The most popular in the blockchain world is undoubtedly Defi, and in the Defi world, you must have heard the most popular word: it is called “liquidity mining”
0x01 BTC changed by Defi
Before Defi, BTC was a currency suitable for HODL in the eyes of insiders. And you will find that most people can’t hold BTC after one operation because BTC has been rising in the long run.
On the one hand, people do not know as much about BTC as expertise, and the currency price fluctuates so much; on the other hand, BTC is strictly a zero-interest asset, which means that if you hold BTC, you cannot save it like fiat currency. If the bank can bring you interest income, you can only eat the part of the increase that he buys low and sells high.
Some people often joke that the dollar or the pound has depreciated dozens of times in a hundred years, but they don’t know that this is on the premise of holding cash.
Most people’s cash is either stored in the bank to earn interest or buy products such as government bonds. 300 years ago, they only bought government bonds for one pound, and today they have several hundred pounds by compounding interest, which has underperformed gold but outperformed several times. Silver is a “zero-coupon investment product”.
Although BTC has grown rapidly before, in the long run, because it cannot generate interest, in the perspective of traditional financial, it may have insufficient stamina until the emergence of Defi and liquidity mining.
If you have BTC, or WBTC, RenBTC, etc., your BTC is no longer a zero-interest product, it can provide much higher interest rates than traditional finance in addition to its gains.
0x02 Bitcoin holder
In fact, for the vast majority of users, putting Token on a top trading platform like Binance has a higher security factor than putting it in their wallet, although it sounds less “blockchain”.
Therefore, the safest also means that the income is relatively low. You can go to the platform to participate in the BTC/WBTC pair mining without any other Token types involved. Of course, the annualization is currently only more than 4 points. But better than nothing.
XVS can be regarded as the official decentralized lending platform of Binance, running on the Binance Smart Chain BSC.
For lending, the annual rate is 3%, and it can reach 11.75% for borrowing. Note that the annual rate here actually consists of two components, such as 11.75, of which 6.7% is the annual rate of XVS Token rewards given by XVS to users, and the remaining 5% is about 5%. It is the annualized fee or interest of the borrowing itself.
Auto、ACS Vault
Represented by the vault, such as the well-known vault platforms Acryptos and BTC on BSC, the annualization of a single currency can reach about 30%.In other words, when a user deposits BTC on the ACS platform, ACS helps you borrow from XVS, earns XVS’s own handling fee and XVS platform currency rewards, and then ACS sends you ACS’ own platform currency rewards. This annualization is actually It is composed of 10% of XVS + 17–42% of ACS’ own Token.
At this time, your annualization actually mainly depends on the price of XVS and ACS Token, so the daily changes will be relatively large.
In theory, you can even open another platform and issue a platform token, and then users deposit BTC with you, your platform is responsible for depositing ACS, and then reward users with your platform’s rewards on top of the original rewards of ACS. platform currency.
The annualization can be higher, as long as the price of your platform token value is not 0… This is why Defi is often dubbed the “infinite nesting doll” routine.
But it should be noted that, for each additional platform token issue and an additional procedure , your risk will also accumulate an additional layer. This is also why Pickle,Vault was hacked, and a large amount of funds were lost, and even YFI was not spared some time ago. And you rarely hear that Uni or Sushi’s LP (providing a liquidity market maker’s certificate) pool lost funds.
0x03 ETH holder and BTC+ETH holder
- ETH2.0 staking, almost 8% annualized at present.
- The annualized rate of ETH in ACS is almost 33%.
- Safe and stable BTC/ETH pair LP. If you go to Uniswap, it is said that you can get about 15% of the annualized fee income. For example, in the past Sushiswap, because of the Sushi Token reward, the current annualized fee can be 5–10% and 15%-20%. The left and right Sushi Token rewards are annualized.
4.The current highest ETH single currency income is undoubtedly the Tornado , which is said to be close to 200%. But relatively speaking, the operation is extremely complicated, and because of the current high GAS fee, it is only suitable for mining in the way of 10 ETH or 100 ETH deposit and withdrawal. Therefore, it is basically only recommended to large ETH households + senior Defi farmers
0x04 Multi-Token Strategy
If you have a lot of promising mainstream coins and plan to hold them for a long time, such as Uni, FIl, BNB, etc., and you don’t care much about which is more or less, then you can go to Sushi or Cake to find out if there is a match. , earn an additional fee and platform Token reward.
0x05 Stablecoin Strategy
The stablecoin strategy is a mining strategy that many people like, because it hardly involves any risk of falling Token prices, and there is no impermanent loss caused by ordinary LPs.
There are also three main stablecoin strategies:
1. Binance liquidity mining. A few stablecoins make up a trading pair, which can almost reach an annual rate of 8–10%.
2. Defi standard — Curve.The most well-known Curve 3pool is also the core business of Curve. APY mainly depends on the currency price of Crv, but it is relatively stable. The current annual rate is almost 14%, which is higher than that of Binance.
0x06 New projects Mining
The boom of Defi, in fact, in disguise makes players who originally only “buy” and “sell” at a disadvantage. Because it is very likely that the Token you bought was just dug out by others at 0 cost.
Players who are proficient in mining and have capital advantages are often in an “undefeated” situation. They lose slower than you and earn faster than you. Perhaps only hackers can beat them.
