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As the altcoin segment recovers from the aftermath of the crypto winter of 2022 and recent regulator attacks, more and more cryptocurrency enthusiasts are looking for ways to profit from DeFi protocols.
Image of onyx
Non-custodial credit/credit mechanisms are popular and beginner-friendly protocols designed to allow cryptocurrency holders to earn income from their assets. Onyx (XCN) approaches the challenges of this segment in a completely new way.
Onyx (XCN) DeFi offers no-deposit crypto lending for newbies and pros: highlights
Launched in March 2023, Onyx’s (XCN) DeFi protocol allows cryptocurrency holders to earn income from lending and lending operations on its non-custodial platform:
- Onyx Protocol, or Onyx, is a 100% on-chain lending and borrowing protocol for the Ethereum (ETH) blockchain cryptocurrencies and non-fungible tokens;
- The Onyx protocol supports collateralization of all major fungible and non-fungible token standards, including ERC-20, ERC-721 and ERC-1155;
- Onyx economics are underpinned by Onyxcoin (XCN), its native dual-design BEP-20/ERC-20 token;
- Onyxcoin (XCN) is used as a liquidity provider rewards tool, a governance tool and part of the XCN-WETH liquidity pool, while Onyxcoin (XCN) restaking opportunities are also available;
- Onyxcoin (XCN) has been listed on a number of major centralized (Coinbase, KuCoin, Kraken, Bitfinex) and decentralized (Uniswap, PancakeSwap) exchanges;
- Onyx leverages its built-in Crypto Punks wrapping protocol, a premium NFT collection, to create Wrapped Punks (WPUNK) tokens, which can also be collateralised.
Simply put, Onyx is an example of a community-managed non-custodial DeFi machine with feature-rich lending and lending toolkits.
What is DeFi?
Decentralized Finance or DeFi is a type of financial protocol without centralized governance. Technically, each DeFi protocol is a combination of smart contracts designed for various financial operations, including lending and borrowing, collateralization, and cross-asset conversion.
DeFi protocols have been around since 2017, when the first decentralized exchanges on Ethereum (ETH) went live. DeFis run on all blockchains capable of supporting smart contracts, with Ethereum (ETH), BNB Smart Chain (BSC) and Polygon (MATIC) being among the front runners.
DeFi’s popularity exploded in 2020 thanks to its ability to distribute benefits fairly among liquidity providers. Also, most of them do not have KYC checks.
What is decentralized lending and borrowing?
Most DeFi protocols allow crypto holders to lend and borrow digital assets. For example, instead of selling Ethereum (ETH) or Binance Coin (BNB), crypto holders can collateralize them in an on-chain protocol, purchase US Dollar Tether (USDT) or other popular stablecoins and use them for trading. In addition, the protocols reward their liquidity providers for using their money in operations.
Similarly, cryptocurrency users can lock their tethers (USDT) to receive regular staking rewards in a predictable manner. The larger an asset’s market cap, the lower its annual percentage returns for DeFi lending protocols. For example, you can easily stake new-style, small-cap altcoins with a three-digit APY, while US dollar tether (USDT) and bitcoin (BTC) holders can only get 2-5% per year for legitimate services.
What Is Yield Farming And Why Is It So Popular?
Yield farming is a common name for the practice of providing liquidity to a DeFi protocol in exchange for periodic rewards. Typically, a user locks their crypto token to receive payouts either in the form of a native token of the protocol or a synthetic token associated with this or that DeFi.
Also, some DeFi protocols offer payouts in popular altcoins, including Ethereum (ETH) and Binance Coin (BNB). The popularity of yield farming skyrocketed in 2020 during the so-called DeFi summer.
Yield farming has gone mainstream thanks to its beginner-friendliness: you can just lock some crypto and start generating rewards right away. Also, the price of some LP reward tokens increased; Yield farming has become a major source of income for crypto newbies.
Introducing Onyx (XCN), a community-managed DeFi lending protocol with native token
The new generation DeFi lending protocol Onyx combines the best practices of the segment and makes the processes of decentralized finance operations streamlined and resource-efficient.
Onyx (XCN) DeFi: Basics
Onyx (XCN) is a multifunctional decentralized finance protocol with modules for lending, borrowing, staking, governance and yield farming. It allows users to profit from on-chain trading, provide liquidity to pools, stake native assets Onyxcoin (XCN) and so on.
Image of Onyx
Onyx (XCN) runs on the Ethereum (ETH) protocol: it supports the popular Ethereum-based token standards ERC-20 (fungible assets), ERC-721 and ERC-1155 (non-fungible assets). Users can collateralize different types of cryptocurrency assets with Onyx (XCN):
- Blue-chip stablecoins US Dollar Tether (USDT), USD Coin (USDC), Gemini USD (GUSD), Dai (DAI), Pax Dollar (USDP), and even gold-pegged stablecoin PAXG;
- Largest Altcoins Ethereum (ETH), Uniswap (UNI), Chainlink (LINK) and Polygon (MATIC);
- Popular meme coins Shiba Inu (SHIB) and ApeCoin (APE);
- Synthetic Assets Wrapped Bitcoins (WBTC);
- Native Onyx’s cryptocurrency, Onyxcoin (XCN).
Onyx (XCN) DeFi: Instruments and Features
Lending and borrowing modules are the basic elements of the Onyx design (XCN). They allow crypto holders to pledge their assets with just a few clicks. To lend their cryptocurrency, users simply need to connect Metamask wallets, authorize operations, move Ethereum (ETH) or other coins to lend, and start earning income from their staked tokens.
APY stats, operational history and yield prospects can be tracked in real-time in the My Account menu. There is no time limit for use: users can withdraw their liquidity at any time.
In the Stake module, users can benefit from blocking Onyxcoins (XCN), the native cryptocurrency of the Onyx service. In the “Swap” module, users can swap cryptocurrency holdings among themselves without custody.
Last but not least, users in the “Farm” module can benefit from the supply of liquidity to the decentralized XCN-WETH pool.
Onyx (XCN) DeFi: Community Governance and Native Token
Onyx (XCN) is among the first decentralized lending/credit protocols to be community governed from its inception. To participate in community referenda, users should stake Onyxcoins (XCN), a core native cryptocurrency of the platform.
For example, at the end of July 2023, XCN holders can use tokens to vote for OIP-19: Budget allocation for the current operational proposal.
XCN’s maximum supply is capped at 48 billion tokens, with 25 billion locked in treasury and 23 billion released for circulation. The cryptocurrency can be purchased on Onyx’s main website or through leading centralized and decentralized exchanges. The token is now available on KuCoin, Coinbase, Uniswap, Kraken, Bitfinex, PancakeSwap, Bittrex, Gate.io and so on.
Onyx (XCN) DeFi: APYs and Gas Refund Program
Highly competitive APY prices are available for all assets available on the Onyx (XCN) platform. The highest rates can be claimed for staking BAYC, MAYC and WPUNKS, which are synthetic assets associated with “wrapped” blue-chip NFTs.
Among the stablecoins, the largest APY is offered for Pax Dollar (USDP); The asset can bring its holder over 33% annually. Mainstream stablecoins can stake at 6-7% of the APY, while Ethereum (ETH) stakers can claim 11.18% of the rewards.
Image of Onyx
XCN can be blocked at 19.82% APY through a “Markets” menu, XCN-WETH pool at 53% APY and Direct Bet Module at 37.74% APY.
All operations on Onyx (XCN) are subject to the gas refund program; Therefore, there is no need to wait for Ethereum (ETH) gas to go down while trading, staking, injecting liquidity, etc.
Wrap up
Onyx (XCN) is a multi-product DeFi protocol for on-chain lending and borrowing of cryptocurrencies and NFTs. It allows crypto users to collateralize their fungible and non-fungible tokens.
Through an easy-to-use dashboard, crypto owners can lock their holdings to receive regular payouts proportional to their contribution.
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