TL;DR
- What is passive income and why is it so important?
- What role can stNEAR play in earning passive income?
- How can you use Meta Pool to earn a high APY with our partners on NEAR
Overview
Part of Meta Pool’s key goals are to expand the user base of NEAR protocol, but also crypto users more generally. For anyone who is new to crypto, and interested in earning passive income through rewards, this article will provide a brief summary of the ways you can earn through decentralized finance (DeFi).
This introduction to earning passive income through Meta Pool is designed to help you understand the benefits of DeFi, the importance of using stNEAR to increase rewards, and outline some of the most popular strategies people are using to earn.
The Benefits of Passive Income
As most of you already know, passive income is any source of revenue which is generated passively without you having to actively work for it. Crypto, and more specifically DeFi, has changed the momentum of global finance.
Traditionally, to earn any kind of effective passive income, an individual had to have a large sum of capital to access to financial markets that make those kinds of investments possible. However, with DeFi protocols like Meta Pool, regular people are finding more and more that they too can make their money work for them.
Passive Income with stNEAR
Blockchain technology now allows us to build a truly democratized and decentralized financial system that allows for the type of financial freedom for regular people that we have been talking about. For more information on the value of stNEAR check out this article!
Metapool is a liquid staking platform built on the NEAR blockchain that not only allows you to earn interest on your NEAR tokens (typically about 10 percent) but simultaneously gives you stNEAR which you can use on other Defi projects to earn additional passive income for yourself.
NEAR protocol is a proof-of-stake (PoS) protocol. This means that any user who chooses to stake their tokens is rewarded with a ~10% APY (annual percentage yield). When staking on NEAR, users have to lock their tokens until they want to withdraw them, which takes ~48-72 hours.
One of the most powerful benefits of having Meta Pool as a liquid staking solution on NEAR is that capital becomes freely available in the market. Instead of locking your tokens, Meta Pool lets you earn staking rewards but also keep your capital. We do this by exchanging your NEAR for stNEAR when you stake with us. You can use your stNEAR freely to earn even more reward (on top of the 10% you’re already making).
Passive Income Through Yield Farming
Lending
stNear is a unique yield-bearing asset you can use as a collateral with many other financial applications. You can lend it out, you can use it to provide liquidity, you can even borrow more assets against it, thereby leveraging your financial positions and increasing your income potential! We’ll explore some of the best ways to use your stNEAR.
Platforms like Burrow, Aurigami, and Bastion are designed for lending crypto between users. Each of these platforms have dedicated users that have deposited tens of millions of dollars. This is one of the relatively low-risk but stable methods of leveraging your assets. To take it even further, you can now borrow against your deposited assets and leverage your yields even further. This creates a “Degen loop” of lending and borrowing several times over, and while this strategy can be incredibly risky (always DYOR) it can also be very lucrative with little to no work.
Providing Liquidity
You can also supply your stNEAR assets in Liquidity pools on finance protocols such as Ref Finance and OIN Finance, as well as on exchanges and market makers like Trisolaris and WannaSwap and Tonic. Liquidity pools are the cornerstone of the DeFi industry on the backend and work by providing liquidity to front-end users like traders, lenders and borrowers. These pools collect transaction fees from the users and reward the liquidity providers supplying to the liquidity pools.
When a user provides stNEAR to a pool listed on a platform like Ref, the reward is typically between 10-50% (depending on the pool and the stability of the asset in the pool). When using stNEAR, you are already earning a 10% reward, which is added to the reward you get from lending, farming, or providing liquidity. This is how Meta Pool supercharges your ability to earn passive income through DeFi!
For more information and a step-by-step guide on how to get stNEAR, follow our blog or click here. You can also follow us on our socials to ask our team questions and get personalized help on your journey to earning passive income!
About Meta Pool & stNEAR
Meta Pool is the leading liquid staking solution for $NEAR and wNEAR token holders. With Meta Pool you earn NEAR staking rewards and maintain your liquidity to participate in DeFi protocols on NEAR and Aurora.
Users staking $NEAR and wNEAR with Meta Pool receive in exchange stNEAR (staked NEAR) tokens.
stNEAR simultaneously accrues staking rewards and unlocks users’ liquidity enabling them to participate in DeFi activities (e.g. lending, farming, borrowing) on NEAR and Aurora.
Stake $NEAR on Meta Pool
~11% APY
Get stNEAR
Yield-bearing token
Go DeFi on NEAR & Aurora
More APY and more rewards
Meta Pool also solves the problems associated with Proof-of-Stake networks staking: illiquidity, immovability and accessibility. Meta Pool also aims to distribute staking in multiple validators to improve censorship-resistance of the NEAR network.
With a TVL of ~9 Million $NEAR and growing, Meta Pool has become in just a few months a cornerstone element of the NEAR ecosystem. Meta Pool is making NEAR Protocol more decentralized and therefore more secure.
In February 2022 Meta Pool has been successfully audited by BlockSec, confirming the implementation of the highest security standards.
For more information visit https://metapool.app.
Join Meta Pool & stNEAR Community
If you have any questions or wish to be part of our project, don’t hesitate to join our official platforms and reach out to the team!
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