Potential future for Ravencoin in the DeFi space
I’ll keep this short because A LOT of information has already been written about.
The opportunities are in the following: Staking, Liquidity Providing “farming”, Collateral Lending, and RVN Backed Stablecoin
Here is the initial post for the RVN backed stable coin.
Ravencoin + OpenDAO: $RVn Backed Stable Coin
In a cruel twist of irony, it is my understanding, that this project did NOT take off because the community was actually “to decentralized”… wow! Essentially, when these DeFi projects take off there is normally a foundational/initial funding of the coin, assets, or some type of collateral by those in charge of the coin. The problem is that no traction could be found to secure this initial funding, because surprise surprise RVN is controlled by…{in Bane’s voice from Batman}…. “you… the people”…. So due to the massive decentralization it didn’t take off.
Lo! The opportunity has come back around in its revolution… dare I say.. Ravelution… kaw kaw! Which is the purpose of this post.
Some quick info on the opportunities: 1) Staking – Earn interest 2) Liquidity(LP) – Earn transaction fees from a liquidity pool 3) Collateral Lending – take out a loan against your RVN.. could buy more RVN 4) Stablecoin – Stable priced coin, perhaps to help with #2.
There are inherent risks with all types of finance and DeFi so be sure to read the links provided and ask as many questions as possible.
Regarding here is an article about a different coin doing Yield Farming which would be similar to how LP would work with Ravencoin. There are interesting links within this article for even more information.
Yield Farming with Stablecoins on BSC:FET+MTLX – 2 New USDO Pairs & 4 New Pools
One of the major concerns with being a Liquidity Provider is something called “Impermanent Loss”. I’m not going to try to explain it, yes there is another link. Essentially, volatility could result in a slight loss of initial position however the resulting portion of the fees you receive can more than make up this loss….
Understanding Impermanent Loss
With that said, there is apparently a way to avoid this through various mechanisms, but basically you dont stake both sides of the pair, just one side and you earn for your LP’ing and funnel those earnings to another LP pool. I believe this ties into a thing called a “virtuous cycle” where your returns start to increase exponentially.
Yes, it all can be quite confusing but this is the point of this post to see if there is any interest in DeFi with RVN and to answer any questions and/or address any concerns.
You can find more information about OpenDao here, which will be spearheading the effort(i think) if it is so desired by all of you kawing ravenites.
Also, the staking, liquidity providing and so on would take place through various platforms of OCP
Word of warning! If you start looking around and find something labelled “v1” which has a RVN type coin do NOT attempt to use it, as this is the project that was abandoned that I mentioned earlier.
Ask questions, raise concerns, lets hear it!
submitted by /u/Neubtrino
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