Isolated Pools: Launch of DeFi Pool
GM fam! We’re excited to announce the launch of our second isolated pool — the DeFi Pool!
Back in March, we launched our first isolated pool, the Veno Pool (previously known as LCRO Pool), which has been well received by our community. For more details on how isolated pools work, check out our gitbook.
The next isolated pool — DeFi pool — will consist of various partner tokens, starting with Ferro Protocol and Veno Finance!
Background on our partners
Ferro is a StableSwap AMM optimized to bring users the best rates to trade stablecoins and pegged assets through lower fees and slippage. $FER is the main protocol token and is used to reward and incentivize Ferro users.
Veno Finance is a liquid staking protocol where you can stake assets and receive the auto-compounding, yield-bearing receipt tokens in return. $VNO is Veno’s native token which can be utilized across the Cronos Ecosystem. VNO has several use cases, including rewards participation and boost farming.
What are the different strategies for the DeFi Pool?
There are 4 possible ways you can be rewarded for using the DeFi Pool.
- Earn passive yield
- Be a yield farmer
- Be a leveraged yield farmer
- Seek arbitrage opportunities across various lending protocols
Let’s dive in!
- Earn passive yield
If you’re a HODLer, the simplest strategy is to supply your assets for yield. You can earn yield on the following tokens in the DeFi Pool listed below:
DeFi Pool Tokens & Parameters
2. Be a yield farmer
You can do more with borrowed assets by providing liquidity on DEXs such as VVS Finance, MMF, Crodex, Cronaswap and Ferro Protocol. For example, borrow from the DeFi Pool and deposit the token in one of VVS’s Crystal Farms. Currently (as of 10 July), the VVS-VNO Pool offers an APR of 34.35%!
For details on how to provide liquidity on VVS, check out the step-by-step guide here page.
3. Be a leveraged yield farmer
For those who want to earn farming yields but don’t want to be exposed to an underlying token, one way around this is to instead borrow from Tectonic to take advantage of yield farming opportunities elsewhere on Cronos.
For example, deposit USDC and borrow VNO from the DeFi Pool. Then, take the borrowed VNO and open a leverage yield farming position on Single Finance, a leverage yield farming protocol. As of 10 July, the VVS-VNO leveraged farm offers an APR of 48.32%, and an APY of 105%!
Unlike most traditional lending platforms, Single’s leveraged yield farming enables users to borrow under-collateralized loans, which allows for higher capital efficiency for yield farmers. Furthermore, users get access to a wide selection of passive investment management solutions at the click of a button! To learn more about how Single Finance works, read their documentation here.
4. Seek arbitrage opportunities across various lending protocols
Alternatively, execute an arbitrage strategy by simply borrowing tokens with low borrowing APYs from the DeFi Pool and supplying them to another protocol with higher APYs. Again, Single Finance is offering attractive lending APYs for tokens such as CRO and VNO. To take advantage of this arbitrage opportunity, simply head over to Tectonic’s DeFi Pool and borrow CRO or VNO against another asset. After which, head over to Single Finance’s Lend page to deposit your borrowed asset there!
What else can you do with your assets on Cronos?
The Cronos ecosystem is expansive with more than 500 dApps spanning across DeFi, NFTs, gaming and identity solutions. This presents multiple opportunities for users to be rewarded!
For more information on what’s available on the chain, check out Cronos Discover, a newly launched portal to showcase the most popular Cronos apps. The mission of Cronos Discover is to help users to explore what they can do on the Cronos blockchain.
If you like this article and want to learn more about what you can do with your borrowed assets from Tectonic, let us know on telegram or discord!
Disclaimer
All information and examples listed in this article are for general educational and informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Tectonic, Veno Finance, Ferro Protocol, VVS Finance or Single Finance to invest, buy, or sell any coins, tokens, or other crypto assets. Neither parties mentioned above makes any representations as to the accuracy, completeness, timeliness, suitability, or validity of any information in this article and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. There are risks involved in using decentralized protocols and in purchasing or staking any crypto assets; it is essential for you to do your own research and due diligence to assess the nature of, and your own appetite for relevant risks independently and consult your advisors before making any decisions in participating in protocols. YOU ARE RESPONSIBLE FOR YOUR OWN RISK.
