Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investing in cryptocurrencies involves significant risk and readers should always do their own research and consider their own financial situation before making any investment decisions.
Mare Finance is a borrowing and lending platform on the Kava EVM blockchain that allows you to earn rewards by providing and borrowing stablecoins such as USDC, USDT, and DAI. This guide will walk you through the steps to deploy, borrow and use your assets on Mare Finance.
Borrow USDC, USDT or DAI
To borrow money from Mare, the security you provide determines your credit limit. Mare stablecoins have a collateral factor of 80%, allowing you to borrow almost 80% of the collateral provided. On the platform you can see your exact borrowing limit and use the slider to choose the amount you want to borrow.
Borrowing from Mare earns you $MARE rewards that are shared among suppliers and borrowers. The number of rewards you get is prorated depending on the amount borrowed compared to others. The interest increases the loan amount and also increases your credit limit ratio. So pay attention to how close you get to the credit limit.
Borrowing allows you to earn using a secondary yield farming strategy while preserving your wealth.
Use of Your Borrowed Assets
Once you have borrowed assets, you can use them in a number of ways:
- Delivery to borrow: You can deliver Kava Lend USDC or USDT and earn Kava Premiums.
- Delivery to Equilibre: Borrow equal amounts of USDC and DAI and then deliver to liquidity pools on Equilibre to earn VARA issuance.
- supply of the curve: Borrow equal amounts from USDC, USDT and DAI and then deliver them to Curve 3’s pool to earn trading fees generated in this pool and KAVA rewards.
- Subsequent delivery to Mare: After using your borrowed assets to farm on other platforms, you can always bring them back to Mare and continue earning more rewards and interest.
If you decide to resupply Mare with borrowed assets, use caution as interest rates can add up quickly.
Compounding Your Rewards
By farming on multiple platforms, you accumulate different types of rewards. To maximize your earning potential, consider increasing your rewards by betting on Mare, Kava, and Equilibre.
stake out mare
You can use your MARE tokens to earn additional rewards. Two options are available: uMARE and sMARE.
- Use for uMARE. By using your MARE tokens in the uMARE pool, you will earn VARA, KAVA and USDC rewards. The exact APY will vary based on market conditions, but at the time of writing it is well into the hundreds.
- Use for sMARE. Staking in the sMARE pool earns you MARE, VARA, and KAVA rewards. As with uMARE, the exact APY varies, but at the time of writing it is well into the hundreds.
Remember that when staking from MARE, you receive a staking derivative that you need to reclaim your staking tokens.
Stake kava
Another way to earn rewards is by wagering KAVA tokens. Besides earning liquid KAVA rewards, staking KAVA also strengthens the KAVA chain and allows you to participate in governance decisions.
Lock GOOD & Voting
You can lock your VARA tokens on Equilibre to gain voting rights and earn voting APY in the form of trading fees and bribes.
In summary
Mare Finance offers a yield farming opportunity for crypto investors to earn rewards by providing collateral and lending stablecoins. You can then use borrowed assets to generate further income through secondary farming strategies on various platforms such as Kava Lend, Equilibre, and Curve.
More rewards can be earned by staking and locking VARA tokens for voting rights. It’s important to remember that yield farming comes with risks, and it’s important to understand and manage those risks before participating.
Conduct thorough research and keep an eye on market trends to make informed decisions. Yield farming may have some risks, but if managed carefully, it can potentially offer significant rewards.
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