Hong Kong, China -- (ReleaseWire) -- 09/28/2020 --The 2020 blockchain hotspot has become DeFi, with institutional platforms, including mainstream exchanges, rushing to capture the hotspot.In the past few years, centralized exchanges have dominated the activities of crypto market, and decentralized exchanges (decentralized finance) seem like only a rosy vision. However decentralised exchanges are now no longer a paper game: on August 31st Uniswap surpassed Coinbase for the second day in a row.At the same time, decentralised financial products proliferated.On September 3, ZB.com announced the launch of DeFi Mining and said it would "embrace DeFi with all its might".
On the same day, Binance announced that it would be launching DeFi mining products and open to subscription with BNB and USDT.At around 10:00 on September 7, Huobi Global Station announced that it would open "lock up HT/HPT to participate in DeFi liquidity Mining" at 16:00 on September 7.
About DeFi liquidity mining
DeFi Liquidity Mining is a way to get more cryptocurrencies by pledging them.At first glance, it may not seem different from Staking, which is offered by platforms such as exchanges. Yes, in a sense, it can be done at the same time as Staking.But Staking means you'll get the same cryptocurrency, and DeFi liquidity mining often get other tokens (currently mostly platform tokens).
Liquidity mining, also known as Yield Farming, uses smart contracts that keep users' fund moving between different lending markets to maximise returns.In return, users can receive token rewards.Why keep moving from one lending market to another?For example, if the rate of return in A's loan market is higher than that of B during this period, the smart contract will transfer the funds to A's market. After A while, the rate of return in C's loan market is higher than that of A, the smart contract will transfer the funds to C's market, so as to maintain the high yield in every period.The assets pledged by users provide a pool of liquidity for smart contracts, and they do not have to move assets across the lending markets, eliminating the need for onerous fees.For some small investors, the barriers to DeFi participation are even lower, because DeFi Liquidity Mining automatically implements the optimal financial strategy.
A comparison of the three major exchanges's DeFi mining products
In the following, by comparing DeFi Liquidity Mining products recently launched by the three major exchanges ZB.com, Huobi and Binance, this paper will analyze the products most suitable for DeFi small and big investors.
Among the three exchanges, ZB.com is the first to launch DeFi liquidity mining products. On September 3, 18:00, DeFi mining zone was launched to support pledging ETH to mine SUSHI token.On September 4, it supports pledging ZB to mine various DeFi tokens.
ZB.com DeFi mining entrance is located in ZAPP of ZB APP, a small application embedded in the APP. It integrates all DeFi mining services, with a simple interface and convenient entrance.
The platform starts to distribute returns at 12:00 am every day.The withdrawal period of mining is 1 day, and there is no profit during the withdrawal period.According to users' reports, the annual rate of ETH mining on the first day was 296%, and 21.2 SUSHI tokens were obtained by storing 50 ETH, and the profit was about 737QC (about 105USDT) according to the market price of the day.The current annualized rate is 145.06%.
From 18:00 to 20:00 on September 4, ZB.com opened the second phase of DeFi mining to support pledging ZB to mine various DeFi tokens. ZB.com invested 20 million USDT (about 140 million QC), plus 5% of the total revenue of other pools, as the bonus source of ZB pool.The first-day yield of the mining product was 226.16%, with total release gains of 5899.199 SUSHI and 1.999725 YFII.
On September 9, ZB.com launched the early redemption function, by which time users can redeem the mining funds at any time (service fee shall be deducted).
Huobi started the phase I activity of "Lock up HT/HPT to participate in DeFi Liquidity Mining" at 16:00 on September 7, in which HPT is Huobi Pool Token.In first phase Huobi offers 5 million USDT equivalent blockchain assets for DeFi Liquidity Mining (phase I 10 million USDT will be started in batches).The Curve token CRV generated from mining will be fully returned to the user participating in the activity lock.
Web users enter the activity page by clicking the banner on the home page, APP users click the image on the home page of the APP to participate, and rewards will be distributed the next day.HT will be automatically unlocked on the end of the event (the duration of the event is 14 days) without manual operation by the user.
Binance announced on September 3rd that its Staking platform would be open at 21:00 on the same day for BNB and USDT's DeFi Mining subscription.Among them, BNB is used to participate in Kava (decentralization lending platform) mining and USDT is used to participate in Curve (stablecoin trading liquidity pool) mining.The following is the annualized rate reference table:
It is important to note that users participating in this DeFi mining activity need to enter from Staking.
Binance launched Binance Mining on September 4, aiming to provide users with a "quick cash and easy to earn" experience.Users can quickly realize currency exchange through Binance mining, or become a liquidity provider through capital injection, enjoying commission dividend and current interest income, etc.In the first phase of Binance mining, BUSD, USDT and DAI (all stablecoins in US dollars) are online.Binance mining is not technically DeFi mining, as it is not decentralized, but slightly related to DeFi mining is that users provide liquidity in exchange for interest.Therefore Binance mining is not included in the DeFi product comparison in this article.
On September 6th Binance launched token farming product that lets users to Farm tokens using BNB, BUSD or other designated tokens.The first project issued on token farming is Bella Protocol (BEL).From 08:00 am on September 9, users can mine BEL tokens in the BNB, BUSD and ARPA mine pool for a total of 30 days.Binance's new coin mining product first listed is a relatively new decentralized financial product with experimental nature.
ZB.com, Huobi, Binance's DeFi mining products:
As can be seen from the above figure, in terms of online time, ZB.com is the first to launch DeFi liquidity mining related products.In addition to their respective platform tokens, ZB.com also supports pledging ETH and Binance supports USDT.When it comes to mining tokens, ZB.com prefers DeFi popular tokens. Huobi and Binance choose old DeFi tokens, which is more established. In addition, Binance launches a young DeFi product.In terms of settlement date, all major platforms settle in the next day, but ZB.com takes the fastest time.In terms of freezing time, ZB.com supports on-demand deposits and withdrawals(service fee is deducted). Secondly, Binance has a flexible withdrawal time of only one day.
Therefore, for new investors who has just entered the circle of DeFi, DeFi mining of ZB.com is more flexible and intuitive. All DeFi mining-related activities are integrated into ZAPP for operation and editing.Second, ZB.com's DeFi mining has a decent mining yield, the highest of the three exchanges.So I recommend that you try out ZB.com's DeFi mining.
For experienced investors who prefer steady income, Binance's DeFi mining is more appropriate, and the pledge term is varied. Most importantly, the withdrawal time is only one day, which is more flexible than Huobi's 14 days. Though Binance's annualized rate is less than Huobi's.It should also be noted that since Binance has too many mining products, investors participating in DeFi mining need to enter from Staking.