Articles about #yieldfarming

Yield Farming Academy #2 Defi Ecosystems

04/10/2023

Home | News & Insights Yield Farming Academy #2 Defi Ecosystems This is the second lecture of a series on “Leech Protocol” from our Yield Farming Academy. In this tutorial, we will review the DeFi Ecosystems. We will cover the following topics in this session: So make yourself comfortable, grab your favorite beverage if you like, and let’s kick offour tech journey! What is DeFi in general? Decentralized finance, or DeFi, represents a new wave of innovation in the financial sector that initially began with the advent of the Ethereum blockchain and its smart contracts. So that we can understand Defi better, let’s begin by exploring its origins. The traditional stock market, where you can buy and sell stocks, has an entire ecosystem of tools at its disposal in working with assets. This ecosystem includes exchanges for trading equities, lendings, futures and options markets, synthetic assets, derivatives, and much more. This all began in the 17th century with the first stock exchange in Amsterdam and the first derivatives exchange in Japan. The modern stock market offers a variety of financial instruments that possess interconnectivity. For example, you can buy shares through an American broker, pledge them as collateral, take out a loan, and then invest the loan in an index fund. However, despite all of these possibilities, existing financial instruments have many limitations and problems that Web 3.0 technologies can solve. For instance, exchanges only operate at certain times, which creates inconvenience for trading on the other side of the world. Moreover, permission and queue waiting are required to obtain loans secured by various assets. The interfaces of these tools could be more appealing and convenient. Web 3.0 technologies offer solutions to these problems. The Ethereum blockchain and its Solidity programming language allow the creation of a smart contract that can operate on a 24/7 basis worldwide. Interactions with smart contracts are accessible from anywhere and do not require a KYC for use. Applications built on smart contracts can perform the essential functions of stock market instruments. Thus, it is possible to improve the world of financial instruments by creating them on the blockchain. In 2019, the first DeFi projects appeared on the Ethereum blockchain, such as Uniswap for asset exchange and MakerDAO for issuing stablecoins backed by Ethereum. These were the first steps in creating a new evolutionary financial world stage. What is DeFI Ecosystem? Decentralized Finance (DeFi) represents an ecosystem of financial instruments built on blockchain and web3 technologies. In 2020, a period often referred to as the “DeFi Summer,” decentralized applications, or dApps, experienced explosive growth. Many new projects emerged to disrupt traditional finance during this time, and even separate blockchains were explicitly created for the new era of financial instruments. For instance, Binance Smart Chain was made as an alternative to Ethereum, as transaction fees on the Ethereum blockchain were very high. Subsequently, blockchains such as Polygon, Fantom, and others emerged as well. New DeFi projects quickly appeared on these blockchains, forming a unique Financial ecosystem. Today, there are about 30 categories of decentralized financial instruments and approximately 2,500 working projects. Each of these projects perform specific functions that its developers embedded. Often, these functions were adapted from stock market instruments and improved by implementing Web3 technologies. Developing its own DeFi ecosystem benefits each blockchain, as it creates utility for its main coin, ultimately increasing its market value. In addition to paying for gas transactions, the coin can be used, for example, as collateral in lending protocols. For example, you can get a USDT loan by pledging ETH. Defi applications on each blockchain often interconnect, as they can be built on top of each other. For example, the LIDO protocol allows retail users to become validators and earn rewards by creating new Ethereum blocks. When you deposit ETH into LIDO, you receive a derivative that confirms your position in the LIDO protocol. This derivative is called stETH, and it trades freely on markets. There are also lending protocols that accept stETH as collateral for obtaining loans. You can exchange g stETH and get a USDT loan. The lending protocol is built on the assets from another protocol. This concept is called “DeFi Lego.” All these projects and their interconnections compose the DeFi ecosystem. Components of every DeFi ecosystem Each blockchain’s decentralized finance (DeFi) represents a complex ecosystem of various components and essential centers. DeFi represents these components through different projects that can be divided into categories. Projects in each category perform similar functions. For example, the “Lending” category includes various lending protocols. Here are some types of projects within the DeFi ecosystem and their functions: Liquid Staking: These protocols enable you to become block validators without additional maintenance and earn rewards. Liquid Staking also provides a tradable and liquid token for your staked position. Decentralized Exchanges (DEXs): These are protocols for asset exchanges. They use a peer-to-contract-to-peer model. Some users list assets in smart contracts, while others make asset exchanges. Lending Platforms: These are platforms where users can lend and borrow cryptocurrencies. Interest rates are often determined by supply and demand dynamics within the platform. Yield Farming: These products involve lending or staking cryptocurrencies in return for rewards, often in the form of additional cryptocurrency. Projects in this category can use simple and complex strategies to generate returns. Leech Protocol is a good example in Yield Farming niche. Derivatives: These are blockchain-based contracts that derive value from an underlying asset. These assets can be cryptocurrencies or other real-world assets. Asset Management Tools: These platforms help users manage their crypto investments across chains and products. Liquidity Aggregators: These platforms pool liquidity from various sources to facilitate trading and improve liquidity. Synthetics: These are blockchain-based financial instruments that mimic the value of real-world assets. Options: These are financial derivatives that provide the buyer the right, but not the obligation, to buy or sell an asset at a specific price on or before a certain date. NFT Marketplace: These platforms allow users to create, buy, and sell NFTs

2nd security audit and Early Birds Galxe Campaign for 🔥 APRs!

28/09/2023

Home | News & Insights 2nd security audit and Early Birds Galxe Campaign to access 🔥 APRs! Leech Protocol Early Birds Campaign Calling for all degens and DeFi enthusiasts! Leech Protocol is excited to share details about new security audit, highly-incentivized pools, and a new Galxe campaign to become whitelisted! TL;DR: Leech Protocol is an app that provides a user-friendly solution for simplifying the yield farming process across all major blockchains and platforms. We automate user routines, automatically performing tasks such as swapping, bridging, depositing, and compounding when using our Mixed Pools! Second Security Audit Safety and security are paramount in the world of DeFi, and we’re committed to delivering a trustworthy platform. We’re proud to reveal that Leech Protocol has successfully completed its second comprehensive security audit. We scored 10 out of 10 points from Hacken auditor – which is a great result! You can learn more details here! Private Yield Farming Strategies While the concept of yield farming is familiar, Leech Protocol is taking it to a new level. Our team has been hard at work testing and refining private yield farming strategies that are exclusively available for our Leech Club members. This means that by being part of the Leech Club, you gain access to unique yield farming opportunities that are designed to maximize your returns. Profit Sharing and Algorithm Expansion In line with our commitment to community engagement, we’ve decided to allocate a portion of our profits to incentivize our public pools. As we introduce new platforms to our yield farming algorithms, this incentive mechanism will encourage liquidity provision at this intermediate step! Increasing Maximum Wallet Allocation We’re pleased to announce that the maximum per-wallet allocation has been increased to $3000 for all whitelisted users. New users will have a chance to join via Galxe campaign below! Introducing the Early Bird Galxe Campaign To allow new users to join our community, we’ve launched the Early Birds Galxe campaign. This exciting initiative offers the chance to win and claim exclusive OAT tokens and experience APR rates ranging from 90% to 120% on the app. These exceptional rates will be paid out after 30 days of the upcoming hyper-incentivization epoch. To join app.leechprotocol.com as a whitelisted user – you need to complete all steps on Galxe, claim OAT, and wait for Email-notification, that you are whitelisted to join the platform and you can provide liquidity! As we look ahead, Leech Protocol is dedicated to pushing the boundaries of DeFi innovation. With security as our foundation and community empowerment as our driving force, we’re excited to shape the future of decentralized finance, one milestone at a time. Stay connected with us on Twitter for the latest updates, and join our Telegram chat in case you have a question! Disclaimer All cryptocurrency transactions, and especially those in the yield farming, including the Leech Protocol app and its announced Early Bird Galxe Campaign, involve multiple risks, including always the risk of losing all or part of funds used. You ****understand and agree that you use the Leech Protocol app at your own risk. You should therefore carefully consider whether it is suitable for you in light of your circumstances, experience and financial resources. You should be aware that you may sustain a total loss of your deposit while using our platform. You understand and assume this risk in full. IN ANY CASE, WE DO NOT BEAR ANY LIABILITY FOR ANY OF YOUR ACTIONS OR INACTIONS, ERRORS, OMISSIONS OR MISTAKES, OR FOR ANY OTHER CIRCUMSTANCES OCCURRED IN THE PERIOD OF YOUR USAGE THAT LED TO THE FULL OR PARTIAL LOSS OF YOUR DEPOSIT. Share: Twitter Facebook Telegram

Yield Farming Academy #1 Crypto Wallets

29/09/2023

Home | News & Insights Yield Farming Academy #1 Crypto Wallets This is the first lecture in the Yield Farming Academy section from the Leech Protocol. The path of any crypto enthusiast begins with the creation of a wallet. In this lecture we will tell you all about wallets and even more. Sit down comfortably, make yourself a cup of tea and we’ll start our tech journey! Table of Content What is Crypto Wallet and how it works? A cryptocurrency wallet is like a digital safe that allows you to store, manage, and use your cryptocurrencies securely. It’s a tool that helps you interact with the exciting world of digital assets safely and conveniently. When you create a cryptocurrency wallet, you create a unique digital identity for yourself. It’s like having your own virtual bank account but with the benefit of complete control and privacy. A critical aspect of a cryptocurrency wallet is the creation of your private and public keys. The private key is a confidential piece of information that only you should know. It’s like your secret password to unlock your wallet and make transactions. The public key, on the other hand, is like your public address. It’s what you share with others to receive funds. What is Crypto Wallet and how it works? Using a cryptocurrency wallet is as easy as using any other digital tool. Once you’ve set up your wallet, you can check your balances, send funds to others or receive funds. When you initiate a transaction, your wallet digitally signs it with your private key to prove that you’re the rightful owner of the funds. This signature is then broadcasted to the blockchain network, where it gets verified and added to the decentralized ledger. This way, you can be confident that your transactions are secure and transparent. In addition, it’s impossible to reveal your private key from the signature. It’s important to note that different types of cryptocurrency wallets are available on the market. Some wallets are custodial, meaning they are provided by third-party services that manage your private keys on your behalf. Others are non-custodial, which means you have complete control over your keys and funds. Another critical point in understanding how wallets work is that your assets are not stored in a wallet, they are stored on a blockchain, and the wallet allows you to manage them. With the right cryptocurrency wallet, you can dive into the exciting world of digital currencies and decentralized finance with confidence and peace of mind. Safely store your funds, manage your transactions, and explore the endless possibilities of crypto and the DeFi world. We created this session of Yield Farming Academy to describe all the essential aspects of crypto wallets. Please read it carefully and check our tutorial at the end. Also, we prepared some quests & tasks for you to prove your knowledge. The Evolution of Crypto Wallets The Evolution of Crypto Wallets Crypto wallets have come a long way to cater the evolving needs of users and enhance security measures. Let’s explore the notable developments in the evolution of crypto wallets: By embracing these advancements, crypto wallets have evolved into sophisticated tools that empower users to securely store, manage, and transact with their digital assets. Ultimately, choosing a cryptocurrency wallet depends on your needs and preferences. Consider security features, user-friendliness, compatibility with cryptocurrencies, DeFi interaction and backup options. Researching and selecting a reputable wallet that aligns with your requirements is always better than trusting someone’s opinion. Custodial and non-custodial wallets Custodial and non-custodial wallets are two different types of cryptocurrency wallets that differ in terms of control and custody of private keys. Custodial and non-custodial wallets Custodial Wallets: Custodial wallets, also known as hosted wallets or third-party wallets, are wallets where the private keys of the users’ cryptocurrency holdings are held and managed by a third-party service provider. In this type of wallet, users rely on the custodian to safeguard their private keys and manage their funds. Examples of custodial wallets include wallets provided by cryptocurrency exchanges like Coinbase, Binance, or Kraken. Pros of Custodial Wallets: Cons of Custodial Wallets: Non-Custodial Wallets: Non-custodial wallets, also known as self-custody wallets or user-controlled wallets, are wallets where users have full control over their private keys. In this type of wallet, users generate and store their private keys locally on their devices or in a secure offline environment. Non-custodial wallets do not rely on any third-party service provider to manage the private keys or access the funds. Examples of non-custodial wallets include software wallets like Electrum, MetaMask, and Argent, or hardware wallets. Pros of Non-Custodial Wallets: Cons of Non-Custodial Wallets: When choosing between custodial and non-custodial wallets, users should consider factors such as security, control, privacy, and their own level of expertise in managing cryptocurrency wallets. In our industry, we have amazing Quote. Not Your Keys, Not Your Coins! It is essential to weigh the trade-offs and choose the option that aligns with their preferences and requirements. We recommend using non-custodial wallets for most of the crypto portfolio. The public key & wallet address and private key & seed phrase Let’s dive into more technical aspects of the relationship between the public key & wallet address and private key & seed phrase: The public key & wallet address and private key & seed phrase Public Key: The public key is a publicly shared cryptographic key for encryption and verification. It is derived from the private key using a mathematical algorithm. Public keys are required to encrypt data or verify the authenticity of digital signatures. They are accessible to others without compromising the security of the encryption process. For example, when someone wants to send you an encrypted message, they use your public key to encrypt it. Only you, as the holder of the corresponding private key, can decrypt and access the message. Wallet Address: A wallet address is a unique identifier used in cryptocurrencies to receive funds. It is a string of alphanumeric characters, such as a Bitcoin or Ethereum address. 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