How Can You Earn on CoinWind?
As some of you have asked us in our Telegram Group the ways one could possibly earn on our DeFi platform, we have prepared this article for you for a concise explanation of what we actually are.
What do we solve?
CoinWind effectively solved a crucial problem in the DeFi space, which contributed to our astronomical growth even at the early stages of our project launch. We managed to solve the problem of impermanent loss which is a huge risk factor that users face when providing liquidity.
Participants that wish to earn passive income through liquidity mining are required to provide a 50/50 ratio of a token pair. This is necessary as the token pair enables decentralized exchanges (DEX) to function, allowing others to trade with ease. Participants will then be able to earn a portion of trading fees which is positively correlated to the trading volume of the given pool.
However, this gives rise to the problem of impermanent losses where a user could be better off HODLing their assets as compared to placing them in a Liquidity Pool (LP). Impermanent loss occurs when the price of each token changes over time causing the value of your deposited assets to be worth less than your initial investment. This is due to the fact that the liquidity pool will be interested in maintaining the ratio of tokens in the pool when the pool is drained of an asset while there is an influx of another asset. Therefore, when the price of a token increases while the other stays constant, arbitrage traders will balance it which could lead to a suboptimal outcome.
At CoinWind we offer a range of DeFi products to help you generate passive income, where it all boils down to what best fits your needs. We offer products such as Single Token Mining where users are only required to provide liquidity for a single token instead of a token pair. This, therefore, helps users avoid impermanent losses with the help of complex hedging strategies that our team formulated.
Other than Single Token Mining, we also optimize our LP mining protocols by having a reduced risk of losses and unnecessary mining fees. We provide tools that will maximize your returns by automatically compounding yours generate income with our reinvestment strategies.
Another product you could choose is Staking where you could participate in node pledge mining. We provide our users with more options, and transparency while maintaining a high level of security with the use of node multi-signature management.
How to Earn?
When you are ready to earn from your crypto assets, we also have step-by-step guides for each product type for you to follow. Click on the link of your preferred product below:
- Single Token Mining: Single token mining without impermanent loss — CoinWind
- LP mining: LP staking mining — CoinWind
- Staking: Staking Tutorial — CoinWind