Banks (Traditionally called Vaults) employ a different yield generating strategy, but fundamentally work in a similar manner:
- 1.Users deposit a single-sided crypto asset into a Bank and receive bToken as a representative claim on that asset.
- 2.The asset is then deployed into an alpha-seeking strategy to generate the best possible return.
- 3.Returns are distributed back to the pool, causing an appreciation in bToken.
- 4.The User receives BLKD tokens in addition to the alpha-seeking strategy yield as a reward for supplying the initial asset.
Similar to farming rewards, Bank rewards are also supplemented by treasury revenues.
BLK.Finance Farms are not yet live! Please follow us on Twitter for more updates!
The Farms allow users to earn BLKD token rewards and yields based on supplying various liquidity-providing assets. Each of these farms requires a different LP token to be staked.
Donation Farms will have no deposit fee and will donate directly to sponsored non-profit organizations and philanthropic initiatives. Users will be able to write their profits from the farm off as a tax deduction, and non-profit organizations get a steady source of income from our platform.
Farming tokens have a problem for their owners. To keep users farming, they have to mint ever more coins. This completely destroys the value of the underlying token, due to excessive inflation. It's easy to find examples of this across the DeFi ecosystem. Our solution to this problem lies in our reserve currency model popularized by Olympus DAO.
- 1.Create additional revenue through the sale of bonds.
- 2.Allocate a portion of that revenue to farm and bank rewards
- 3.Payout rewards proportionally to strategies based on DAO goals approval.
This simple process means that those providing their cryptocurrency assets to our aggregator can perpetually earn. See Staking $BLKD Tokens for more information.