Automated Market Maker “Farms & Staking” inside HepaFinance
The main working policy of HepaFinance is via farms and staking. If it is questioned, where can you find a financial system where you can be a lender, borrower, speculator, investor, or all at the same time? The answer is, in DeFi, or decentralized finance. Not since the dawn of the age of crypto currencies has a financial revolution like DeFi taken the world by storm and provided various opportunities for anyone dabbling in digital assets to earn infinite returns using smart decentralized protocols.
The current financial mechanisms still dwell much on traditional and often obsolete systems where, as simple as opening a bank account or requesting for a loan puts you through taxing KYC (Know-Your-Customer) procedures that may take you days or weeks before getting approval, or disapproval. That leaves the world having as many as 1.7 billion adults unbanked and financially underserved to this day.
What makes DeFi an exciting and adventurous space to explore is that it is still highly unregulated, virtually without restrictions, permissions, and third-party mediations. Barriers to entry are still unknown and anyone from a user to a programmer can apply their entrepreneurial, business, and technical skills to bet, grow, and claim their stakes.
Farming
Farming or yield farming is a consequence of DeFi actions to make participants earn tokens while using the crypto project’s DeFi applications. Each and every time a new project emerges in HepaFinance, it has become imperative that it offers brand new tokens or rewards to be earned by incoming users. And as more and more join in, the demand begins to increase that essentially makes the project and its token drive up in value. In simpler terms, you contribute your crypto to the project via a liquidity pool and in return, you are rewarded with incentives. Since the risk is higher, so is the yield.
As HepaFinance has taken the risk to invest in a basic start-up project with a relatively small market cap, little experience, and low trust rating, the team behind the project tends to be more than happy to highly reward those who believe in their vision-mission-action.
Staking
Staking takes you a notch further from farming by allowing you to participate in the project’s governance, have voting rights, certain influence over the project’s designs and processes, among others. By being a core member of the crypto project, you participate in creating the block chain for the Proof-of-Stake coins (PoS). As the substantial amount of capital you inject into the network project is safe, clear, and specific, investor rewards are moderate and definitely lower than yield farming.
Farming VS Staking
The goal of both is clearly that of profit, giving you an opportunity to invest your funds in start-up crypto projects that have small market caps with projected high-value returns in exchange for providing liquidity. Yield farming can be vague and risky as you contribute to the liquidity pool for lending purposes. Staking may yet give you, aside from profit, a sense of fulfillment for being part of a project’s block chain construction.
Farms and staking can attract more people to DeFi protocols and increase user adoption, despite still being an immature strategy by HepaFinance. It is yet to become an efficient market, meaning there are many opportunities to find a high return rate compared to traditional finance. It is a complex strategy, so while we have offered an overview here, you will need to look at more detailed guides before venturing into the farm and staking world.
Resources:
• Website: http://www.hepa.finance/
• Telegram: https://t.me/hepafinance
• Twitter: https://twitter.com/HepaFinance
• Medium: https://hepafinance.medium.com
Author:
Forum Username: Jacqulynscherer
Profile Link: https://bitcointalk.org/index.php?action=profile;u=2898485
Telegram Username: @geneviewinward
BEP-20 Wallet Address: 0xCedff9e0618a1d45d2c15E1E1D4cFfCcE25a4352