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bravo-kernel/4x-ada-yield-streams-ELI5.md

Last active October 31, 2021 13:55
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4x ADA yield streams (ELI5)
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4x-ada-yield-streams-ELI5.md

4x ADA Yield Streams (ELI5)

  • update and verify yield fields
  • update and verify revenue fields
  • update and verify risk

1. Stake ADA

Default ADA staking as provided by Cardano. Optional and not related to, nor required for, any of the Liqwid examples below.

  • Yields: ADA
  • Revenue: 5%
  • How: delegate to one of the Cardano SPOs using Daedalus or Yoroi
  • Risk: risk-free

2. Lend ADA

Lend/deposit ADA assets to Liqwid to become a Liqwid lender. For every 1 ADA you will receive 1 qADA. The value of qADA rises as borrowers pay back interest on their loan over time. This rise in value can be redeemed by trading back qADA for ADA.

  • Yields: qADA
  • Revenue: variable APY per epoch based on protocol generated revenue
  • How: use the Liqwid app (once it becomes available)
  • Risk: t.b.d. (awaiting security audits)

3. Stake qADA

Stake qADA received during above step

  • Yields: LQ
  • Revenue: variable APY per epoch based on protocol generated revenue
  • How: use the Liqwid app (once it becomes available)
  • Risk: t.b.d. (awaiting security audits)

4. Stake LQ

Stake LQ yielded by above step.

  • Yields: asset deposited (ADA)
  • Revenue: % of borrower interest repaid
  • How: use the Liqwid app (once it becomes available)
  • Risk: t.b.d. (awaiting security audits)
@bravo-kernel
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bravo-kernel commented Oct 30, 2021 •
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I think the four website bullets would be greatly enhanced by taking above information and adding it as a second column like shown below:

image

Unless I am mistaking and not seeing some dangers.. all steps are no-brainers. Why would one not do it?

@pmburu89
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This is amazing and is easily digestable to even the most novice investors in crypto.

@pmburu89
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We should also take time to define some of the potential risks in staking qAda and staking LQ. Just putting not risk-free might scare people off since they would not know what kind of risks there are.

@bravo-kernel
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@pmburu89 thanks, exactly who this is targeting... novice investors.

Hope I can get some help in filling in the revenue and risk fields.

@bravo-kernel
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Final suggestion for the website, something like this:

image

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