9ja Challenge; DeFi 101
You must be shapeless, formless, like water. When you pour water in a cup, it becomes the cup. When you pour water in a bottle, it becomes the bottle. When you pour water in a teapot, it becomes the teapot. Water can drip and it can crash. Become like water my friend. - Bruce Lee
DeFi 101: the "Stream"
Money comes and goes, and very rarely does it seem like it stays within our grasp; finance is not unlike water in this way. But also like water, when understood, it can be more easily manipulated and shifted to suit the needs of its shaper. In this basic article, I'll outline various types of ways whatever you have in your wallets can flow. The streams can ebb or crash in a number of ways to yield greater results than it would by sitting still. Tired of my water references yet? Let's begin!
NEAR Wallet https://wallet.near.org/
It all begins with your wallet. Your pool so to speak. (yes I can do this all day) Here you can do a number of things I couldn't at first when I activated mine: you can buy tokens, transfer them between wallets, review previous transactions and collectibles.
You can also do something that opens the first lotic of your wallet: classical staking. While quaint in the current world of NEAR, it is still safe and almost painless. What stings About it? Well, the legacy system requires a certain modicum of patience; it will require a couple of days in order to receive your tokens and staked rewards.
Your next river of opportunity could lead you here, or I think it should at least. While at face value it seems like a straightforward application for exchanges, that is the first facet of it. It also allows you to provide liquidity in various “farms", which then you can also stake your LP(liquidity provider) tokens into those same farms. By doing this, we gain tokens or fractions of them in consideration of what we have given. In addition you tend to be given the token of the application itself(Ref) that likewise has value of exchange, which further can be staked into xRef that gains interest over time.
Other Staking Options?
One possible alternative to standard staking can be found here. When you stake your coins, you are given stNEAR as a placeholder that doubles as a form of currency that can be extracted and used throughout other applications. A user can also add to the applications liquidity pool, being given back META(their token) over time as a recompense.
Relatively new on my radar but nonetheless an available option to all designers, I admit I know little about this project beyond what it does. However, if you seek a solution or alternative that offers you near instant “liquid” unstaking with interest accruing potential you can extract and reuse, this is for your use.
A unique application in the NEAR ecosystem, Burrow plays the role of lending, depositing, and collateralizing tokens. All of these have their own rates of return of course, and it's the only app on NEAR(that I've used at least) that allows your deposits to serve as consideration for loans on other coins you can use elsewhere.(or possibly within?)
Skyward Finance https://app.skyward.finance/
Another unique application involves the use of tokens already in the wallet of the user in exchange for others. Many are newer than the ones being requested, creating a risk/reward mechanic inherent that they expect each prospective investor to make their own informed decisions on.
While all of this may seem complex and foreign at first, I assure you with time you'll be surfing the waves of web3 DeFi effortlessly. You'll have to; the true secrets to the depths of revenue you can produce on NEAR can only be truly discovered by using them all in conjunction with each other daily…