“Unlocking Liquidity: The Synergy of Velodrome Finance and Augusta Finance”
Velodrome Finance, crafted on the Optimism platform, offers a speedway to decentralized exchange and liquidity via its veVELO NFT reward mechanism. However, an issue arises when veVELO owners need liquid asset provisions without having to forfeit their beneficial veVELO NFTs.
Here’s where Augusta Finance comes in as a solution tailor-made for the Velodrome users. Augusta Finance has crafted a service that allows veVELO owners to use their NFTs as security to receive Ethereum (ETH) loans. This way, owners can access necessary liquidity while retaining the veVELO for voting and other gains.
A distinguishing attribute of Augusta is the collateralized loan model that permits NFT owners to leverage ETH loans, maintaining their receipt of veVELO perks. When the veVELO NFTs are pledged on Augusta, the platform momentarily acquires their benefits within the Velodrome network.
Furthermore, Augusta encourages individuals with dormant ETH to supply liquidity for the NFT loans, plying them with interest revenues and AUGU governance tokens as rewards.
Augusta Finance has also introduced its own AUGU token to offer users a chance to participate in platform governance. By holding AUGU tokens, users can stake them to receive proceeds from interest and gain profit allocation from the veVELO rewards that Augusta obtains from Velodrome.
This symbiotic association between Velodrome and Augusta finance ensures optimal asset distribution and efficient utilization of capital for all associated participants. This paired approach to governance serves to entrench user involvement in both platforms.
The significance of these platforms is that they ensure that users can participate fully in the decentralized finance (DeFi) space without sacrificing either liquidity or yield rewards, a true win-win for all participants.
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🌐 Website: https://www.augusta.finance/
🐦 Twitter: https://twitter.com/Augusta_finance
👾 Discord: https://discord.com/invite/augustafi
📗 Docs: https://augusta-finance.gitbook.io/augusta-finance/about/introducing-augusta
