I am not a trader. I am but a humble farmer, tending to my crops. In essence, this will not be your usual trading advice! Rather I will impart some Alpha knowledge when it comes to traversing the risky rocky terrain of the DeFi world.
I want to have a look at Avalanche and its ecosystem.
We want to make the most of the recent announcements regarding the liquidity mining programs. Notably right now, we will look at the BenQi reward system and the way to play it. BenQi recently announced a liquidity mining program.
BenQi, much like Aave, is a non-custodial liquidity provider for the market. The main features are lending and borrowing currently, however I am sure that there is more to come. By depositing the current available coins, being:
- AVAX (Avalanche)
- USDT.e
- LINK.e (Chainlink)
- WBTC.e (Wrapped Bitcoin)
- WETH.e (Wrapped Ethereum)
- DAI.e
One is able to earn interest on their deposited crypto as seen above. Qi is the platform’s native token. The “.e” at the end of the above coins just indicates that it has been bridged to the Avalanche chain.
The interest for lending is as follows currently (interest is subject to change):
- AVAX – 1.51% (12.35% rewards)
- USDTe – 4.69% (28.63% rewards)
- LINK.e – 2.09% (14.65% rewards)
- WBTC.e – 1.45% (12.87% rewards)
- WETH.e – 1.14% (7.23% rewards)
- DAI.e – 2.50% (11.79% rewards)
While these base interest rates are pretty average, the rewards are where it really shines! Currently, BenQi has a joint liquidity mining program with the Avalanche Foundation to the tune of $3 Million. Therefore when you lend you are earning bonus rewards in Qi + AVAX, with rewards leaning more towards Qi. It should be noted that the interest rates are variable and change on the constant.
Now, that is not the only way to receive the rewards from the liquidity mining program. You are also being paid to borrow on their platform. If you were to borrow some USDT.e from them you would, currently, have an 8.87% interest rate on the amount you need to pay back BUT you are then getting 42.63% of the amount you borrowed back in special rewards, for example. This is an amazing opportunity to safely gather some extra returns on your crypto.
In the next article I will be looking at a few other opportunities on the Avalanche ecosystem. So make sure you join our Public & Private telegram groups to get the latest in alpha information.
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