I am holding and staking DeFi token Sovryn and looking forward to SmartBCH in the future too.

1 38
Avatar for francis105d1
2 years ago

One of the tools you can use with any DeFi protocol is staking your holdings to get rewards while waiting for a price increase. Not all DeFi tokens will go up in price, but some will because they are built with good fundamentals, and their tokenomics are well established and defined.

In my case, I have chosen to move my money to Sovryn SOV because it is DeFi on the Bitcoin Core BTC network; that being said, it doesn't mean that SOV will increase in price just because it works alongside Bitcoin on a sidechain. If nothing more, working with Bitcoin sidechains could become a hindrance because many in the BTC community think. Pretty much anything that Bitcoin BTC is the ultimate store of value, and as such, you should only hold it and hold it until it gets to 100 million for each BTC.

Assuming that Lightning Network finally works and that all issues get resolved within the next 10 to 30 years, Bitcoin could become the final store of value, but so far, LN is just a glorify custodian service if you don't have enough funds to open and close your channels; unfortunately, the average that each person should hold is 0.003BTC which today is only enough to open one single channel, and you are supposed to have at least 16 channels to have a well-connected node and for payments to go through regardless of circumstances. So LN fixes the peer-to-peer currency without the need for centralized custodians in the future; that is, you have the issue of DeFi.

Ethereum has shown to the world that cryptocurrencies have uses besides peer-to-peer currency and store of value with the term decentralized finances, which is just a suite of tools that let you do some actions using the blockchain instead of centralized entities. Here enters Sovryn, which could be the LN solution to the DeFi protocol; it could be that in the future, everything will run on Bitcoin, but we are not sure of that because of the nature of future events, we don't know, as such I could say that Sovryn has a great chance of becoming what BNB, UNI have become but now in the Bitcoin network.

LP farming means that you could lose money to impermanent loss and that if the price of a token goes too high and never goes down, you could be losing on a lot of money and that rewards obtained from LP farming could not be enough upset the impermanent loss. So you have to stake where you don't need to split your money half and a half but provide a time frame and your tokens, with the downside that if price falls, your holdings will have less value; at least that is true if you must stake for a specific time. Sovryn does require a time frame, and it penalizes you for early unstaking.

In the case of Bitcoin Cash, you have many tokens and dexes, and each dex has its token, and you have many opportunities, but many dexes won't make it at the end of the day and will lose support case and point the Milk token. Smart Bitcoin Cash is a direct competition to RSK, and as such, I do believe both networks will have a future because they will compete to attract new users; so far, the RSK network is winning if you count price and money dedicated to the protocol, but that could change once more, and more people realize that using RSK is not cheap to use at all.

What I am doing with RSK Sovryn you could do it with SmartBCH Mist and many other tokens, staking, LP farming, and at some point even margin trading with leverage. I think that DeFi has a future with both network BTC and BCH. It depends on what price you get in and when you start to see user adoption.

4
$ 5.87
$ 5.87 from @TheRandomRewarder
Sponsors of francis105d1
empty
empty
Avatar for francis105d1
2 years ago

Comments

Wish you best of luck and have Many more wishes and prayers for you. I really happy to read tht type of information and fantastic way to get more and more successful life

$ 0.01
2 years ago