(1/6) Token hodlers will be able to earn high yield by lending out their crypto assets on Beta Finance, enabling users to borrow and short these assets. But wait your tokens are getting shorted, so why should you lend them out?
(2/6) Token holders need not fear shorts. Shorts are meant to reduce token volatility making markets stable and efficient. And this efficiency facilitates healthier long-term value accrual of the token. No more catastrophic token dumps!
(3/6) Short sellers pay premium interest rates to lenders and buy back tokens to close positions. Lenders earn higher APYs than on existing money markets with the greater premium and borrow-to-short activity. Lenders earn more tokens without additional trouble, just deposit!
(4/6) To incentivize utilization, Beta Finance uses a dynamic interest rate model, where we target an optimal range of 70 - 80% utilization. Parameters measuring deviations from this optimal range will dynamically adjust the money market’s interest rate to an efficient rate.
(5/6) With high utilization, APY can go as high as 1000+% for lenders! And there is no fragmentation for our lending pools. Once you deposit, you are earning the maximal APY for your token.
(6/6) Beta Finance finally enables DeFi users to earn yield on all their crypto assets easily. Make sure to follow us for details on our upcoming launch soon!
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(1/6) Beta Finance enables anyone to create a money market for any token at any time and initiate short positions easily through our 1-click short!
Let’s dive into how users can create money markets and earn high yields on all their crypto assets.
(2/6) Say $ALPHA doesn’t exist, just enter the $ALPHA token address, and our dApp will give you the option to create the new money market. Click the button, and now you can start lending and earning high APY on your $ALPHA tokens!
(3/6) Yes, that’s it, a button click. Completely permissionless and automatic for users. There will only be one lending pool per token, so once it’s created users will be able to perpetually interact with the money market.
(1/8) Last Friday Beta Finance hosted an AMA with @AlphaFinanceLab! There were a lot of great questions, so in case you missed it, here are the highlights!