A review of Defi concepts linked to EthicHub.
On February 22, we launched our Liquidity Mining program with the stated purpose of linking the possibilities of Decentralized Finance — DeFi with the real and productive economy.
READ IN SPANISH — https://medium.com/ethichub/un-repaso-a-algunos-conceptos-defi-%C3%ADntimamente-ligados-a-ethichub-5585d1bc95c5
Many new concepts can be completely alien or confusing for users who are gradually incorporating Blockchain technology and decentralization possibilities. Logically, it should not lead to any frustration or make us fall into the temptation to give up. More experienced users have also had to go through the phase of learning and experimentation.
The only vital thing is to have a little interest and curiosity and an open mind to understand the new disruptive scenario and tools that the ecosystem provides to create new collaborative proposals.
One of these new terms, closely associated with the DeFi world, is known as “Yield farming”. This alternative allows users who participate in pools set up for this purpose to obtain a passive return. In these pools, anyone can actively participate by contributing their crypto assets without losing exposure to them.
As they are open and decentralized protocols, no one has to ask permission to participate in a pool. In this way, many small users can provide liquidity to the pools so that other users can exchange tokens.
There are many pools with hundreds of cryptocurrencies ready to be exchanged. All the participants in this modality share the commissions proportionally, and other users pay for exchanging the tokens.
The first obvious consideration is that we can now buy and sell tokens without resorting to Centralized Exchanges and that the commissions they charge are now directly destined for users. At EthicHub, we have opened a Balancer pool so that anyone can buy and sell Ethix in exchange for Dai.
Another possibility that the “Yield farming” ecosystem gives us is to offer new incentives beyond commissions to promote liquidity and pool volume. And this possibility is what we know as Liquidity Mining.
An extra distribution of tokens also favors users who participate in Liquidity Mining. The tokens are distributed in proportion to their representation in the pool. And this is the program that we launched at EthicHub on March 22, on Uniswap, with the ethix / ether pair.
As Uniswap is an open and decentralized protocol, any user who owns both tokens can participate in the pool and, in return, receive new tokens that represent their proportional participation in the pool. And this is how anyone can participate in our Liquidity Mining program, distributing 1000 ethix daily among all Ethixholders.
For that, you have to stake those new tokens — called U-ETH / ETHIX — on our website and press the stake button in the Uniswap Ethix / Ether pool, confirm the different interactions with your wallet. And that’s it!
Welcome to our Liquidity Mining program!
Remember, Ethix plays a significant role in our ecosystem. It gives investors confidence in the platform because it acts as collateral for the loans. This is how we create a collaborative ecosystem and indirectly help farmers increase the volume of loans we manage.
In case of default, these tokens are the third guarantee circle executed to compensate investors. The first two are the tokens that the project originator stakes and the tokens in the compensation system, and that are 50% of all the ethix issued.
For more information, we recommend that you also visit our blog, where you will find more detailed articles about the Defi ecosystem, the ethix token, and other news related to the growth of EthicHub.
