Yield farming, DeFi, and more aren’t just buzzwords. They’re popular trends that have become so because they’re making people a ton of money, and they’re enabling new permissionless versions of traditional finance concepts such as lending, borrowing, and earning interest or yields on idle assets.
In traditional finance, banks lend out your money, fuel business opportunities, and provide other types of liquidity to their customers. But all you get in return is a measly 0.04% rate in conventional savings accounts.
In DeFi, however, there are rates more than twenty to fifty times that – all available to anyone by locking up idle crypto assets many investors are holding for the long term anyway.
Here’s more on what an APY in DeFi is and how to generate industry-best APY with PrimeXBT’s new Covesting Yield Accounts, slated for later this year in Q3 2021.
What Is An APY?
An APY is an annual percentage yield, or the rate of return on capital if left sitting in an institution or, in the case of DeFi, locked up in a smart contract after one year. Rates are variable and fluctuate with market conditions and liquidity.
In popular DeFi applications like Uniswap, users are able to generate an APY by locking up crypto assets within a liquidity pool. Take the COV/ETH pair, for example, on Uniswap. On centralized platforms, liquidity is offered by the company itself. But because Uniswap is a decentralized exchange or DEX for short, the liquidity comes from users who stake crypto assets in the COV and ETH pools.
Why would anyone do that, you ask? The APY, of course. Like regular trading platforms, there are fees for trading COV/ETH, and those fees are then distributed autonomously to those staking their COV and ETH tokens in the related liquidity pools.
The challenge here is that to access a decentralized app like Uniswap or others and utilize it properly; users must connect to the blockchain via an Ethereum wallet. If just mentioning that sounds like too many steps or is too intimidating for you – don’t worry, you are not alone. Which is why PrimeXBT and Covesting have teamed up for Covesting Yield Accounts.
What Are Covesting Yield Accounts?
The Covesting Yield Account module is a software solution that connects PrimeXBT’s easy to understand and use account dashboard system to the wild world of DeFi. It acts as a direct connection to platforms like Uniswap, but without all the difficult extra steps. Simply make a deposit to a secure PrimeXBT account as you would when making a trade or loading up a margin account, but instead access the Covesting tab.
There, Covesting Yield Accounts will be included come Q3 2021 alongside the Covesting copy trading module. This peer-to-peer solution lets followers copy the trades of any of the strategy managers ranked on Covesting’s transparent and global leaderboards.
By eliminating the noise and technical steps related to accessing the best APY rates in DeFi, PrimeXBT and Covesting will enable a new generation of novices to begin to realize the full potential of decentralized finance.
How To Maximize APY On PrimeXBT?
Speaking of full potential, there are also more ways to get even more out of the Covesting ecosystem that lives on PrimeXBT. Covesting software is offered to PrimeXBT customers through a white-label licensing agreement. The team also created the COV utility token, which is central to all modules the team develops.
In addition to integrating the COV token to promote long-term value for token holders, it also unlocks a variety of benefits for the most active users of the advanced trading platform. By staking COV tokens, another pillar of DeFi technology, users can access up to a 2x APY boost when using new Covesting Yield Accounts.
APYs can be increased further with a 1% early bird boost accessible by signing up to an already growing waitlist. To secure a 1% bonus and join the waitlist, you must be registered to PrimeXBT.
In addition to Covesting Yield Accounts and the Covesting copy trading module, PrimeXBT also offers built-in charting tools, long and short positions, stop-loss orders, and all the tools both novices and professionals alike need to stay competitive in today’s ultra-volatile markets.
With CFDs on forex, stock indices, commodities, and all of the hottest crypto assets, traders, investors, and now DeFi users need to look no further than PrimeXBT.
