EDIT: After experimenting on Layer 2, I’m so impressed I have made this article public because there are some points everyone needs to understand.
Polygon (formerly Matic) released an epic article outlaying the Etherem layer 2 liquidity mining rewards with partners, Aave, Quickswap, and Comethswap. “Layer 2” is what scaling the Ethereum blockchain is commonly referred to.
A straightforward example would be:
Deposit ETH and other assets to Polygon via their Layer 2 bridge: https://wallet.matic.network/ (DO NOT DEPOSIT WETH, JUST ETH). This process takes about 10 minutes and cost about $20 in ETH gas
Everyone should have 0.1 MATIC airdropped into their wallet, but it’s possible you’ll need to top up your MATIC for gas fees on layer 2. I had to consolidate my MATIC across two Ethereum wallets to unstick a transaction.
Connect your Web3 wallet (e.g. MetaMask) to Polygon on Aave
Deposit an asset like ETH or WBTC to receive interest fees and MATIC rewards. Here’s the current APYs for several assets:
Borrow one of the liquid assets on Aave against your collateral
Provide liquidity pairs on Comethswap or Quickswap to earn MATIC and protocol tokens (QUICK and MUST)
The Medium post is worth reading to make sure your portfolio is positioned appropriately. Using Ethereum’s Layer 2 brings costs of transactions down significantly, and is orders of magnitudes faster than layer 1. Here’s a good example from DeFi Dad