Huobi Korea Virtual Asset Research Institute releases DeFi MDX analysis data
Huobi Korea (CEO: Park Si-deok), a global virtual asset exchange, released analysis data on MDEX, which is recently launching a new DeFi liquidity product on the 7th at the Virtual Asset Research Institute.
MDEX is a decentralized exchange (DEX) operated based on HECO. Hecochain (HECO) is a blockchain technology optimized for DeFi financial products developed by Huobi Global, and is characterized by high speed and low fees when transferring virtual assets.
MDEX’s DeFi product is a’Yield Farming’ method, and if two virtual assets are deposited at a 1:1 ratio, MDX tokens or Huobi will be rewarded for providing liquidity to the pool (combination). Tokens (HT) are paid. In other words, if you deposit two virtual assets with the same percentage amount, you will receive a virtual asset token with interest. In addition, interest income can be checked in real time and can be converted into cash immediately when desired.
※ Yield Farming: In terms of virtual assets, it is easy to understand that supplying liquidity to DeFi products and receiving rewards is the same as interest farming.
Virtual asset combinations are referred to as’liquidity pairs’, and there are dozens of types of them. The annual rate of return (APY) to be compensated for deposits for each pair is different, but the difference is large, ranging from as little as 10% to as much as 500%.
※ Liquidity: As a term for virtual assets, it is used as an act that enables transactions to be activated by directly supplying virtual assets to the DeFi market without a central bank.
In the case of a pair with a low return, it is possible to invest and operate in a relatively stable manner, mainly for stable coins such as Tether (USDT). However, in the case of high-yield pairs, unlisted virtual assets are mainly used, and there is a risk of principal loss due to severe price volatility.
The pair that showed the most monthly trading volume in MDEX is MDX Token and Tether (USDT). The 6-day return is 114%, which is 30 times higher than the commercial bank interest. When depositing an MDX-USDT pair, you can receive MDX tokens in real time as much as the deposit amount. In the case of the yield, the total amount of the pair deposited or the MDX-USDT trading volume varies. In addition, after selling MDX tokens received as interest from Huobi Korea as Tether (USDT), they can be converted into cash in the KRW market.
Choi Jin-young, an analyst at Huobi Korea’s Virtual Asset Research Institute, said, “As the virtual asset market volatility has increased recently, more and more investors are investing in DeFi Coin to obtain interest income.” Because there is, you need to be careful when investing.” He said.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.