4 Ways You Can Earn With iGain IRS
iGain IRS was initially released by Hakka Finance early this year with the intention of providing a competitive fixed interest rate alternative in the DeFi market compared to variable rates.
It allows users to hedge against fluctuations of rates by purchasing a native leverage token on the platform called LONG 🟢 and SHORT 🔴 tokens, thereby locking the deposit and borrow APY, making it predictable and more profitable in the long run.
But that’s not all. There are actually 4 different ways to make money with iGain IRS:
1- Fixed lending
Lending your cryptocurrency in DeFi is almost similar to lending your money in a bank: you make a deposit, and you get interest rate in return.
However, the problem with DeFi is most yields are floating, meaning: it’s not a reliably fixed source of income. Your rate could be 5% this week, and could be 2% one the next. Not ideal
This is one of the things that iGain IRS solves in the DeFi market. With the use of iGain’s special derivative tokens called LONG & SHORT, users can now have their interest rate in DeFi FIXED, instead of a floating one, so, your 5% APY will be 5% all throughout its term.
Nonetheless, your yield in DeFi is still generally higher compared to the average rates that you get in a bank.
TIP: If you lend at least $10 on iGain IRS, you will be able to unlock Mission #4 on Hakka Finance’s Play2Earn game, and claim a special Hakka NFT!
2- Fixed borrowing
Another DeFi feature you can do on iGain IRS is to borrow money. This was made possible by the integration of Aave protocol on our platform.
To start borrowing on iGain IRS, you need first to have enough collateral on Aave. But again, in DeFi, most interest rates are floating, and that does not exempt borrow interests.
iGain fixes your borrow interests on Aave, and it comes at a very competitive stable rate. With this, the interest becomes easily predictable, thereby allowing you to calculate and invest on a higher yield than your borrow rate.
That is what you call leverage, or using borrowed assets to invest in an asset with a higher return.
Take a look at the illustration below:
You borrowed $1,000 USD with annual percentage rate of 3%.
Your interest rate in 1 year for $1,000 will be $30 USD.
If you invested that borrowed $1,000 with a 7% annual return, your $1,000 would earn $70 in a year.
Deduct the $30 borrow interest to your $70 gross profit, and you just earned $40 out of thin air.
3- Trading
Unknown to many, cryptocurrency coins are not the only volatile assets you can trade on the market.
For the third time, most interest rates in DeFi are fluctuating, and with fluctuation, comes opportunities to trade and do arbitrage.
4- Liquidity Mining
Last but not the least, if you don’t want to deposit, borrow, or do arbitrage trading, liquidity providing might be an option for you.
Liquidity pools are the backbone of every DeFi platform in the market, and that includes iGain IRS. Liquidity pools, from the word itself, provides liquidity to the yields on the iGain protocol.
They are normally ran by an algorithm called AMM (Automated Market Maker), and are executed by a smart contract.
Check our article about liquidity providing here.
Announcement: September 2022 Campaign
We are starting September with a special campaign that anyone can easily participate into!
By just accomplishing simple tasks such as following us on Twitter, joining our Discord server, or even depositing $10 on iGain IRS, you will get a chance to be 1 of the 10 winners of 100k HAKKA tokens inside the iGain Token Jar.
Join via Genki here.
Campaign period is until September 30th, 2022.
Terms and conditions apply.
