Looking closer, you will realize that one of the key factors behind the current bull market in cryptocurrency is the sudden emergence of decentralized finance, also known as DeFi.
In early 2020, the total value of DeFi apps began to rise, proving that the concept of making a profit with cryptoassets beyond investing and trading is working. It also made it possible to make loans and borrowings without having to ask for permission, providing an alternative to traditional financing.
The problem with DeFi projects is that there is always a difficult technical level to overcome, which can scare off some cryptocurrency users. Either they don’t have the time, or they don’t have the experience, or they simply don’t want to put in all the effort to make an annual profit. Fortunately, PrimeXBT as well as Covesting teamed up to make it easier to install DeFi for anyone looking to get started.
DeFi overthrows traditional finance
It didn’t take long for DeFi to go from a simple idea to a functional replacement use case for traditional finance – everything is built on blockchains. Cryptocurrencies open up new opportunities for profit. This booming industry has also introduced automated market creation protocols such as Uniswap…
While some DeFi dApps (decentralized applications) focus on lending and borrowing without authorization, protocols such as Uniswap also offer annual yield (APY) for token holders who offer their cryptoassets as liquidity in currency pairs. Exchanged on the platform. Unlike typical cryptocurrency exchanges that provide liquidity to clients, users provide liquidity themselves. For example, the COV / ETH trading pair allows platform users to exchange COV for ETH and vice versa. But where exactly does the liquidity come from on each side?
Users must block tokens VOC and ETH to provide liquidity for the exchange pair. The liquidity balance on both sides influences the price movement. Those who trade the pair generate a commission, which is then split among the liquidity providers, who in turn receive a variable annualized return. The process is not overly complicated, but it involves connecting wallets and using the dApp browser to properly access the power of the Uniswap app.
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The award-winning trading platform PrimeXBT has called on Covesting, the European developer of B2B licensed software, to launch a new Covesting Yield Account module alongside the Covesting copy trading module, also available on PrimeXBT.
The Covesting Copy Trading Module makes it easy to track top strategy managers, and the all-new Covesting Yield account system offers the easiest DeFi experience.
By visiting the Covesting Yield Account section of the PrimeXBT dashboard, users will be able to access the most popular DeFi protocols from the dashboard itself with just a few clicks. No more wallets to connect, endless and complicated steps, or the likelihood that something will go wrong – just select the amount of whatever cryptoasset you want to stake, get an estimate of the current APY and start betting. Commissioning of the product is scheduled for the third quarter of 2021.
COV Utility Token Unlocks Double Annual Yield, With First Movers Earning 1%
Covesting Yield accounts will support many of the most commonly used cryptoassets today offered on PrimeXBT alongside CFD trading on Forex, Commodities, Stock Indices and more. Annual rates vary but are highly competitive, and users who sign up on the waitlist prior to launch in Q3 2021 can benefit from a 1% annual rate increase for one month.
And since Covesting is the driving force behind the development of the platform, the COV utility token will become an integral part of the experience and benefit the entire ecosystem. For example, in addition to the fact that staking opens up three new account tiers that offer many benefits, VOC staking also improves APY when using Yield Covesting accounts.
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COV token holders can earn up to 2x annual income depending on their account tier. The integration of the COV utility token into the Covesting Yield account system is also an incredible boost to the long-term value of the COV token. Its use in more and more applications will only improve demand conditions. Systematic and regular burning of tokens allows you to reduce the amount in circulation and increase the deficit.
Yield Covesting Accounts, like all innovative products produced by PrimeXBT in partnership with Covesting, provide both affordability and advanced tools that cater to the needs of both beginners and professionals. Users looking for simplicity in DeFi will find their account there, as well as power users who can take advantage of the COV token.
Yield Covesting accounts are just a tiny piece of a huge roadmap that Covesting is about to show up. The continued B2B partnership with PrimeXBT for these launches makes sense given the current success story.
To find out more, PrimeXBT and Covesting have posted blog posts on the topic. You can subscribe to PrimeXBT if you haven’t joined the waitlist yet and secured access to an initial 1% annualized profit increase.