The exponential growth of blockchain protocols has made it increasingly complex for users to efficiently select the best yield opportunities while reducing their exposure to risks. And it is even harder for inexperienced users who are looking to have exposure to Decentralized Finance (DeFi) protocols. Users don’t know where to start due to the complexity of these systems, and the lack of a single product that can help them make informed decisions without diving into complicated platforms.
Staking is the process of keeping funds in a cryptocurrency wallet (or staking pool to help the underlying proof-of-stake blockchain network (for a particular project) operate more efficiently and securely.
A stake represents a voting right in a particular project that is earned after purchasing a minimum amount of coins. This means the more coins we hold in a staking pool, the more voting rights we obtain. And since holding the coins helps the underlying proof-of-stake network operate more efficiently and securely, a reward is paid out.
Unlike proof-of-work systems whereby a miner is awarded a block reward plus the transaction fees, in a proof-of-stake system the chosen node that helps to protect and run the network is rewarded with only the transaction fees.
One of the most interesting recent developments in cryptocurrency is the emergence of decentralized liquidity pools.
Algorithmic-based smart contract liquidity pools such as Ethereum’s UNISWAP is just an example of projects leading the charge. Decentralized liquidity provisioning is emerging through a mechanism that does not exist in traditional financial markets thru automated smart contracts. This is a totally new vector of provisioning liquidity, which opens up the possibility of broader, more competitive involvement in market-making. Liquidity pools are thus a bellwether of maturation for decentralized cryptocurrency markets.
Projects like Compound, Aave, Synthetix, Curve or Balancer started to use advanced mechanisms like yield farming to attract large amounts of crypto assets onto their platforms. By depositing and “locking” your assets into their platforms’ (instead of just staking or hodling it). These platforms use your tokens actively in their systems and generate higher returns. You not only get back considerable interest rates and additionally, you now also receive native platform tokens. This goes so far that you can earn tokens on 4 different dimensions like in this sBTC example when you provide e.g. Wrapped Bitcoin for Synthetix’ sBTC pool on Curve. Offerings like this currently push the valuation of these projects to more then 8 billion dollars.
Why Invest in Aircube ?
As DeFi continues to grow exponentially and more protocols and platforms continue to launch weekly, complexity across the space will also increase. Even the most sophisticated users will start struggling to keep track of all the different investment opportunities and new systems in this scenario. This is where AIRCUBE comes in.