Nimbus Platform Launches With Several Ways to Make Money Amidst DeFi Boom

Nimbus Platform Launches With Several Ways to Make Money Amidst DeFi Boom

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

If there is any part of the blockchain ecosystem that has become popular in the last few years, it is the decentralized finance (DeFi) sector. The reason for this is that DeFi successfully offers many of the products and services offered by the traditional financial system but does so with greater privacy, flexibility, and lower costs for users. 

The result of this has been billions of dollars locked on DeFi platforms in the last two years and more innovative DeFi platforms popping up, especially those that allow users to earn an income on their initial investment. One of the latest of these is Nimbus, which is a DAO-governed ecosystem of dApps that provide a number of income-generating streams and is geared towards creating a decentralized bank for users. 

How Nimbus Works 

For users to gain access to Nimbus’ features, they first need to open a wallet address with Metamask, WalletConnect, Coinbase Wallet, Fortmatic, or Portis. Once this is done, the wallet will need to be connected to the Nimbus platform and then be used to store any of NImbus’ two native tokens: NBU or GNBU which they will need to conduct transactions. 

The process of acquiring any of the native tokens will see users making use of Nimbus’ swap machine, which is one of its top features. Through the swap machine, users can trade major tokens like BNB or ETH for NBU or GNBU and this will require authentication on both platforms and the payment of a transaction fee. After the swap has been completed, users can then use their NBU or GNBU to conduct a number of transactions on the Nimbus ecosystem. 

First, there is the option to lock up their tokens in liquidity pools and gain interest. To do this, users need to commit to locking away their tokens in one of the available liquidity pools and the interest that they will receive is based on a number of factors, including the number of tokens to be locked away and the pool share. The liquidity pairs currently available to Nimbus users are BNB/NBU with 100%/year yield; GNBU/NBU with 100%/year yield.

When payments are made in the form of the LP tokens, they can be locked away once again to provide liquidity to the network and to earn interest for the holders. 

Liquidity provision is not the only way to earn interest with Nimbus as there is also the option to stake tokens. The difference between the two is that staking requires the tokens to be put away for a predetermined amount of time and depending on the type of staking chosen, the user may or may not be able to withdraw it before the time period. In the case of soft staking, they may withdraw the tokens whenever they wish but in the case of hard staking, the money cannot be removed before the maturation period, which might be 60, 90, or 180 days. 

The Many dApps on Nimbus 

Besides the ability to stake and hold tokens in liquidity pools, NImbus also has a number of decentralized applications that offer a world of features to users.  One of these is a P2P platform through which users can trade tokens without any intermediary, KYC requirements, or any fees charged. Users only need to create a listing with the details of the tokens they wish to buy or sell and the amount. When another user responds to their listing, the smart contract executes the trade instantly. 

Users can also lend their tokens to others through Nimbus’ lending protocol. This works by users putting their tokens in a liquidity pool and once other users begin borrowing from that pool, interest is collected and paid out to those who contributed to the pool, according to how much they contributed minus a  0.3% interest that is collected by the Nimbus protocol. 

The difference between this sort of lending and that of traditional banking is that those who lock their tokens in a liquidity pool only receive interest once someone borrows from their pool while traditional banking begins to pay out interest immediately. Additionally, all transactions are carried out using a smart contract. 

Borrowing can also be done through the Nimbus protocol, with users needing to lock 150% of the amount that they intend to borrow with a smart contract to ensure that the loan will be paid back. Because Nimbus is a  DAO (Decentralized Autonomous Organization), all decisions regarding its ecosystem are carried out by voting and can only be made by those who hold at least 1% of the GNBU in circulation. 

Finally, Nimbs offers an unwrap machine that allows users to transfer Nimbus tokens (NBU and GNBU) from one network to another, such as the Binance Smart Chain to enjoy lower gas fees. 

Conclusion 

The DeFi space is constantly evolving and offering new products and Nimbus is at the forefront of this. By leveraging DeFi and smart contracts to offer such innovative dApps, Nimbus is leading the way in offering income-generation options to users and seems to only be getting started.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

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