Flux Protocol DeFi Strategies -Part 1

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Earning Rewards while Earning Interest….

Being able to leverage your assets without selling them is a powerful tool that Defi brings to crypto traders. What is even more powerful is the ability to do this with Zero Gas fees and fast transaction confirmations! This is possible with Flux Protocol on the Conflux Network. Two tokens that we will focus on today is FC and CFX. FC-Fanscoin is the Conflux on-chain community token while CFX is the native token on the Conflux blockchain. In this article, we will discuss two types of strategies:

  • Supplying assets on Flux and earn APY%
  1. Supplying assets on Flux and earn APY%

When supply rates are high, this is a great opportunity to earn interest on your assets! Remember, Flux benefits from 0 gas transactions and doesn’t have additional fees for borrowing assets. This makes Flux the perfect place to leverage your tokens and increase your earnings. In the figure below, we are able to supply cUSDC into Flux and earn 90% APY! This is a safe way to hold a stable asset while earning high interest rate. How great is that?!

2. Borrowing and Adding Liquidity On Moonswap

When you find two assets that have a close correlation, this strategy can be very useful. For a while, CFX and FC had this relationship and provided a great opportunity to provide liquidity while minimizing impermanent loss. Let’s say we already hold FC token but need CFX to provide liquidity on Moonswap. We will borrow CFX from our 100 cUSDC that we previously supplied to Flux.

Here’s an example of borrowing 50 CFX tokens:

In the borrowing bar on the right side of the FLUX home page, find CFX and click “borrow”, enter the quantity in the pop-up dialog box, and click “borrow”.

After authorization, the loan is successful.

Now that we have FC and CFX, it’s time to add liquidity on Moonswap!

Find the CFX / FC trading pair and click the “add liquidity” button

We paired the borrowed CFX with our owned FC to make CFX/FC LP tokens

Ensure that your token pairings are correct and that you will receive Liquidity Pool Tokens. Click the “Confirm Supply” button and “Confirm” the transaction

In this example, our 50 CFX and 13.5 FC tokens gave us 25.47 MLP tokens

The next step is to start mining with our newly minted Liquidity Pool Tokens. Go to the “Farms” tab on Moonswap and Find the CFX / FC trading pair and click the “Approve MLP” button

If this is your first time to participating in the LP pair mining, you need to authorize Moonswap to access your MLP tokens

After the authorization is completed, Click the “stake” button on the right on the “Farms” page

Enter the number of tokens, or click the “maximum” button next to it, then click “Confirm Stake”

After authorization, we can see that 25.4709 tokens have been deposited and mining has begun!

Congratulations!!! You have successfully staked/borrowed assets on Flux while providing liquidity on Moonswap. Try out different pairs and earn LP rewards while earning APY on your assets!!

Questions about how Flux works? Join our Discord or check out our platform overview here

If you need to transfer assets from other blockchains using Shuttleflow check here!

Flux Protocol is a borderless lending protocol, where low transaction fees and cross-chain interoperability are the reality