Decentralised Finance for Beginners
Mon Feb 28 2022 01:00:00 GMT+0000 (Coordinated Universal Time)
Youves (pronounced You-vess) is a synthetic assets platform that gives us the opportunity to earn passive income in a number of ways depending on your risk appetite.
The concept behind Youves is simple even though the maths behind it looks complex. It is essentially a number of smart contracts that use the Tezos blockchain and the security and longevity that comes with it. The smart contracts have been audited and no critical issues were found.
You can use these smart contracts to:
- Provide capital to traders (passive income),
- Margin trade (active involvement - you need to manage your collateral if the price of Tezos goes down), and/or
- Share in the profits of the platform (passive income)
Why do people margin trade on Youves?
A few reasons:
- They can make a higher profit if the asset they buy goes up
- There is less reliance on trusting an exchange to not trade against them (because Youves does not hold funds on any exchange)
- They earn the governance token, YOU, which can be used to share in the profits of the platform
Setting up a Tezos DeFi wallet
Set up a Tezos wallet, either kukai.app website or the Temple Wallet browser extension (it's just like a Metamask wallet but for Tezos). These Tezos wallets are for your computer - you only need to use one, not both.
If you are more of a phone person, you can use these two Tezos wallets AirGap Wallet and AirGap Vault - you need both of these which can be found through either through their website or by searching the App or Play store.
But if you're putting in a large sum of money, reduce your stress by using a dedicated hardware crypto currency wallet - Ledger Nano S or Ledger Nano X. This wallet is set up by installing a Tezos wallet through an application on your computer or phone (Ledger Live) and the Ledger device works nicely with both Kukai and Temple so you can use it for Tezos DeFi projects like Youves.
As Youves is a relatively young venture (launched in July 2021), not many have discovered it yet and the market for uUSD is small. uUSD is the synthetic asset that tracks the value of a US dollar and you can see how well its tracked on the metrics page. There are other ways to acquire uUSD, for example through other Tezos decentralised exchanges like PlentyDefi.com (soon to be plenty.network), and QuipuSwap.com
Here is how to convert your Tezos to uUSD and put it in a savings contract that currently has a return of over 20%
Buy uUSD from QuipuSwap or PlentyDefi links above or use Temple Wallet Swap
Try not to buy more than $1,000 at a time, there is not a lot of liquidity yet
Choose TEZ and uUSD and put in the amount
Check how much slippage you're prepared to pay
Put your uUSD in the Youves savings smart contract
Near the bottom of the page look for the uUSD saving row:
With $1,000 uUSD savings, you would make around $207 per annum.
All savings contracts have a 6 week holding period before you can withdraw. During this time you earn no interest. Make sure you don't need the money for a while!
If you have any questions about youves jump into their Discord and say hi!
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