Get Started with DeFi on Scroll: Bridges and Yield Farms Explained

Scroll is a new blockchain network that uses a technology called zkEVM. This makes transactions faster and cheaper than on some older networks. You can do many things in DeFi, like lending, borrowing, and earning interest, on Scroll. This guide will show you how to move your crypto to Scroll and start earning.

What is Scroll and Why Use It?

Scroll is a Layer 2 scaling solution for Ethereum. This means it helps Ethereum handle more transactions. It uses zero knowledge proofs (zk proofs) to make things secure and efficient. For users, this means lower fees and faster transaction times.

Step 1: Get Crypto for Gas Fees

To do anything on Scroll, you need its native token, ETH (Ether), for gas fees. You will need a small amount of ETH on the Ethereum mainnet first. You can get ETH from many crypto exchanges.

Step 2: Bridge Your ETH to Scroll

You need to move your ETH from the Ethereum mainnet to the Scroll network. This is done using a bridge. Scroll has its own official bridge.

1. Go to the Scroll Bridge website. You can find this by searching for “Scroll Bridge” on a search engine.
2. Connect your crypto wallet, like MetaMask.
3. Select “ETH” as the token you want to bridge.
4. Enter the amount of ETH you want to send to Scroll.
5. Choose “Scroll Sepolia” or “Scroll Mainnet” as your destination network. For real use, choose Mainnet.
6. Approve the transaction in your wallet. You will pay gas fees on the Ethereum mainnet for this.

It might take a few minutes for your ETH to arrive on Scroll. Once it does, you can use it for transactions on the Scroll network.

Step 3: Explore Yield Farming on Scroll

Yield farming is a way to earn rewards by providing liquidity to decentralized exchanges (DEXs) or lending protocols. Scroll has several DEXs where you can farm.

Finding Yield Farming Opportunities

Popular places to find yield farming opportunities on Scroll include:

• Syncswap
• Bungee Exchange
• Others may appear as the network grows.

How to Yield Farm

The general steps for yield farming are similar across platforms:

1. Connect Your Wallet: Go to the DEX website and connect your wallet, making sure it is set to the Scroll network.
2. Swap Tokens: You might need two different tokens to provide liquidity. For example, you might need ETH and another token like USDC. You can swap for these tokens on the same DEX.
3. Provide Liquidity: Find the “Pools” or “Liquidity” section. Choose the pair of tokens you want to deposit. You will deposit an equal value of both tokens.
4. Earn Rewards: Once you provide liquidity, you will receive LP (Liquidity Provider) tokens. You can then stake these LP tokens in a “Farm” section to earn additional rewards, often in the form of the DEX’s native token.

Be aware that yield farming comes with risks, including impermanent loss and smart contract bugs. Always do your own research before investing.

Important Considerations

Using bridges is essential for moving assets between networks. Be sure to use reputable bridges. For other Layer 2 networks, you can find guides like this one on Optimism.

Always ensure your wallet is secure. Consider using a multi-sig wallet for added security if you plan to manage significant assets.

The Scroll ecosystem is growing. Keep an eye on new protocols and opportunities that emerge.