0VIX DeFi Overview: How to generate income on 0vix protocol
Have you ever wondered and wished you could do a lot on the DeFi space, following the rapid increase of the adoption of blockchain technology by various multi-chain. An environment where you can borrow cash without your identity being known and lend that cash to earn some assets, or having to program your own asset so that someone can execute/begin a business with you, with neither parties scared of being cheated. As you read down, this article would give a comprehensive knowledge on how to make money on 0VIX.
Insight on Decentralized Finance (DeFi)
DeFi has been a big innovation in the crypto space, and challenging the traditional finance world. The concept of permissionless operation, for easy borrowing and lending, trading and lots more.
The use of smart contracts makes it easy and accessible by anyone and everyone with an internet connection. However the introduction of Ovix protocol tends to modify the financial atmosphere in the crypto space today.
How does this connect with Ovix Protocol
0VIX is a Decentralized Finance (DeFi) liquidity market protocol, built on Polygon.
The 0VIX protocol enables users to effortlessly lend, borrow and earn interest with their digital assets. Depositors providing liquidity to the procotol earns passive income, while borrowers are able to borrow in an over-collaterized manner.
With an open and permissionless liquidity market, anyone with a wallet can use the products and third-party protocols are invited to build and as well generate further yields.
EARNING STRATEGIES IN OVIX
0vix offers ample opportunities to earn stable and sustainable yields. I’ll give a quick run down on how to make money with the protocol.
Simply, staking is the process of locking up cryptocurrency holdings in order to earn interest on them. 0vix protocol provides all users this opportunity, where you can lock your 0VIX for a specific period of time in a pool. During this period you earn the ve0VIX which is the protocol native token.
NOTE: The higher the staking period and amount, the better the rewards
Steps to locking 0VIX
- Click on any assest you want to lock
- Enter the amount of 0VIX you want to lock
- Choose the locking period you wish
- Approve transaction
- Lastly, Click on LOCK and start earning ve0VIX
Users deposit assets into liquidy pools and these assests are lent out by the protocol to other users. When people lend on Ovix they earn interest, just like a bank would and conversly when people borrow, they pay interest.
On Ovix protocol you can supply to the pool of assets like:
Quick guide for supplying assests on Ovix
Follow this steps to supply assets:
- Launch 0vix app and connect your wallet address.
- Navigate to the “Supply Markets” on the market page
- Click on the asset you wish to supply
- Choose the amount of the token to be supplied or press Max to deposit the wallets entire balance of the token.
- Approve the token in the Supply tab
- Press the supply button to initiate the transaction and deposit the tokens.
On 0vix protocol, users can borrow assets and offer already supplied assets as collateral for the borrowed assets. A borrowing limit is set to enable users to pay back their loans on time. The user can borrow more money if the collateral value increases. Collateral will be at risk if the collateral value drops or if interest accrued on the borrowed balance exceeds the liquidation threshold.
Steps to borrow an asset
- Launch the 0vix app and connect your wallet address.
- Navigate to the Borrow Market on the Markets page
- Select the asset you wish to borrow
- Input the desired amount you want to borrow
- Click BORROW
The repayment period for loans is not fixed. Users whose positions are safe may borrow for an indefinite period of time.
To repay, go under “Borrow” in the market section.
Once the “Borrow” dialogue box has been opened by clicking on an asset class, select the “Repay” tab, enter the desired repayment amount, and confirm the transaction.