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That’s a very googleable question, but in a nutshell it is a series of smart contracts that reward token holders for holding a staking a token. It incentivizes
by diveanon 5y ago
That’s a very googleable question, but in a nutshell it is a series of smart contracts that reward token holders for holding a staking a token.
It incentivizes investors to buy and hold instead attempting to trade the asset and create unwanted volatility.
It can also raise funds through a small fee structure that can be applied on deposit of non-native token pools.
- pjc50 5y agoOK, so it's a shadow bank: lend long, into other people's short term borrowing. So it must have extremely high interest rates? Which raises the question, who's borrowing all this and how's it collateralized?
- diveanon 5y agoI think you are starting with an incorrect assumption and trying to work your way backwards from it. If you want more mature examples of this structure in the wild I would start with pancakeswap ($4b market cap) and apeswap ($500m market cap).