Learn the basics of DeFi with Valora!

TL;DR

• A beginner's guide to how you can use Valora to easily learn the basics of  Decentralized Finance (DeFi). 

• With many opportunities across DeFi, Valora is your all-in-one place to start exploring:

• Decentralized exchanges like Uniswap and Mento 

• Lending and borrowing platforms like Moola (where you can earn supercharge rewards!)

• Liquidity mining opportunities on Uniswap 

• Staking on StakedCelo 

Learn the basics of DeFi with Valora!

Decentralized Finance (DeFi) offers incredible opportunities for people all over the world. 

While DeFi is a bit complicated for new people, Valora makes navigating the ecosystem of DeFi applications easier. 

In this article, we'll explore key DeFi opportunities you can enjoy on Valora, such as:

• Decentralized Exchanges (DEXes)

• Borrowing/Lending 

• Liquidity Mining

• Staking

• & more! 

Learn about DeFi

DeFi, or Decentralized Finance, describes the ecosystem of blockchain-based financial services. These include lending, borrowing, trading, liquidity mining, staking, and more. 

Your Valora wallet acts as a gateway to all these DeFi opportunities on the Celo blockchain.

Whether you're interested in trading, lending, borrowing, or earning through liquidity mining, Celo's DeFi ecosystem has a range of opportunities for you to explore. 

So why wait? Dive in and begin using DeFi with Valora.

Here’s how you can get started: 

Explore DeFi with decentralized exchanges (DEXes)

Decentralized exchanges (DEXs) are trading platforms that allow users to trade cryptocurrencies directly, without relying on a centralized intermediary for the custody of assets.

Unlike traditional centralized exchanges that act as intermediaries and hold users’ funds, DEXs enable transactions to occur directly between users via smart contracts. This allows for better security, privacy, and self-custody.

They also offer users lower trading fees and potentially more liquidity than the many popular centralized exchanges. Here are two of our favorite picks:

Uniswap

Uniswap is a leading decentralized exchange. It allows for automated transactions between cryptocurrency pairs. 

If you're holding Celo assets like cUSD or cEUR, you can use Uniswap to trade them for other tokens and explore other DeFi dapps. 

This platform also offers many great features, including the ability to participate in DeFi and earn fees for providing liquidity, which you can read more about here. 

Mento

Mento is a Celo-native stablecoin protocol that creates stable assets to help improve financial inclusivity.

These assets are stablecoins that include cUSD, cEUR, and cREAL that are pegged to fiat currencies like the U.S. Dollar, the Euro, and the Brazilian Real, respectively.

These stablecoins are backed by a diversified portfolio of cryptocurrencies held in the Mento Reserve to keep their values pegged to their respective fiat counterparts.

You can use these stablecoins to earn interest, stake, or participate in other DeFi protocols like Curve, Uniswap, and Moola Market. 

Try out lending and borrowing crypto 

Crypto lending and borrowing platforms allow users to loan out their digital assets in exchange for interest, or borrow assets by providing collateral. Instead of relying on central authorities to hold custody of the funds, these platforms are decentralized and rely on smart contracts to secure transactions. 

Their smart contracts are self-executing programs that contain the terms of the loan, including all the interest rates and repayment schedules. This removes the need for a middleman as all these elements of borrowing/lending are configured and executed by the smart contract. 

Moola is a leading DeFi borrowing and lending protocol on the Celo blockchain that democratizes access to credit and yield for users.

 The platform offers an effortless way to lend and earn interest on your digital assets like CELO, cUSD, cEUR, and cREAL.

You can convert your regular stablecoins, such as cUSD, to Moola's stablecoins like mCUSD. By doing so, you can not only earn interest through Moola but also continue to receive your 7% annual Supercharge rewards*.

 This means two streams of bonus crypto for one stablecoin holding!

[Note: Supercharge Rewards - Earn a 7% annual reward by maintaining stablecoin balances in Valora. Swap Celo tokens into cUSD and claim weekly rewards, all while preserving the reliability of a fiat-backed stablecoin with Mento.]

Liquidity mining to earn rewards 

Liquidity mining is providing assets to a decentralized exchange's liquidity pool. This common DeFi use case enables users to earn rewards by depositing their tokens into a pool of crypto assets to be used for trading. 

Rewards for Liquidity mining are in the form of reward tokens, and they incentivize users to contribute liquidity to the pool. It’s a win-win for both the users and the exchange, since the exchange has more liquidity for trading and users earn rewards for their contribution.

By becoming a liquidity provider, you can deposit an equivalent value of two tokens into a liquidity pool and earn rewards from trading fees. One of the most popular platforms to do this is Uniswap in Valora.

You may also stake these LP (liquidity-providing) tokens in various other DeFi protocols to earn additional rewards, effectively maximizing your earnings across multiple streams.

One platform that enables you to do this is one we recently featured called Double, which is accessible through the Valora app.

Staking via Staked Celo

Staking is a strategy where users stake their digital assets to earn rewards for locking up their tokens.  

StakedCelo is a Celo-native staking protocol developed by cLabs. The platform allows Valora users to stake CELO, support the network, and receive rewards from staking. 

At the same time, it can keep these assets liquid so you may use them to participate in other DeFi applications. This feature of keeping assets liquid creates an intriguing opportunity for staking within the DeFi ecosystem.

Connecting to StakedCelo, staking your assets, and earning rewards is as easy as scanning a QR code through your Valora wallet.  

Get started, explore DeFi with Valora, and earn rewards today!

From swapping tokens on DEXes like Uniswap and Mento, to lending and borrowing on platforms like Moola, the DeFi opportunities with Valora are endless.

Whether you’re brand new to crypto or just exploring, Valora offers a great all-in-one place to start exploring DeFi.  

Wondering where to get started? Read more about 4 free things all new Valora users should do, or explore our list of the 5 must-use dapps on Valora to get your DeFi journey started.

*Disclaimer: As of February 13, 2024, Valora offers 7% annual rewards on qualifying Celo stablecoins. This change will be applied to new and existing Supercharge accounts with the minimum required balance - effective immediately. 

Supercharge rewards will continue to be paid out weekly. Remember to claim your Supercharge rewards every week in your Valora wallet.