Katya Malinova PRO
I am an Associate Professor, Mackenzie Investments Chair in Evidence-Based Investment Management at the DeGroote School of Business, McMaster University, Canada.
Dabbling with Crypto:
Part 2. Aave and Uniswap
Katya Malinova
Please visit part 1 first!
These are slightly outdated instructions on how to borrow/lend on Aave and to trade on Uniswap. I outline the main changes for October 2023 below.
- The guide (mostly) uses "Goerli" test network, but we now use "Sepolia."
- I have changed this in some steps, but not everywhere!
- Also, in the past, it was much easier to see that you are on a test network on Uniswap. As of October 2023, it is not explicit.
- However, you can still see that you are on a test network but comparing the max available ETH to send with the balance in your wallet (or simply use a wallet that only has Sepolia ETH!)
Step 4:
borrowing and lending in Aave
- navigate to aave.com
2. launch app
press on either to connect your wallet
Make sure your MetaMask wallet shows "Sepolia test network", not the Ethereum Mainnet
You are connecting your browser wallet
If multiple options, then search for MetaMask
Click the "gearbox" - top right corner on Aave to turn the "testnet mode" on
Click here to check that you are on the Ethereum Goerli Sepolia network
Click on this Faucet to get more assets to supply (it's free but you may need to have Sepolia ETH to get these)
Supply liquidity & provide collateral so that you may borrow.
Fall 2023: you need not supply the ETH, you can supply whatever you just got from the Faucet
Supply liquidity & provide collateral so that you may borrow
Confirm in your wallet
By default, the receipt token is not showing up in your MetaMask.
Then, "ok, close"
Add the receipt token to your wallet so that the MetaMask wallet shows the balance.
The receipt token is now in your MetaMask
What to do if you forgot to "add token"
I illustrate this on USDT that I have just supplied to Aave
Go to "Activity" in your wallet
Click here (this is the last transaction, where I have supplied USDT)
What to do if you forgot to "add token"
You should see this screen instead after the "click"
Visit the "view on the block explorer"
Visit the "view on the block explorer"
You can click on the token contracts to get the addressed for the aUSDT (receipt) and also for USDT if you don't have it. You can then add them to your wallet
Click here for USDT
Text
Click here for aUSDT
Click here for USDT
This is an illustration for aUSDT
Click here to copy the contract address
Next, return to your wallet (next slide)
Open the wallet, go to "Tokens", and scroll to the bottom
Click on "import tokens
Copy-paste the aUSDT address in here
Copy-paste the aUSDT address
Click import
and here is your token!
Now that you have supplied liquidity and it can be used as collateral, you may borrow.
Same steps. Borrow, confirm, add token.
Borrow something. Say, DAI or USDC.
You should see smth like this:
Next. Supply some or all of the DAI that you borrowed to Aave.
You would need to first approve the access to DAI in your wallet.
You would need to first approve the access to DAI in your wallet.
You may need to scroll down for the "sign" to become clickable
Next, supply. Don't forget to add the token so that you can track the totals
Next, let's find this transaction
Click on it
Let's view
This is the report on the last transaction.
If using this in lieu of the quiz, I need the "Transaction Hash" and "block" number
navigate to app.compound.finance and connect your wallet
NB: you may want/have to request more ETH from the faucet and you may want to purchase some other tokens on UniSwap, such as the UNI token
as with UniSwap liquidity supply, you first need to allow the app to use tokens (I am allowing the use of the UNI token) on your behalf
unfortunately, I don't have the UNI token ... but Compound has a faucet to try it out - so click there
which generously gave me 0.35 UNI
click max and supply
confirm
congrats: you are now a supplier of liquidity!
Now on to borrowing:
- one trick: for testnet in Compound, you need to enable your supplied liquidity as collateral
- We can now borrow against our collateral (provided in UNI)
- We will borrow 1 DAI
Step 5:
using crypto on Uniswap
we will trade testnet ETH using uniswap, a decentralized, automated market maker protocol
- navigate to uniswap.org
2. launch app
you need to connect your wallet to use the app
Step 1: click on MetaMask
Step 2: authorize connection
It may show up as "browser wallet"
Again, make sure your wallet shows Goerli Sepolia test network
shows your wallet
shows we're in testnet mode
This is no longer visible
Check the balance here - if you are on a test network, it should match the Sepolia ETH balance in your wallet!
enter an amount to trade (not too much, like 0.001)
click here to select the token we want to buy
e.g., can use UNI (the governance token for Uniswap)
that's the projected amount that you get for 0.01 ETH
click here
click to confirm
NB: sometimes it doesn't directly go to "confirm"; you may have to navigate to your wallet app (which will show a small notification indicator)
(there may be another step)
by default, the new token does not show up in your wallet
\(\to\) click on add UNI to Metamask
The add token may not longer show up on Sepolia (fall 2023). You may use the "add token process" discuss on the Aave set
should now show up in your wallet
Step 5a:
advanced dabbling: liquidity supply in UniSwap
Part 1 of advanced dabbling: we will now put our ETH and DAI to good use and become UniSwap liquidity providers
1. navigate to "pool"
2. establish a new position
First, select a token - say, UNI, unless you have other ones
There are lots of options here. I'll keep it simple:
- select the fee tier
- select the amount of ETH or UNI
- select the "Full Range" for liquidity supply
before we can use the UNI tokens, we need to give the app the permission to access the UNI on your behalf \(\to\) you need to sign this as a transaction with your wallet. May need to scroll to get there.
you are now ready to supply liquidity:
Step 1
Step 2
Step 3: sign with wallet
details on Etherscan
your wallet also tells you what you did
the UniSwap App tells you what you have; click on the field to get:
Dabbling with Crypto Wallets: Part 2
By Katya Malinova
Dabbling with Crypto Wallets: Part 2
A step-by-step guide on how crypto wallets work, how to operate them, and how to use them for DeFi apps. Part 2. The guide is based on using a Test Network and does not use "real" crypto.
