A Guide To Element Finance

Get rewards on your crvSTETH/steCRV LP tokens by providing liquidity for principle and rewards tokens.

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Written by Lido Support
Updated over a week ago

Element Finance has recently launched support for crvSTETH with a 90-day term, allowing users to get rewards on their tokens by minting principle and yield tokens with their crvSTETH. APY is got through the crvSTETH Yearn vault, trading fees for the stETH/ETH Curve pool, as well as any trading fees for crvSTETH principle and yield token pools (if users decide to provide liquidity).

Element Finance allows users to essentially split their tokens into two forms: principle tokens (the initial amount the user stakes) and yield tokens (which represent the variable interest a user gets).

This allows for greater capital efficiency through the use of secondary markets which allow stakers to sell a particular amount of their principle tokens, whilst still retaining their rewards by keeping their yield tokens. Because of this mechanism, principle tokens are only redeemable after a specific amount of time, and hence, only trade at a discount prior to that maturity date through these secondary markets.

Users should acknowledge that there is a 90-day maturity term, meaning that only once 90 days have passed, will users be able to fully redeem their principle tokens at full value.

How to get stETH LP tokens

Stakers require stETH LP tokens to stake into Element Finance. A detailed guide can be found here. All the steps required are the same, but users should not stake their LP tokens into the Curve gauge.

  1. Head over to the Curve stETH pool.

  2. Deposit stETH or ETH into the pool. Users must approve and confirm the transactions.

  3. Users will receive steCRV LP tokens in their wallet.

How to mint principle and yield tokens in Element with crvSTETH

  1. Head over to Element.Fi.

  2. Connect your wallet.

  3. Select 'crvSTETH v2'.

  4. Input the amount of tokens you would like to split. Don't mint all your tokens if you intend to also provide liquidity for the principle and reward tokens, as you will also need to match it (ePyvcrvSTETH-15OCT21 - steCRV).

  5. A Mint menu should appear, select 'Mint'.

  6. Approve and confirm the transactions, you will be asked to sign multiple transactions.

How to provide liquidity for principle and yield tokens to get:

  1. Select 'LP for additional yield'.

  2. Input the amount of tokens you would like to provide liquidity for.

  3. Select 'Add Liquidity'.

  4. Approve and confirm the transactions.

  5. You will now be able to see your liquidity positions in Portfolio.

How to remove liquidity

  1. Head over to your Portfolio.

  2. Select 'Go to Market' on your liquidity position.

  3. Select the respective pool you would like to remove liquidity (principle or yield).

  4. Under 'Pool Actions', select 'Remove Liquidity'.

  5. Approve and confirm the transactions.

Additional Resources

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