Decentralized finance (DeFi) has become the most actively developing direction of the cryptocurrency industry in 2020. Over the past ten months, the volume of crypto assets blocked in the DeFi protocols has grown more than 10 times and now exceeds $11 billion.
DeFi services are gradually becoming an alternative to traditional financial institutions. DeFi platforms offer much more favorable conditions for obtaining loans than traditional banks. At the same time, any owner of cryptocurrencies can take advantage of the advantages of decentralized finance.
Against the background of the continuing growth of the DeFi industry, Russian developers have launched the profitable farming service DeFireX, which allows you to make a profit of up to 40% per annum when working with the Compound puncture.
Profitable farming and how to make money on it
Providing liquidity in DeFi protocols is often much more profitable than a bank deposit or investment methods available to ordinary people. The greatest benefit can be obtained if you follow the strategy of farming (yield farming) – the practice of maximizing rewards for providing liquidity in the DeFi protocols. In many ways, it is farming that has contributed to the explosive growth of the industry in recent months.
The essence of farming: the user receives a reward in the tokens of the DeFi protocol when providing crypto assets for loans, receiving loans, as well as when providing liquidity to traders of decentralized exchanges (DEX). Most large DeFi projects now have their own tokens. For example, this year Compound released a token to manage the COMP protocol. Users who provide crypto assets for loans in the protocol can, in addition to the interest for providing liquidity, receive a part of the COMP tokens distributed every day.
When the distribution of COMP tokens first started, users received additional profits above 100% per annum. But now the additional yield from the distribution of COMP tokens does not exceed 6% per annum. Thus, together with the percentage of the deposit in the USDC stablecoin pegged to the dollar, the user can expect about 9.2% per annum.
However, profitability can be increased with income farming platforms such as DeFireX. This service allows you to make a profit of up to 40% per annum when working with the Compound protocol, and in the future – with other popular DeFi protocols.
How it works
Profitable farming in DeFireX becomes profitable with an investment of $500 or more. The restriction is due to the fact that the commissions of the Ethereum network make smaller investments unprofitable. At the same time, the service optimizes the mechanisms for entering and withdrawing crypto assets, which allows you to save from $10 to $50 per operation.
DeFireX works directly with the Compound protocol and uses smart contract features that are not available in the normal user interface of the service. The user’s initial investment, such as $500, is deposited to the DeFireX platform. Under them, a quick loan (flash loan) is taken in three times the amount of $1,500 on a third-party service. As part of the same transaction, all the money is sent to the Compound smart contract and $2,000 is placed as a deposit in the protocol. Under this pledge, a loan of 1500 DAI is taken, at the expense of which the quick loan taken earlier is extinguished. Thus, the user has a deposit on Compound of $2,000 and a credit of $1,500.
After that, COMP tokens are requested for the entire amount of assets blocked in the smart contract, which are exchanged daily on the exchange for USDT. In total, taking into account the interest on deposits and loans placed, as well as changes in the cost of COMP, the user’s income can be up to 40% per annum. At the same time, the service charges 20% of the profit, there are no commissions for entering and withdrawing money.
DeFireX uses its own capital in the system – more than $400,000, which allows users to participate in the service with minimal investment. The platform guarantees that the user will not lose the invested money. DeFireX captures profit every 1-3 days, and the user can withdraw income daily. The invested money can also be withdrawn at any time.
The DeFireX platform was created by developers who have been working on IT projects since 2005. The team works in the field of blockchain, machine learning, tokenization, develops smart contracts and creates projects in the DeFi industry.
The professionalism of the developers is confirmed by the victories in international competitions and all-Russian hackathons. For example, in the hackathon “Blockchain – new Oil of Russia”, Ak Bars Bank awarded the developers of DeFireX the first place for the project of the CPA network on smart contracts, which was developed in two days. The DeFireX team also supervised the junior blockchain team, which won first place in the VnesHeconoMbank competition with a project for accounting forests on the blockchain using quadrocopters
The DeFireX smart contract was audited by the Garantex cryptocurrency exchange, and its owner Sergey Mendeleev is a strategic partner of the platform. Russian entrepreneur and politician Alexander Lebedev also supports and oversees the DeFireX service. In addition, in the near future, the DeFireX team together with Alexander Lebedev will launch a new project in the DeFi industry, where the service developers will be responsible for the technical part.
DeFireX was registered in Estonia in January 2020 and has licenses for storing, exchanging and operating cryptocurrencies, as well as consulting activities in the field of cryptocurrencies. DeFireX smart contracts are verified.
Earlier, the CEO of DeFireX-Roman Moiseev gave a detailed interview about DeFi and the revenue platform YouTube channel MoneyFest.
Why is it profitable
Most traditional banks offer a maximum rate of about 1% per annum on deposits in US dollars. When investing in the stock market, a well-balanced portfolio can yield higher returns, but the risks are also higher than in the case of a deposit.
Participation in the work of the DeFi industry through the profitable farming strategy on the DeFireX platform gives you the opportunity to receive up to 40% per annum. At the same time, the user only needs to deposit the minimum amount to the platform, and then make a profit daily.Learn more about the project