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How to earn yield with Gro on Layer 2

Earn more for lower fees

Edward Wilson
Jan 6, 2022

We've integrated Gro on our new, Layer 2 wallet so you can easily earn interest without the high transaction fees of Ethereum Layer 1. Here are the key details.

What is Gro?

Gro is a stablecoin yield optimizer - it does the heavy lifting of ‘yield farming’ for you. This means it deploys assets across various Decentralized Finance (DeFi) protocols and earns a return from a combination of exchange fees, interest from lending, and token incentives.

We’ve added Gro Vault to Argent on zkSync - this is their higher risk and higher return product. It gives access to high DeFi yields, but comes with more smart contract and stablecoin risk and if there is a protocol hack, Gro Vault users cover any losses incurred for both Vault and Gro's other product PWRD.

GRO’s PWRD product, which offers safer returns, is only available on Layer 1. If you want to earn yield on your stablecoins using a less-risky option, you can use Yearn Vaults.   

How to earn yield on stablecoins with Argent and Gro Vault

  1. Tap ‘Invest’ 
  2. Tap USDC/DAI/USDT within ‘Earn on tokens you hold
  3. Select ‘Leveraged Yield’
  4. Enter the amount of the asset you would like to invest
  5. Tap ‘Review
  6. Tap ‘Invest now

You’ll then receive GVT (Gro Vault Token) tokens, which can be sold back to DAI at any time. Other options will be available at a later date. 

Using Gro on Layer 2 with Argent

Fees

Gro doesn’t charge a performance fee but there is a 0.5% withdrawal fee.

As we are using pooling to bring liquidity from L1 to L2, you pay a small gas fee to cover your share of the L1 transaction needed to rebalance the pool.

There are also zkSync network fees which will cost no more than a couple of dollars.

Further information

Risks

As always in crypto and DeFi, you should do your own research on the risks. These include smart contracts and the economics of the protocols. GRO’s audits can be found here.

Calculating APY

The percentage return on your stablecoins comes from 3 sources: Lending income, trading fees and protocol revenue. The APY is variable, meaning it can go up or down based on these variables. To learn more about Gro Vaults, read Gro’s explainer.

Seeing your returns in app

You'll the see $ value of your adjust, rather than the number of GVT tokens.

How GRO access works via Argent on zkSync

ZkSync is just getting started and smart contracts are coming with version 2.0 in 2022 - until then, we’ve partnered with leading DeFi providers to bring a selection of popular investment options and utilize atomic swaps on zkSync - a trustless, peer-to-peer way to swap tokens between two parties. 

Disclaimer: This blog post is for informational purposes and is not financial advice. Investing in cryptocurrencies and DeFi involves risk and can result in you losing money. 

Further reading

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