Hello Astridians! 🚀
In previous articles, we discussed the benefits of investing in AstridDAO and our stablecoin, BAI. Today, we will go through two more aspects that you should consider while making financial decisions: the APR and APY.
Knowing the differences and mechanics of various projects will allow you to use your ATID or BAI more effectively, and thus earn more!
So, hold your seat and lets’ go through all that together!
The difference between APR and APY
APY and APR are both ways of expressing the interest rate on a financial product. The main difference between the two is that APY takes into account the effects of compound interest, while APR does not.
In the world of DeFi, APY is often used to express the interest rate on a savings or lending product, while APR is used to express the interest rate on a borrowing product. This is because savings and lending products typically compound interest on a regular basis, while borrowing products do not.
For example, if you have a savings account with a 1% APY and you deposit $100 in it, you would earn $1 in interest after the first year. If you leave that $1 in the account for the second year, you would earn another $1.01 in interest (1% of the original $100 plus 1% of the $1 in interest from the first year). In this way, the interest compounds and your money grows at a faster rate than it would with a non-compounding interest rate.
On the other hand, if you have a borrowing product with a 1% APR and you borrow $100, you would owe $101 after the first year. If you don’t pay off the loan in the first year, the interest would not compound and you would still owe $101 at the end of the second year.
So, in short, the main difference between APY and APR is that APY takes into account the effects of compound interest, while APR does not. This can make a big difference in the growth of your money over time, so it’s important to understand the difference when considering financial products.
Where is the best place to use your ATID or BAI?
1) AstridDAO
If you go to our website, it would be easy to find the overall APR in the dashboard👇
Though the figure is dynamic, it reflects the potential of making a profit in AstridDAO for a certain period. AstridDAO now supports eight mainstream assets with a rather competitive APR in Astar Network. You can choose to deposit your assets to borrow BAI and stake in AstridDAO. We are working on bringing you more native assets from the Polkadot ecosystem, to be more SAFU!
2) SiO2 Finance
SiO2 is a protocol for users to quickly and easily deposit and borrow assets on Astar Network. Depositors can provide liquidity to earn interest as a stable passive income, while borrowers can leverage their assets without selling them out.
A lending protocol is one of the core Lego Blocks of DeFi composability.
It is a public, decentralized marketplace of assets that can be accessed not only by a user but also by bots and other DeFi protocols. In addition, SiO2 provides a comprehensive set of lending features, with a focus on the assets handled on Astar.
SiO2 tutorial guide — https://medium.com/sio2-finance/sio2-finance-is-live-on-astar-network-c2be8b67d24b
Supply BAI APY
Borrow BAI APR
There will be much more synergy between AstridDAO & SiO2 Finance in the future. For an example, we will be adding sTokens from SiO2 as collaterals, and potentially expand ATID as collaterals too. — AstridDAO Team
3) Arthswap
In DeFi, liquidity providing refers to the act of supplying funds or assets to a liquidity pool. These pools are typically created on decentralized exchanges like Arthswap and other DEXes and allow users to trade assets without the need for a central authority or intermediary.
To provide liquidity to a pool, a user must deposit a certain amount of funds or assets into the pool. In return, they receive liquidity tokens that represent their share of the pool. The value of these tokens is typically tied to the value of the assets in the pool, so as the value of the assets increases or decreases, the value of the tokens will also increase or decrease.
Liquidity providing can be a good way for users to earn passive income, as they are rewarded for providing liquidity to the pool in the form of fees collected from trades. It can also help to improve the liquidity of a particular market, making it easier for users to buy and sell assets.
ATID & ASTR Liquidity pool
BAI Liquidity pools on Arthswap
4) AVAULT
A yield aggregator like Avault, is a type of algorithm or platform used in decentralized finance (DeFi) to help users maximize their returns on investments. In general, yield aggregators allow users to combine their investments across different DeFi protocols and earn higher returns than they would by investing in any one protocol individually.
For example, a yield aggregator might allow users to invest in a combination of lending, staking, and liquidity mining protocols. By using the yield aggregator, the user can earn the highest possible returns on their investments by automatically allocating their funds across the different protocols. This can help to reduce the risk of investing in any one protocol, as the user’s returns will not be tied to the performance of a single protocol.
Yield aggregators are an important tool in the world of DeFi, as they allow users to take advantage of the high yields offered by various DeFi protocols without having to manage multiple investments individually. This can save time and effort, and can help users to earn higher returns on their investments.
The aLP/aToken is provided to users who deposit their LP tokens from other dapps. The vault will then automatically reinvest deposited funds. — Avault
BAI Liquidity pools on Arthswap
5) Sirius Finance
In the world of DeFi, AMMs like Sirius Finance are commonly used on decentralized exchanges (DEXes) to facilitate the trading of tokens. Because these exchanges are decentralized, there is no central authority or intermediary to determine the prices of assets. Instead, the AMM algorithm uses a mathematical formula to set the prices based on the supply and demand of the assets in the market.
One of the key benefits of AMMs is that they can help to improve the liquidity of a market by automatically adjusting the prices of assets based on real-time supply and demand. This makes it easier for users to buy and sell assets, and can help to reduce the spread (the difference between the buy and sell prices) of the assets on the market.
Overall, AMMs are an important tool in the world of DeFi, as they help to facilitate the trading of assets on decentralized exchanges and improve the liquidity of the market.
BAI Metapool
Avault 4pool
5) Zenlink
Similar like Sirius Finance, Zenlink is AMM. BUT, they upgraded to Hybrid AMM in recent months. Lets’ see Hybrid AMM means:
What is Zenlink Hybrid AMM?
Zenlink Hybrid AMM is made up of both stable and conventional AMM. Stable AMM uses the Curve curve, which allows two tokens with comparable market values (such as stable coins) to conduct large-value transactions with very little slippage. The Uniswap v2 method is used by standard AMM, which allows users to flexibly establish any trading pair and adjust to market fluctuations in real time. In the event of greater depth, it can also enable reduced slippage trading.
What’s the benefit of Hybrid AMM?
Meet the risk tolerance of various LPs. Risk-averse LPs can contribute assets to the stable pool, generating consistent transaction fee and farming revenue while avoiding temporary losses. Risk-taking LPs can also contribute to the regular pool. Although they will incur some unknown temporary losses, they can also earn a very large Farming income.
Meet different user transaction demands. We may creatively mix stable pools with extra depth and diverse standard pools with Smart Route to give consumers with the best pricing and trading experience.
Zenlink Stablecoin 4pool (BAI)
6) Kagla Finance
Kagla Finance is another AMM (Automated Market Maker) and StableSwap protocol on Astar Network with a low trading fee (0.04%).
BAI+3KGL pool
These are the current methods to leverage your ATID and BAI to maximize your earnings. Please choose everything really carefully and precisely. This article is not intended to provide financial advice, but rather to provide a general overview usecases of AstridDAO stablecoin BAI and protocol token ATID.
We will be introducing many more assets to the AstridDAO app in the near future, and this time we will expand outside the borders of the Astar Network. So prepare for a lot of news, especially at the turn of the year.
The whole AstridDAO team thanks you for your support this year, and we look forward to embarking on a new year and a new journey together! We wish you a wonderful and relaxing holiday! 🎄🎁
About AstridDAO
AstridDAO is a decentralized money market protocol and multi-collateral stablecoin built on Astar and the Polkadot ecosystem, allowing you to borrow $BAI, a stablecoin hard-pegged to USD against risk assets at 0% interest and minimum collateral ratio. This mechanism enables you to leverage the value in your risk assets, including $ASTR, $BTC, $ETH, and $DOT, without selling them.
