Before you begin, determine which DFX pool you would like to add liquidity to. It is ideal to provide liquidity in a currency you are comfortable taking FX risk on as there may be applicable while your funds are in the pool.
Generally, providing liquidity in the smallest pool will net you the highest reward. However, you will need to be careful and determine the risk of providing liquidity in that pool if you are only holding USDC. Balancer pools take half the capital and internally swaps the tokens into the other asset. In this event, the price you pay for those tokens may come at a premium. You will then need to make a decision to determine if this premium is worth the additional rewards you receive versus the other pools that may have a smaller market premium.
Once you have all the parameters set, you will need to "Create Proxy". This is a proxy contract used in balancer.
Metamask will pop up and request approval to create the proxy, this is the first of up to 6 metamask transactions you will be executing. This transaction will likely be the most expensive out of all of them.
After the transaction has been confirmed, Balancer will ask you to unlock your stablecoins. If you selected Multi Asset, you will need to unlock both the foreign stablecoin and USDC. If you choose Single Asset, you will only have to unlock one stablecoin. Metamask will pop up again to request approval.
Once all the stablecoins are unlocked, Balancer will now allow you to Add Liquidity. Again, Metamask will ask you to approve this transaction. Once this transaction has been confirmed, you will receive one of 3 BPT tokens depending on which pool you are in.
DFXv0 LP USDC-CADC Balancer
DFXv0 LP USDC-EURS Balancer
DFXv0 LP USDC-XSDG Balancer
Continue reading below to start staking your BPT tokens to earn DFX tokens
Once you confirm these are in your wallet, proceed to DFX's staking portal at: https://v0.dfx.finance/
Scroll down to the bottom of the page and find the pool you are depositing into. Select "Manage" to open up the accordion. To deposit all your BPT tokens, you can click on your balance on the left side of the accordion and it will auto-populate the input box. Once the value is set, click "Stake" and Metamask will ask you to approve the BPT tokens to be used in the DFX contract. Once approved, you will need to stake the BPT tokens into the DFX contract, where Metamask again will ask for your confirmation. Once this transaction is processed, you will start seeing your "My DFX Earned" start increasing slowly. Once this number starts moving up, you are good to go. If you encounter any issues along the way, please visit our Discord server and our community members and admins will be able to assist you.