What is DeFi?
Why we like it
DeFi has been a game changer for Banfield Group. Lending, borrowing, churning & earning. In the eyes of the traditional banking system, we're the bad boys who bet. In the decentralized world, we're entrepreneurs putting our assets to work. Many of you have reached out and asked how to get involved with decentralized finance. The following are steps that we've used to take advantage of this brilliant new technology. **WARNING** All this tech is VERY new. To date, we have yet to be "rugged" (losing all your funds). However, similar to a global pandemic, it can happen at any given moment. We STRONGLY advise experimenting with funds that you can afford to lose.
Acquire a Ledger
First and foremost, get yourself a Ledger here. The Ledger essentially becomes the gateway to your crypto bank account. We recommend the Nano X because it has more storage.
Once received, follow the setup steps and make sure you store your 24-word pneumonic phrase safely OFFLINE. That means no words docs, no pictures of it, 100% OFFLINE.
Use Firefox browser. Works best with all this stuff.
Get Metamask extension
Download Metamask browser extension here.
Setup Metamask wallet. That means you will get another 12-24 pneumonic phrase. Write it down (OFFLINE) and keep it safe. Your Metamask wallet is a HOT wallet. Hot wallets are less secure than your Ledger wallet. NEVER keep large amounts of funds in a Hot wallet.
In Metamask click that multi-colour circle in the top right corner.
Scroll down and click "Connect Hardware Wallet" (this is where you connect your Ledger to Metamask)
Add additional Networks to Metamask
At the time of writing, the cost of doing business on the Ethereum network REALLY sucks (very high transaction fees). As a result, we currently do majority of our playing on the Polygon & Avalanche networks.
Steps to add the Polygon network to Metamask are here.
Steps to add the Avalanche network to Metamask are here.
Acquire Stable coins
Once your networks are setup, you need to acquire stable coins (1 Stable Coin is always = 1 USD). Currently, the most popular stable coins are USDC, DAI & USDT.
Acquiring stable coins can be done at any major exchange. We prefer using a Decentralized Exchange like Quickswap. Why? Trades are cheap and basically instant on Decentralized exchanges.
Move your stable coins to whichever Network you need to
If you need to transfer stable coins from one network to another, use the C-Bridge.
If you've gotten this far, way to go! Here are the DeFi protocols we're currently using.
Banfield Group on Polygon Network
We deposit stable coins into the protocol.
The protocol swaps & saves our stable coins into imUSD.
We then click the "Stake" tab in the protocol
Lock your funds
Stake your funds
At this point, you should see that you're earning twice! Yield paid in USD + mStable's native token called MTA.
We let the MTA accumulate then swap when the price is right at Balancer
Again, Balancer is a DEX (decentralized exchange) so you can swap your MTA into whatever you want.
Banfield Group on Avalanche Network
"Explore" tab shows all the different single asset vaults that are available.
We deposit into the vault and watch our assets earn.
We're currently involved with a few different vaults that are on the Banker Joe & Benqi platforms.
Earnings on Yield Yak are paid in whatever you deposit into. Example: Earn ETH if you deposit into the ETH vault.
**WARNING** All this tech is VERY new. To date, we have yet to be "rugged" (losing all your funds). However, similar to a global pandemic, it can happen at any given moment. We STRONGLY advise experimenting with funds that you can afford to lose.