It is difficult to ignore the growth within the Decentralized Finance (DeFI) space.
It makes sense to capitalize on the benefits of decentralized finance which has not only opened up the possibilities for improved financial inclusion, but also strengthened the possibilities for using and managing digital assets.
Staking and liquidity pools are popular solutions in the domain of DeFi for obtaining plausible returns or passive income on crypto assets. Passive income, in the context of cryptocurrency, is an incentive or reward in the form of crypto assets, which flows in regular intervals without the need for putting in a considerable amount of effort to create it.
AFOMA will be introducing a staking program to coincide with the token launch so that the community can earn more tokens. This will be available to our community of token-holders so that they can earn rewards by simply holding and providing liquidity support for the AFOMA token. Our staking program will leverage credible DeFi protocols with fully audited smart contracts. AFOMA also plans to incentivize liquidity providers through liquidity mining rewards.
AFOMA plans to leverage these DeFi solutions for good. Micro, Small and Medium Enterprises (MSMEs) represent a significant part of the world economy, and are one of the strongest drivers of economic development, innovation and employment. However, access to financing is frequently identified as a critical barrier to growth for MSMEs.
As a result, we are planning to leverage DeFi for good, where AFOMA can offer financing to MSMEs (focused within the handicraft space) looking to expand their business.
Liquidity Pools
A liquidity pool is a collection of funds locked into a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions.
Users, called liquidity providers, add an equal value of two tokens into a pool to create a market. In exchange for providing their funds, they earn trading fees (rewards) from the trades that happen in their pool, which is proportional to their share of the total liquidity.
Staking
Staking is a less resource-intensive alternative to mining. It involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of locking in cryptocurrencies to receive rewards.
It is important to factor in the risks involved with investing in such DeFi solutions. It is highly recommended that you do your own research to find the right program that fits your goals.
We will be providing more details on Annual Percentage Yield (APY) and the staking pool in our future communications. Follow us on our social media channels to get first hand information of our upcoming programs.
Kindly follow AFOMA on your favorite social media channel for updates. You can follow us on Twitter, Telegram, Facebook, Instagram and Medium or visit our website www.afoma.io
