Umami Finance Staking Guide - A Low-Risk Platform For Passive Income On Arbitrum

During the bear market, DeFi staking for passive income can be a good strategy as a method of increasing capital efficiency and low risk while waiting for the suitable moment for spot trading. The Arbitrum ecosystem is welcoming cash flow with platforms that apply strategies to optimize returns for investors and Umami Finance is a potential project among them.

Before proceeding, you should learn about Umami Finance to be able to optimize profits through the following analysis: What Is Umami Finance? The Unique Real Yield Project On Arbitrum.

The key here will be users depositing $UMAMI into Umami Finance ⇒ Vaults doing staking, farming to collect profits on protocols on Arbitrum ecosystem ⇒ Users receive distributed profits.

How to buy $UMAMI

You need to own an amount of $UMAMI tokens to stake on the platform. The $UMAMI token can be purchased through Uniswap or Sushiswap.

Step 1: Transfer ETH from the exchange (Binance or Bybit) to your crypto wallet through Arbitrum Network.

Switch to Arbitrum network on Holdstation wallet

If you use a Meta Mask wallet, you can add the Arbitrum network by going to Chainlist.org ⇒ Connect Wallet ⇒ Enter Arbitrum in the search bar and select "Add to Metamask" Arbitrum One.

Bước 2: Buy token $UMAMI (Swap from ETH to $UMAMI) on Uniswap or Sushiswap.

Token Contract: 0x1622bF67e6e5747b81866fE0b85178a93C7F86e3

Connect wallet and switch to the Arbitrum Network

Select ETH and $UMAMI. Then, enter the amount you want to swap and proceed to confirm

Bước 3: Staking on Umami Finance. There are 2 options - Marinate or Compound

To better understand the mechanism and choose the strategy that suits your investment taste, you can read the following analysis: What Is Umami Finance? The Unique Real Yield Project On Arbitrum.

If you like ETH rewards, you just need to stake $UMAMI to receive mUMAMI.

Connect wallet and enter the amount you want to swap, proceed to confirm

On the 1st and 2nd of every month, you can withdraw UMAMI and WETH rewards.

If you want to increase the amount of $UMAMI staked, Auto Compounder will be the right choice as the platform automatically converts ETH rewards to $UMAMI ⇒ stake $UMAMI to increase $mUMAMI position.

Choose Compound and enter the amount you want to swap, proceed to confirm

In case investors do not want to have to wait until the right time to unstake, investors can sell cmUMAMI to UMAMI at a lower price (the rate may vary) on the Uniswap pool created by UMAMI Finance.
$cmUMAMI contract: 0x1922C36F3bc762Ca300b4a46bB2102F84B1684aB

If you want to become a liquidity provider of the UMAMI/cmUMAMI pair and receive fees per transaction, you can do it on the Uniswap pool.

Select the UMAMI and cmUMAMI pairs.
In the Set Price Range section, the exchange rate between cmUMAMI/UMAMI (check at "Current Price" - in the picture is currently 0.950579 cmUMAMI/UMAMI) is usually less than 1 so you can adjust MinPrice and MaxPrice in this range - if the rate falls in the area you choose, your position is better.
Enter the quantity you want to supply.
Approve tokens.

Disclaimer:
The information, statements and conjecture contained in this article, including opinions expressed, are based on information sources that Holdstation believes those are reliable. The opinions expressed in this article are personal opinions expressed after careful consideration and based on the best information we have at the writing's time. This article is not and should not be explained as an offer or solicitation to buy/sell any tokens/NFTs.
Holdstation is not responsible for any direct or indirect losses arising from the use of this article content.