve.
To withdraw, navigate to your chosen pool, select "Withdraw", choose your preferred withdrawal method (e.g., withdraw to a single stablecoin), and confirm the transaction.
Providing Liquidity on SushiSwap
SushiSwap is a full-featured decentralized exchange and yield farming platform.
- Connect your MetaMask wallet (set to Polygon) to SushiSwap.
To provide liquidity to a pair (e.g., USDC-USDT), you need both tokens in a 50/50 value ratio.
- If you need to swap one token for another, use the "Swap" feature on SushiSwap first.
- Go to the "Pool" section and click "Add Liquidity".
- Select the two tokens in your pair and input the desired amounts. The interface will show the estimated LP tokens you will receive.
- After approving the tokens and confirming the "Add Liquidity" transaction, you will receive SLP (SushiSwap LP) tokens.
- To farm rewards, you must stake these SLP tokens. Go to the "Farm" section, find your liquidity pair, and click "Stake".
- Approve the SLP token contract and then confirm the staking transaction.
Your rewards will now accumulate. You can harvest them at any time. To exit, unstake your SLP tokens, then go back to the "Pool" section to remove your liquidity and convert your LP tokens back into the underlying assets.
Frequently Asked Questions (FAQ)
What is Polygon (Matic)?
Polygon is a "Layer 2" scaling solution, often called a sidechain, built alongside Ethereum. It offers faster transactions and significantly lower fees by processing transactions on its own network before eventually settling finality on the Ethereum mainnet. This makes it ideal for micro-transactions and DeFi activities like yield farming.
Why are gas fees on Polygon so low?
Polygon uses a Proof-of-Stake (PoS) consensus mechanism to secure its network. Validators stake MATIC tokens to participate in block production. This system is far less computationally intensive than Ethereum's current Proof-of-Work, allowing for high throughput and very low transaction fees, often a fraction of a cent.
Is it safe to bridge my assets to Polygon?
The official Polygon Bridge is a non-custodial and audited protocol. When you bridge assets, they are locked in a smart contract on Ethereum and minted on the Polygon network. The security of your assets relies on the integrity of these contracts and the security of the Polygon network itself, which is considered robust.
Can I use any wallet with Polygon?
While MetaMask is the most common, any Web3 wallet that supports custom RPC networks can be configured for Polygon. This includes wallets like WalletConnect, Coinbase Wallet, and others. The setup process involves adding the same Polygon RPC details outlined in this guide.
What is the difference between "Deposit" and "Stake"?
On many platforms, "Deposit" means adding your tokens to a liquidity pool to receive LP tokens. You may earn a share of trading fees. "Stake" typically means locking those LP tokens in a separate farm to earn additional incentive tokens (e.g., SUSHI, MATIC, or other project tokens). To maximize yields, you usually need to both deposit and then stake.
What risks are involved in yield farming?
Key risks include smart contract vulnerabilities (bugs or hacks in the code), impermanent loss (the risk of the value of your deposited assets changing compared to simply holding them), and project risks (the farm's incentive tokens could drop in value). Always do your own research before providing liquidity.
Conclusion
Migrating your yield farming activities to Polygon is a highly effective strategy for mitigating the impact of Ethereum's high gas fees. The process involves a one-time bridging cost but unlocks a ecosystem of DeFi protocols where transactions cost less than a cent. By following this guide, you can seamlessly transfer assets and start farming on established platforms like Curve and SushiSwap, keeping a significantly larger portion of your earned yields.
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Disclaimer: This article is for educational purposes only. Users must conduct their own research and due diligence and assess all risks before participating in liquidity mining or any DeFi activities.