A critical part of being able to attract a crowd of hungry users is organic network effects, in DeFi this is commanded by quality incentives.
Sync DAO knows this is the key to driving adoption!
Yield Farming (otherwise known as liquidity mining) allows you to get reasonably safe and stable returns from lending and borrowing on DeFi protocols PLUS you receive rewards in the form of governance tokens which are typically more volatile assets but they increase your effective yield substantially. Hence the Yield Farming 👨🌾 meme.
One of Sync DAOs key innovations is to allow you to earn a piece of other’s yield, enabling you to referral yield farm based on the deposits others make.
Recently Compound opened the flood gates to yield farming on mass. This had billions of capital surge into the market in just a few short weeks recently(tripling the market cap of DeFi and more).
However, some people are being left out, for a number of different personal reasons. For some, it is that they “don’t have the time” or the time and attention it takes isn’t worth it, based on the size of the capital they have to play with.
This is where referral yield farming swoops in to save the day, increasing the yield to users who join the system disproportionally to the capital they themselves actually have. Balances deposited by their referrals are sharing a small fraction of the interest with them for helping show them DeFi and how to earn.
Effectively you could be liquidity mining from ZERO assets of your own, by simply leveraging your personal and social connections in order to get yield.
Here are the 4 easy steps to Yield Farming:
- You deposit some DAI into our DeFi lending smart contract.
- You then signup to be an affiliate, with our affiliate smart contract.
- Share your link with your personal networks.
- Your contact signs up to earn returns on with your referral link.
Now you’re benefiting in 4 ways too:
✅ Earning GREAT interest on any deposit/s you’ve made
✅ Earning 10% of interest earnt from any referees deposits
✅ Plus you will be Yield Farming SDG tokens on your deposits
✅ Finally, you Yield Farm SDG tokens on the interest earned from referees deposits too!
This means you can have little or a lot of “effective capital” regardless of your own capital positions.
You will be able to earn interest without capital from Monday (3rd of August 2020) when we will pull back the curtain for the first time and show you this technology in action.
The future for Sync DAO is helping the network effects to occur naturally in the DeFi ecosystem so it can spread like wildfire.
Speaking of spreading quickly, you may remember in 2009 the DARPA Red Balloon challenge where the MIT Media Team was able to find 10 red weather balloons across America using social media in under 9 hours, leading them to win a cool $40,000 prize.
This proved just how uniquely important democratizing incentives is in getting quality information transmitted fast!
Much of the transformative potential of social networks lies in the promise of democratization of information and capabilities that had previously been the exclusive purview of privileged government or corporate institutions.
DeFi is by design an inclusive digital financial system for all. The way the MIT Media Team won the prize is the same way that DeFi wins against the legacy financial system.
By bringing people together, you could be using your social networks and personal connections to participate in fairly distributing access to incredible products that only DeFi can offer.
Together we will bring quality products to the people!