The market is not good, let's take a look at Plasma mining and how to mine it properly

On September 25, the market's attention was drawn to the launch of Plasma's native token XPL, which surged to $1.6 shortly after opening. Besides those who participated in the presale, early depositors also received a large amount of airdrop rewards. Coupled with airdrop activities from major trading platforms, even Binance Alpha's airdrop could yield about $220 in $XPL, making it a bright opportunity for many.

Almost immediately after its launch, Plasma kicked off a large-scale liquidity incentive program lasting 7 days, until October 2, covering mainstream protocols such as Aave, Euler, Fluid, Curve, and Veda. Users can deposit stablecoins into these protocols or hold related tokens to earn XPL rewards.

If you missed the deposits, the presale, and the on-chain arbitrage opportunities, you cannot miss the chance to earn rewards. Rhythm BlockBeats has compiled five mainstream mining pools, some of which have an APR exceeding 35%.

Preparation Before Mining

Before starting mining, asset preparation is required. Some protocols require cross-chain transfer of mainnet USDT to Plasma via Stargate to obtain equivalent USDT0; a small amount of XPL is also needed as transaction gas fees (most EVM chains are compatible).

This time, Plasma's activities are mostly in collaboration with Merkl. We can log into Merkl Dashboard at any time to track reward status. The Merkl platform automatically calculates rewards based on the user's deposit scale and duration, and users only need to manually claim them periodically.

Which Pools Are Good for Mining?

PlasmaUSD Vault

This activity is officially initiated by Plasma, where the PlasmaUSD Vault under the Veda protocol distributes WXPL in the form of token mining. Currently, only the Lending Vault is open, and the Basis Trade Vault will be opened in the future.

The operation is quite simple; just click Deposit to put in USDT0/USDT. By holding shares of this Vault, users can earn WXPL rewards both on the mainnet and Plasma chain, which can be claimed every 8 hours. However, USDT0 borrowed has a 48-hour withdrawal cooldown.

The current annualized yield is approximately 34.36%, with daily rewards reaching up to $1.4 million. It is worth noting that the main prize pool of $1 million will only last for 3 days, ending on September 29, and it is unclear whether the official will continue the incentives afterward.

Aave USDT0

Similar to Plasma's lending Vault, depositing USDT0 into Aave's lending limit also earns WXPL rewards. Currently, $1.7 billion has been deposited in the protocol, with an annualized yield of about 21.33% (the protocol's APY is about 3.19%, and WXPL's APY is 18.15%), with daily rewards amounting to approximately $700,000 worth of XPL.
Compared to Plasma, its advantage is that withdrawals can be made at any time, but USDT0 must be provided without holding any USDT0 or USDe debt, meaning circular lending cannot be used to enhance utilization.

Euler K3 Capital USDT0 Vault

In Plasma's Euler protocol, the USDT0 Vault managed by K3 Capital currently has an annualized yield of about 27%, with daily incentive distribution of approximately $55,000 worth of WXPL.

Users only need to deposit USDT0 on the Plasma mainnet into this Vault to start mining.

Euler Re7 Core USDT0 Vault

Also under the Euler protocol, the Re7 Core USDT0 Vault adopts a non-loss, flexible lending model. Users can participate by depositing USDT0 into this Vault. The current annualized yield is about 30.43%, with daily rewards of approximately $35,000 worth of XPL. Although Euler's pools have relatively low TVL, the yield and reward levels are also considerable, making it suitable for retail investors to diversify their allocations.

Fluid fUSDT0 Vault

The fUSDT0 Vault of the Fluid protocol offers rewards for users depositing USDT0, USDe, and ETH into the lending Vault, as well as rewards for borrowing USDT0 using USDai and USDTO as collateral, meaning you can first collateralize USDai and borrow USDT0 to obtain an annualized yield of about 24%.

Then use USDT0 to provide liquidity to the lending pool, which currently has an annualized yield of about 25%.

It is worth noting that most of the APR for borrowing USDT0 activities provides incentives for Plasma's activities. Currently, the actual borrowing rate is around 3%. If borrowing demand increases, the rate may rise quickly, squeezing your net returns.