04/05/2022
1. What is DEFI mining (liquid mining based on USDT on the Ethereum chain)
Defi, the full name of Decentralized finance, is a kind of blockchain-based finance. It does not need to rely on financial institutions such as brokerages, exchanges or banks to provide financial tools, and operates transactions without any third-party intervention. A peer-to-peer network is realized, and a decentralized environment is established where everyone can freely connect and manage their own assets,
For example, Ethereum uses smart contracts on the blockchain for financial activities. As of the end of June 2021, the DeFi market size is above $48 billion. Provides a transparent, open source, permissionless decentralized financial environment for those who transact.
For example: Binance Exchange's Staking, DEFI mining, the comprehensive annual interest rate is higher than 25% (Binance APP English version picture for example)
2. What are the benefits of DeFi?
First, DeFi is to move traditional finance to the blockchain network. Compared with the traditional, it achieves decentralization through the blockchain, that is, removes the role of the middleman, thereby reducing the huge amount of money brought by the middleman. cost, but also increased trust and security.
Second, Defi’s liquidity is highly innovative. Greatly stimulated the enthusiasm and liquidity of the market
Third, liquidity mining is a way to generate rewards through wallet holders who receive node credentials and then join the liquidity income pool. To earn mining rewards, cryptocurrency holders store funds in their liquidity wallets, making them liquidity miners to earn rewards
Fourth, Tether enables the project to have a wider community base by issuing USDT tokens on the Ethereum blockchain, encouraging people to provide liquidity in their own capital trading pools. Those who participate in mining provide liquidity and heat to the market, and also receive community rewards from it.
