Step Finance ($STEP) announces new compound functionality and a move away from “test” subdomain.
Exciting news from the Step team announcing a major update with some awesome features. In this post I will show you how to use the compounding feature and share my opinion from first experience.
If you want to get right to it, here are basic instructions:
- Go to Step Finance.
- Sign in with your wallet of choice. Ensure you enable “automatically approve transactions”.
- Find your yield farming position on your dashboard.
- Click on compound to see the compound pop up.
- Follow the instruction to harvest, rebalance, create LP tokens and stake from the comfort of your Step dashboard.
Is it worth the 0.2% fee?
As mentioned on this blog previously, there are massive farming opportunities on Raydium. The APR’s are high and thanks to cheap and fast transactions on Solana, we are able to achieve insane APY’s thanks to compounding.
As an example, if your STEP-USDC position is large enough and it makes sense to compound daily, a 400% APR can turn into a 5240% APY which is obviously a lot more than tradfi could ever offer.
But compounding daily can be time consuming. Until now you would have to go to Raydium, sign in and visit a whole bunch of pages, perform some actions and do rebalance calculations in your head.
I guess while it is still new and exciting, it’s been fun to do it every day and I wasn’t sure I needed Step’s new functionality. Especially since Step will not do the work for free… their fee for doing your work is 0.2%of claimable rewards. Read more about fees here.
However, the feature has been implemented nicely and manages to save you time and give you a much better overview of the compounding transaction. I am very impressed, team Step!
Short answer, Yes.
The Step dashboard is starting to show real value to users and I will likely do all my compounding here from now on.
As a final thought, if this feature could be automated based on settings (e.g. compound as soon as I’ve farmed 10 tokens) it could be a huge win for farmers and Step alike. Farmers could take a step back and use Step to monitor positions and Step could take regular 0.2% fees. It’s great for a startups to show revenue early on and as an investor I must say this is looking promising!