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Dot.Finance: Everything About The DeFi-Driven Yield Farming Solution

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In the crypto space, Dot.Finance and its DeFi-powered platform is one new set-up to look out for in the coming years.

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Leading the yield farming innovation, Dot.Finance features a variety of products that give investors access to a range of superior financial tools.

This allows the optimal use of digital assets via techniques that give impressive compounding interest. 

Dot.Finance is a platform that sets its sights on incentivizing a worldwide network of computers to run on a blockchain.

Users can launch and even operate their blockchains through Dot.Finance. In this article, you’ll find out everything you need to know about Dot.Finance.

Dot.Finance Offering and Polkadot Ecosystem

Dot.Finance focuses on putting the Polkadot ecosystem and its diverse uses in the spotlight for a wide range of investors.

This helps make Polkadot adoption around the world spread faster.

What’s more, it helps leverage the adoption of services that Dot.Finance runs on a reliable, resilient, and secure architecture.

Dot.Finance is a project that is backed by several brilliant minds well versed in all things decentralized finance.

It runs on the Polkadot network with staking functionality, yield farming, liquidity pools, and other DeFi products in its sights. One thing Dot.Finance hopes to achieve sooner rather than later is to draw different types of users closer to DeFi. 

By doing this, it increases their exposure to unrivaled advantages of the Polkadot ecosystem.

With its sights and operations set firmly on Polkadot, Dot.Finance will mix solid, powerful DeFi solutions with Polkadot’s architecture that is simply powered by creativity.

Doing so should open a window to needful innovations in financial services that will benefit enthusiasts and investors in the blockchain industry.

The Nature of Dot.Finance’s Yield Farm 

While yield farming and staking share a resemblance, Dot.Finance hosts both protocols and makes it easy to earn through them.

Yield farming entails providing liquidity in form of loans with the aim of earning interests after a stipulated period. 

Staking, however, involves funding proof of stake (PoS) protocols to enable the network to mine and confirm transactions while investors can earn rewards in return.

Both concepts are applications of DeFi protocols and are getting mainstream among crypto enthusiasts.

Investors provide funds known as liquidity pool (LP) tokens to the Dot.Finance farming pools to be used as loans. Usually, users can get these LP tokens from BSC decentralized exchanges (DEX).

They include stable coins such as USDT and BUSD and tokens such as BNB, PINK, DOT, and LINK.

Dot.Finance’s LP tokens come in underlying pairs using formats such as DOT-BNB LP, PINK-USDT LP, PINK-BNB LP, etc.

Dot.Finance partners with BSC-backed Pancakeswap, which supports a sundry of Dot.Finance’s LP tokens. You can follow these steps to purchase LP tokens on Pancakeswap:

  • Visit Pankcakeswap and connect your web wallet by navigating to the top right section and tapping “Connect Wallet.”
  • Next, go to farms and select your preferred Liquidity pair. Tap on “Details” to expand it.
  • Next, click on the “Get Pair” link and “Confirm Supply” to complete the transaction.

There is a more detailed guide on Dot.Finance’s FAQ on how to get LP tokens.

The PINK Token, Staking, Collecting Rewards, and Fee Structure

The PINK token is Dot.Finance’s governance token earned as a CAKE reward on its platform.

With this, users can earn the privilege of partaking in DAO governance protocols which will see them flex their innovative contributions to the future of Dot.Finance.

The PINK token was introduced as an incentive to increase the earning margin of investors. Not only that, users can participate in staking pools and earn interests aside from their initial investments.

After successfully staking, rewards can be withdrawn as BNB, a BEP20 token available in BSC-driven exchanges.

Dot.Finance’s native token has surged by over 47% in stakes, with a market cap of over $9 million and over $6 million in total value locked (TVL).

The token has also garnered a worth of over $1.02, which proves its rising adoption in the crypto market.

Dot.Finance is relatively free as fees are reinvested and shared among investors.

However, to provide liquidity and orderliness in the platform, Dot.Finance charges a 0.5% fee if staked PINK tokens are withdrawn within 72 hours of staking.

Collecting Rewards On Dot.Finance

Dot.Finance intuitive UI makes it easy to collect rewards. Investors have the option of withdrawing only their profits or both their initial deposits and profit.

That said, Investors can, at a glance, find their way to the collection section. Here are the steps you can take to collect your rewards on Dot.Finance:

  1. First, toggle to the farming section on the Dot.Finance homepage, and click on it.
  2. Next, by the left, you will find a section labeled “Earnings,” click on the “Withdraw” button to move your funds to your connected wallet.

The “Withdraw and Collect” option, on the other hand, entails collecting both your initial capital and interest.

It is no different from the process of just collecting rewards. Enter the number of tokens you wish to withdraw in the “Amount” box provided and click on “Withdraw and Collect” so you can complete the process.

But if you wish to withdraw just your initial investment, click on “Withdraw.”

Why Dot.Finance

When it comes to the issues that farmers may encounter in other spaces, Dot.Finance takes a different, problem-solving approach to yield farming.

The platform assists farmers in avoiding these cuts to yields and earning the highest returns they possibly can.

What’s more, working on the Binance Smart Chain means that the transactions are not only faster, the gas fees are incredibly low.

When compared to a space like Ethereum, this is a steal. Besides, Dot.Finance’s smart contracts help users automatically compound their returns at the optimal frequency.

This is so they can increase their APY. Dot.Finance gives yield farmers impressive compounding and automation scale.

In summary, Dot.Finance brings ease, speed, and value to yield farming opening a whole new world to profitability and efficiency.

Conclusion

The team at Dot.Finance has been working round the clock since the launch of the platform and its yield aggregator.

Strategic cooperation with enthusiastic partners is helping the team at Dot.Finance expand its ecosystem with hopes of launching a governance model on the way.

With Chainlink, STONE DeFi, and Polkadot as key partners, Dot.Finance has its focus on yield farming seekers with funds on the Binance Smart Chain network.

And with a team of widely-known and reputable auto-compounding and blockchain juggernauts, users can be sure of beneficial optimization when it comes to yield farming.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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