DeFi Money Market recently added a lucrative new opportunity for users to make money on their crypto holding. Apart from interest on deposits, the company will now provide staking benefits to the users.
Yield farming for users
DeFi Money Market is a decentralized finance project that already provides interest in cryptocurrency deposits which are as high as 6.25%. It announced today that the introduction of yield farming-style rewards to its users. Yield farming allows users to earn interest on deposited assets by providing liquidity to a DeFi protocol.
This means that DMM users can start staking the stablecoin-pegged tokens that they receive. Hence, they became liquidity providers for other decentralized exchanges like Uniswap. Doing this can bring rewards from DMM in the form of DMG, a governance token.
Liquidity in DeFi continues
The total liquidity in the DeFi sector is growing continuously. In July, the total liquidity in the sector was less than $2 billion at the beginning of July. According to DeFi Pulse, that number has gone up to $7 billion today. More projects are now taking advantage of the governance token distributions. They bootstrap liquidity in their tokens and hence bring more interest in their platforms.
DeFi Money Market uses the concept of short-term mutual investments in the cryptocurrency sector. Starting in March 2020, it provides users 6.25% in annual yields of their stablecoin deposits. The platform currently accepts deposits of DAI, USDT, and USDC. The depositors get to earn interests on their deposits and get DMM versions of their stablecoin tokens.
DAI tokens provide mDAI, USDT tokens provide mUSDT and USDC provide mUSDC. Users are allowed to trade these coins like their original deposits. The DMM tokens, pegged to their original stablecoins, can be traded on different exchanges as synthetic stablecoin assets. The users are allowed to cash out and unlock the stability of the underlying stablecoin. They can also choose to stake ETH and get mETH in return.