DeFi has been growing with new projects coming along almost everyday to give DeFi users more options when looking for passive income in crypto.
One of the platforms that has just been launched and is currently attracting DeFi investors is Strike Finance, also known as Strike, with its token called STRK.
The similarities of the name STRK with StarkNet that just did an airdrop, has also propelled Strike’s popularity pumping its price higher than most DeFi tokens.
What is Strike?
Strike is a decentralized finance or DeFi platform that can be used for multiple purposes in the DeFi ecosystem.
This includes staking, lending, borrowing, and some new innovations including NFT or Non Fungible Token staking, directly on the Strike platform.
Strike also has its own DAO or Decentralized Autonomous Organization to ensure that decentralization is kept in the operation of its platform.
Strike has its token called STRK which has been impacted by the recent bullish movement in crypto and has given its holders huge gains in the range of 30% until today.
The key selling point of Strike is that it is fully decentralized, meaning there are no central entities controlling the platform.
This makes users entitled to manage the longevity of the platform, including liquidating positions of other users which seems risky and on the verge of defaulting.
Another key selling point is the NFT staking which we will be talking about more one by one on the explanations of its features.
5 Features of Strike Finance
There are five main features of Strike Finance which can be accessed by connecting your decentralized wallet to the platform.
Note that it is an EVM based platform so most wallets that can be used are the ones that are compatible with EVM blockchains, such as Metamask.
Lending and Borrowing
The first one is the lending and borrowing feature which lets users lend or supply and borrow EVM based cryptocurrencies on the platforms.
There are a lot to choose from, including some liquid staking derivatives tokens which are wstETH and rETH.
Currently the highest APY or return per year is held by the STRK token itself giving investors a floating return per year of 59.55% and a borrowing rate of 34.49%.
This is uncommon as usually the borrowing rate is higher than the lending rate to keep the platform safe and far from default.
But it seems that everything is counterbalanced because other cryptocurrencies have lower lending rates than their borrowing rates.
The platform’s current supply or lending volume is standing at around $58.7 Million, which is relatively low compared to other prominent DeFi platforms, but is considered well because of the fact that it is still new.
Conversely the borrowing volume currently stands at $35.6 Million which is lower than its lending rate, giving potential risks of the platform not being able to pay its lenders if the ratio continues to diverge far.
Liquidator
Luckily there is a liquidator feature where users can liquidate other user's positions in order to keep the safeness of the platform.
This liquidator feature lets users liquidate someone else’s borrowing position before the default rate increases in order to help the platform manually keep the default rate low.
Users who do this will get rewarded a small percentage of the liquidation fee that is charged towards the holder of the borrowing position.
DAO
Strike also has its own DAO to communicate between users and agree on new proposals that are being sent out by the Strike Finance team or by other users in the Strike community.
There are already more than 50 proposals being discussed, rejected, and agreed on in the DAO, so even though the DAO is still new, it has already been working well.
The DAO itself is one of the things that keeps decentralization alive on Strike Finance to ensure that the platform stays true to its crypto nature.
Staking
Regarding STRK, there is a special staking feature for the token, where all the holders of STRK can stake their token on the platform.
There are currently $1,5 Million worth of STRK being staked and locked on the platform with a 4% return per year from its locking mechanism and vesting mechanism.
To use this platform, users only need to own STRK and lock it in the platform by inputting how much STRK users want to lock and confirming the transactions on the wallet.
DeFi Vault
Last is the DeFi Vault which is one of the selling points of Strike Finance. The platform named the feature as DeFi Vault 3.0 to make it more futuristic.
The platform currently lets users stake a pair of STRK and ETH with a prime APR or a maximum return per year of around 60%, which is huge compared to other platforms.
There is also an NFT staking pool for users to stake specific NFTs that are allowed to be staked on the Strike Finance NFT Staking feature.
Conclusion
Overall the platform is similar to most DeFi platform, but what sets it apart is the NFT staking feature and the currently high yields, especially regarding its own token.
If you want to use this platform, make sure that you are using a decentralized wallet that is compatible with an Ethereum Blockchain and its layer two blockchains or a BNB Chain wallet, previously known as the Binance Smart Chain.
Official Website
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register
Disclaimer:
The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.