Wrapping up a successful private funding round, Don-Key is gearing up to introduce a platform to bring together liquidity providers and yield farmers, incentivizing participants to work together and share the benefits.
New Platform Brings eToro’s Social Element To DeFi
Decentralized finance (DeFi) and yield farming are two of the hottest areas in cryptocurrency today. After the DeFi ecosystem’s total value locked (TVL) crossed $4 billion in early 2020, yield farming was introduced to maximize the rate of return on capital by leveraging several protocols.
Yield farming consists of several complicated strategies and isn’t another get-rich cryptocurrency scheme. It involves lending crypto holdings using smart contracts. In return for this, lenders earn fees. Although straightforward in principle, yield farming is a risky pursuit that demands constant attention, whether moving holdings between different marketplaces to maximize returns, tracking the continually changing APYs, and frequently optimizing strategies.
In most cases, yield farming works with liquidity providers (LPs) that add funds to liquidity pools. These pools contain funds locked in smart contracts, and in return for providing liquidity to the pools, the LPs are rewarded, usually with fees generated by the underlying DeFi platform. However, the biggest obstacle is that most users belonging to these two distinct groups don’t possess the skills to create strategies for holding a low volume of funds for a consistent yield.
After a private funding round, Don-Key is developing a social yield farming platform, where gamified social trading strategies will incentivize participants to work together and reap DeFi’s rewards. The platform has just closed a $2.2 million round from leading blockchain funds, such as Morningstar Ventures, Spark Digital Capital, Genesis Block Ventures, Black Edge Capital, MoonWhale, Solidity Ventures, and AU21.
As a user-friendly amalgamation of yield farming and DeFi that reflects eToro’s approach to financial markets, Don-Key represents the long-awaited toolbox for LPs and farmers. The platform offers several ways for the previously mentioned stakeholders to gather capital, manage DeFi strategies efficiently, and grow assets with minimal fees to maximize returns.
Ensuring Consistent Yield And Distributed Income
To ensure yield farmers enjoy a seamless planning tool, combined with gamified social trading experience and endless liquidity to execute strategies, Don-Key introduces the first social platform that brings together liquidity providers and yield farmers.
The platform will serve as the entry point for inexperienced individuals who wish to explore the world of DeFi with small starting capital amounts. It will act as the cohesion point where yield farmers can maximize their assets alongside consistent return generation, allowing transfer of liquidity from different protocols with zero fees.
Don-Key’s new platform boasts several features, including copy farming, strategy builder, farmer and investor reputation management, non-custodial pools, and additional rewards for top-performing LPs and yield farmers. Besides the myriad features for yield farmers, the platform will also offer dedicated features for LPs, including multi-layered investor access, capital assignment, and governance.
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