Here we are, back at all-time highs, and Bitcoin is sucking all the air out of the room. As Polkadot and Polygon close out the week as the top gainers with only 20% upside. Bitcoin continues uncorrelated to anything yet again. Listening to both sides of the pond you’ll hear calls for breaks above $100k as well as dips down to $15k. But, the fact always remains that 1 Bitcoin is still worth 1 Bitcoin and you’ll inherently know when you won’t need to dollar cost average anymore. Looking to help you earn the best stablecoin APY possible, this week we’ll be looking into the new DeFi yield platform Gro Protocol.
Introduction
Gro Protocol wants to deliver the best DeFi yield possible by continuously optimizing a range of market-neutral yield strategies focused strictly on stablecoins. To include lending income, trading fees from Automated Market Makers, and protocol incentive farming.
What makes Gro unique in its process of delivering yield is a built-in Gro Risk Balancer. This risk tranching module distributes smart contract and stablecoin risk in a targeted way that autonomously balances a portfolio of assets to enable tranching of smart contract and stablecoin risks. It is this technological innovation powering Gro protocol that enables the PWRD stablecoin and Gro Vault to operate.
Initially, the protocol is launching these risk- and yield-tranched products at once to offer different levels of entry for returns. Whether you’re an experienced trader or fresh off the fiat boat, there’s something for everyone. All deposits on Gro are algorithmically and in a non-custodial manner allocated to either set of strategies. While depositors into the Vault receive a higher proportion of system yields, they also take on additional smart contracts and stable coin risk. As the Gro Vault is designed to be the highest-yield stablecoin Vault on the market. The PWRD stablecoin receives a smaller part of the system yield but is guaranteed protection against the risks. As it’s designed to offer safer access to DeFi yields, tokenized as a stablecoin with built-in yield and protection backed by DAI, USDC, and USDT. There are a few different ways to access both products currently. You can use the dApp, Argent for mobile, or interact with the smart contracts if you’d like.
Yields in DeFi come from three main sources: lending income, trading fees from automated market making, and protocol incentives. Lending platforms pay users for locking their assets into a smart contract. Borrowers can use these funds, at interests, a part of which is paid to the lenders. Lending and borrowing are governed by smart contracts and loans are over-collateralized to cut the risk to the system. With mechanisms in place so that if the value of the debt exceeds a certain proportion to the value of the collateral, the collateral automatically gets liquidated to pay off the debt. With Automatic market makers, you have liquidity pools that help arbitrage between two or more assets and enable traders to exchange their assets. This activity generates fees that go back to those who have provided the funds. The price of each asset relative to the other is inversely related to its comparative liquidity. If the liquidity pool contains more of one asset than another, that asset will be cheaper relative to the other.
Users generally contribute to liquidity and…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
