As a lender
One of the key features of decentralised finance (defi is the ability for users to truly ‘be their own bank’. For many this means complete control of their own funds and the ability to use these as they see fit.
Part of what this self custody allows is the ability to lend assets to protocols to be utilised by other defi users. On Binance Smart Chain our platform, Bigfoot, which is powered by Eleven.Finance, incentivises users to lend assets, that can then be used fore leveraged yield farming.
At the core of the Bigfoot platform is the Bigfoot Bank, users can stake their BNB inside of the Bigfoot Bank contract to receive an interest bearing BNB in return. This interest bearing BNB is known as bfBNB and is pegged at 1:1 with BNB at the time a lender lends BNB to the Bigfoot Bank. This bfBNB earns interest that is paid by borrowers of BNB from the Bigfoot Bank as they enter leveraged positions to optimise yield farming returns. For more details on the calculation of interest rates across the platform and how these are shared to lenders see here.
Last modified 1yr ago