BENQI AND YETI FINANCE LAUNCHES CONCENTRATED LIQUIDITY YIELD FARMING ON KYBERSWAP

The world of decentralized finance (DeFi) is constantly evolving, and innovative solutions are emerging to enhance liquidity and improve user experience.In a recent development, BENQI, a leading Avalanche liquid staking platform, and Yeti Finance, an innovative Avalanche cross-margin lending protocol, have joined forces with KyberSwap, a highly capital-efficient decentralized exchange (DEX) aggregator, to launch concentrated liquidity yield farming opportunities.This partnership aims to provide liquidity providers with enhanced rewards and traders with the best swap rates for sAVAX and YUSD tokens on the Avalanche blockchain. Enhancing Liquidity on Avalanche, Benqi and Yeti Partners with Kyberswap in a joint initiative to enhance liquidity and provide the best rates for sAVAX and YUSD tokens on Avalanche. Add liquidity to the eligible pools KyberSwap Elastic on Avalanche and earn liquidity mining rewards!This is a significant move in the Avalanche ecosystem as it combines the strengths of three key players to unlock new possibilities for DeFi users.

Imagine a scenario where you can not only stake your AVAX tokens and earn rewards but also utilize those staked assets as collateral for borrowing, all while participating in yield farming to maximize your returns.This is the vision that BENQI, Yeti Finance, and KyberSwap are bringing to life.With over $200,000 in liquidity mining rewards up for grabs in the initial phase, this collaboration presents a compelling opportunity for users to engage with the Avalanche DeFi ecosystem and reap the benefits of concentrated liquidity.

Understanding Concentrated Liquidity and Its Benefits

Concentrated liquidity is a relatively new concept in the world of decentralized exchanges (DEXs), offering a significant upgrade over traditional Automated Market Makers (AMMs). 126K subscribers in the AllCryptoBets community. subreddit for crypto, innovative projects, defi and new emerging markets discussion. most importantIn traditional AMMs, liquidity is spread evenly across the entire price range, which means that a significant portion of the liquidity is often unused, especially for stable pairs or assets with relatively stable prices.Concentrated liquidity, on the other hand, allows liquidity providers (LPs) to allocate their capital to a specific price range, thereby increasing capital efficiency and earning higher trading fees.

Here's a breakdown of the key benefits:

• Increased Capital Efficiency: By concentrating liquidity within a specific price range, LPs can earn a higher proportion of trading fees with the same amount of capital.
• Higher Yields: The increased capital efficiency translates to higher yields for LPs, as they are earning more fees with the same amount of liquidity provided.
• Improved Trading Experience: Concentrated liquidity can lead to tighter spreads and reduced slippage for traders, resulting in a better overall trading experience.

For example, if you believe that the price of sAVAX will remain relatively stable between $10 and $11, you can concentrate your liquidity within that range. Singapore, Aug. 17 BENQI and Yeti Finance have chosen to partner with the highly capital efficient KyberSwap in a joint initiative to enhance liquidity and provide the best rates for sAVAX and YUSD tokens on Avalanche (AVAX). This first phase of this joint initiative is set to bring liquidity providers over $200,000 in liquidity mining rewards, with more incentives to come in the nearThis means that your liquidity will be more actively used for trades, and you'll earn a higher percentage of the trading fees generated within that range. 🔺BENQI and Yeti Finance Launches Concentrated Liquidity Yield Farming on KyberSwap u/Liannewheeler ADMIN MOD 🔺BENQI and Yeti Finance Launches Concentrated Liquidity Yield Farming on KyberSwapHowever, it's important to note that if the price of sAVAX moves outside of your chosen range, your liquidity will no longer be actively used, and you won't earn any fees until the price returns to within the range.

The KyberSwap Advantage: A Hub for Liquidity and Best Rates

KyberSwap plays a crucial role in this partnership as a multi-chain aggregator and DeFi hub. Kyber Weekly Blitz (15th - 21st Aug) USD - Facebook Live. ReelsIts mission is to empower users with the insights and tools they need to achieve financial autonomy.KyberSwap provides a platform that connects liquidity from various sources, ensuring that traders can access the best possible swap rates. Crypto Yield Farming Explained How Does It Work? Yield farming is an innovative concept in the crypto space, but in reality it s just similar to savings accounts and lending in the traditional financial system. Essentially, yield farming is the practice of lending and staking your crypto assets to earn higher returns.By partnering with KyberSwap, BENQI and Yeti Finance are leveraging its advanced features to enhance the overall yield farming experience for their users.

Here's how KyberSwap benefits the BENQI and Yeti Finance ecosystems:

For Traders:

• Best Swap Rates: KyberSwap's DEX aggregation ensures that traders get the best possible swap rates for sAVAX, YUSD, and other tokens.
• On-Chain Metrics: KyberSwap provides users with on-chain metrics, allowing them to identify potentially trending tokens early on.

For Liquidity Providers:

• Concentrated Liquidity: KyberSwap's concentrated liquidity feature allows LPs to maximize their capital efficiency and earn higher yields.
• Flexibility: LPs can provide liquidity for a wide range of tokens, including stablecoins and non-stablecoins.

KyberSwap Elastic, the protocol used in this partnership, is particularly noteworthy.Its dynamic fee mechanism adjusts fees based on market volatility, further optimizing returns for liquidity providers.This makes it an ideal platform for concentrated liquidity yield farming.

BENQI and Yeti Finance: Synergistic Partners in the Avalanche Ecosystem

BENQI and Yeti Finance are both established players in the Avalanche DeFi ecosystem, each offering unique services that complement each other. BENQI is a leading liquid staking protocol that allows users to stake their AVAX tokens and receive sAVAX in return.This sAVAX can then be used in other DeFi applications, unlocking the liquidity of staked assets. Yeti Finance, on the other hand, is a cross-margin lending protocol that allows users to borrow against their entire portfolio of assets, including staked assets like sAVAX.

The partnership between BENQI and Yeti Finance creates a powerful synergy. Launch dApp. Search. KyberSwap Launches New Wave of Concentrated Liquidity Yield Farms on PolygonUsers can stake their AVAX on BENQI, receive sAVAX, deposit the sAVAX as collateral on Yeti Finance, and borrow against it. Read all stories published by Kyber Network on Aug. Kyber Network is a blockchain-based liquidity hub that connects liquidity from a wide range of sources to power instant and secureThis allows them to leverage their staked assets and participate in other DeFi activities, such as yield farming on KyberSwap.

Here's a breakdown of how the two platforms work together:

1. Stake AVAX on BENQI: Users stake their AVAX tokens on the BENQI platform and receive sAVAX in return.
2. Deposit sAVAX on Yeti Finance: Users deposit their sAVAX as collateral on the Yeti Finance platform.
3. Borrow Against sAVAX: Users can borrow against their sAVAX collateral on Yeti Finance, allowing them to access liquidity without selling their staked assets.
4. Yield Farming on KyberSwap: Users can then use the borrowed assets to participate in yield farming on KyberSwap, earning additional rewards.

Participating in the Concentrated Liquidity Yield Farms on KyberSwap

Getting involved in the concentrated liquidity yield farms on KyberSwap is a relatively straightforward process. 17K subscribers in the CryptoCurrencyClassic community. The unofficial Wild Wild West of r/CryptoCurrency. CryptoCurrency Memes, News andHere's a step-by-step guide:

1. Visit the KyberSwap Platform: Go to the KyberSwap website and connect your wallet.
2. Navigate to the Elastic Farms: Find the section dedicated to Elastic Farms, which are the farms that support concentrated liquidity.
3. Select the Eligible Pools: Identify the pools that are eligible for the BENQI and Yeti Finance liquidity mining rewards.These typically include sAVAX-AVAX, sAVAX-USDC, and YUSD-USDC pools.
4. Add Liquidity: Choose the price range you want to concentrate your liquidity in.Remember that a narrower range will result in higher capital efficiency but also a higher risk of your liquidity becoming inactive if the price moves outside of the range.
5. Stake Your Liquidity Position: After adding liquidity, you'll receive an NFT that represents your liquidity position. Singapore, Aug. 17 BENQI and Yeti Finance have chosen to partner with the highly capital efficient KyberSwap in a joint initiative to enhance liquidity and provide the best rates for sAVAX andStake this NFT in the eligible farm to start earning rewards.
6. Harvest and Claim Rewards: Regularly harvest your rewards and claim them.You can then reinvest these rewards back into the farm to compound your earnings.

Tips for Maximizing Your Yield Farming Returns:

• Research the Pools: Before adding liquidity, research the different pools and their historical performance.Consider factors such as trading volume, volatility, and impermanent loss potential.
• Choose the Right Price Range: Carefully select the price range you want to concentrate your liquidity in. BENQI and Yeti Finance Launches ConcentratedLiquidity Yield Farming on KyberSwap Farm $sAVAX $USDC $AVAX $YUSD on NFT-based liquidity mining onA narrower range will result in higher yields but also higher risk.
• Monitor Your Position: Regularly monitor your position to ensure that your liquidity is still actively being used. BENQI and Yeti Finance have partnered with the highly capital-efficient KyberSwap in a joint initiative to enhance liquidity and provide the best rates for sIf the price moves outside of your chosen range, you may need to adjust your position.
• Consider Impermanent Loss: Be aware of the risks of impermanent loss, which can occur when the price of the assets in the pool diverge.
• Compound Your Rewards: Regularly compound your rewards by reinvesting them back into the farm. A narrower range gives your higher concentrated liquidity and more fees, while a bigger range would give a higher chance of the pool always being active (and get yield farming rewards). After adding liquidity, you will receive an NFT (non-fungible token) that represents your liquidity position.This can significantly increase your overall returns over time.

Addressing Potential Risks and Concerns

While concentrated liquidity yield farming offers significant potential benefits, it's important to be aware of the associated risks and concerns. KyberSwap: Benefits for BENQI and Yeti Ecosystem. For Traders; Best swap rates for sAVAX and Yeti tokens through DEX aggregation, while letting users identify other tokens even before they trend/moon via on-chain metrics; For Liquidity Providers; Concentrated liquidity for sAVAX and Yeti pairs and any other token, stables and non-stablesOne of the main concerns is impermanent loss (IL). Other notable platforms that have adopted the KyberSwap Elastic protocol to enhance their offerings are Avalanche staking platform BENQI and Avalanche cross-margin lending protocol Yeti Finance. Both protocols recently launched concentrated liquidity yield farming on the KyberSwap platform.Impermanent loss occurs when the price of the assets in the liquidity pool diverge, resulting in a decrease in the value of your liquidity position compared to simply holding the assets.The higher the price divergence, the greater the impermanent loss.

Another potential risk is the volatility of the underlying assets. But on Yeti finance, it seems I can deposit the qisAVAX as collateral earning 9%. Seemingly, I could borrow against that as well. This doesn't seem right as now BenQi and Yeti would both hold a claim to my original sAVAX. For example, if I got liquidated on Yeti, then how could the collateral still exist on Benqi?If the price of sAVAX or YUSD fluctuates significantly, it can impact the profitability of your yield farming activities.It's crucial to carefully assess your risk tolerance and only invest what you can afford to lose.

Furthermore, it's essential to understand the mechanics of the KyberSwap Elastic protocol and the concentrated liquidity feature.Misunderstanding these concepts can lead to unintended consequences and potential losses.Always do your own research and seek advice from experienced DeFi users if needed.

It's also important to be aware of potential smart contract risks.While KyberSwap, BENQI, and Yeti Finance have undergone security audits, there's always a possibility of vulnerabilities being discovered.Diversifying your DeFi investments across multiple platforms can help mitigate this risk.

The Future of DeFi on Avalanche: A Promising Outlook

The collaboration between BENQI, Yeti Finance, and KyberSwap is a testament to the growing maturity and innovation within the Avalanche DeFi ecosystem. BENQI and Yeti Finance Launches ConcentratedLiquidity Yield Farming on KyberSwap Farm $sAVAX $USDC $AVAX $YUSD on NFT-based liquidity mining on KyberSwap ElasticThis partnership not only enhances liquidity and improves user experience but also sets a precedent for future collaborations that can further unlock the potential of DeFi on Avalanche.

Avalanche's high throughput and low transaction fees make it an attractive platform for DeFi applications.As more developers and users flock to Avalanche, we can expect to see even more innovative solutions and opportunities emerge.Concentrated liquidity yield farming is just one example of the many exciting developments that are shaping the future of DeFi on Avalanche.

With the ongoing development and integration of new technologies, the Avalanche ecosystem is poised for continued growth and success.By fostering collaboration and innovation, platforms like BENQI, Yeti Finance, and KyberSwap are paving the way for a more accessible, efficient, and rewarding DeFi experience for everyone.

Frequently Asked Questions (FAQs)

What is sAVAX?

sAVAX is a token representing staked AVAX on the BENQI platform. This guide covers yield farming on KyberSwap Elastic Dynamic Farms. It covers the following aspects of yield farming on Dynamic Farms: Staking Liquidity Positions; Harvesting and Claiming Rewards; Unstaking Liquidity Positions; Staking liquidity positions Step 1: Select farm and open a position. Select Dynamic Farm. You can view and filter theIt allows users to access the liquidity of their staked AVAX and use it in other DeFi applications.

What is YUSD?

YUSD is a stablecoin issued by Yeti Finance.It is designed to be pegged to the US dollar and can be used for borrowing and lending on the Yeti Finance platform.

What is impermanent loss?

Impermanent loss is a risk associated with providing liquidity to decentralized exchanges (DEXs). BENQI and Yeti Finance Launches Concentrated Liquidity Yield Farming on KyberSwap! 2. Kyber Network. Chris ArmstrongIt occurs when the price of the assets in the liquidity pool diverge, resulting in a decrease in the value of your liquidity position compared to simply holding the assets.

How do I minimize the risk of impermanent loss?

You can minimize the risk of impermanent loss by choosing pools with relatively stable assets, such as stablecoin pairs. KyberSwap is a multi-chain aggregator and DeFi hub that empowers users with the insights and tools to achieve financial autonomy. All the above while being fast, secure, and easy-to-use.You can also choose a wider price range when providing liquidity, but this will typically result in lower yields.

What is concentrated liquidity?

Concentrated liquidity is a feature that allows liquidity providers (LPs) to allocate their capital to a specific price range, thereby increasing capital efficiency and earning higher trading fees.

What are the benefits of concentrated liquidity?

The benefits of concentrated liquidity include increased capital efficiency, higher yields for LPs, and improved trading experience for traders.

Conclusion: A New Era for Yield Farming on Avalanche

The launch of concentrated liquidity yield farming by BENQI and Yeti Finance on KyberSwap marks a significant step forward for the Avalanche DeFi ecosystem.By combining the strengths of these three platforms, users can now access enhanced liquidity, higher yields, and a more seamless DeFi experience.This collaborative effort underscores the importance of innovation and partnership in driving the growth and adoption of decentralized finance.

By understanding the concepts of concentrated liquidity, impermanent loss, and the mechanics of each platform, you can effectively participate in these yield farms and reap the rewards. Our BENQI pools on KyberSwap have proven so popular that we have decided to keep the good times going! Liquidity mining with BENQI continues on KyberSwap. Keep reading for the full details below! To recapRemember to always do your own research, assess your risk tolerance, and invest responsibly. BENQI: Stake AVAX and earn. Seamlessly use it within DeFi. avax liquid staking. Total staked -The future of DeFi on Avalanche is bright, and this partnership is a testament to the exciting possibilities that lie ahead.

So, are you ready to dive into the world of concentrated liquidity yield farming? From ~17th March GMT8, liquidity providers can add any amount of liquidity to the eligible pools, SAVAX-KNC, SAVAX-AVAX and QI-KNC on KyberSwap on Avalanche to unlock their share of theVisit KyberSwap today and start exploring the opportunities with BENQI and Yeti Finance!Don't miss out on the chance to earn attractive rewards and contribute to the growth of the Avalanche DeFi ecosystem.