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DeFi Taxonomy & ZaynFi's Yield Approach
Yield generation in Decentralized Finance (DeFi) can be broken down into several categories, namely;
- 1.Proof-of-Stake Collator Staking
- 2.Lending & Borrowing
- 3.Decentralized Exchange (DEX) Liquidity Provisioning
When you make a deposit into ZaynFi's vaults, your deposits are then routed to Liquidity Pools at top Decentralized Exchanges (DEXs) on BSC.
Your deposits are used to facilitate trading on the DEX, where you are then rewarded with a share of the trading fees resulting from the trades made possible by your deposits & additional reward tokens provided by the DEX.
ZaynFi goes a step further by auto-compounding the rewards you receive. We automatically sell the tokens received as rewards from the DEX and deposit it into the Liquidity Pool for you. This way, your capital invested will continue to grow and you get more trading fees (because you have a bigger share of the Liquidity Pool) and more rewards.