Zero Knowledge To Understanding DeFi Via CubFinance In 30 Minutes

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Dipping My Toes In

Decentralised Finance or DeFi has always been something that totally bamboozled me and it's felt understanding it has been the last task I'd need to complete before graduating from crypto school! Thanks to LeoFinance rolling out its new CubFinance and announcing it in yesterday's post, I was very much looking forward to dipping my toes in the water. They referenced their full FAQ and guides at least 3 times in that post as that's where all the answers lie. Before you ask any questions, thoroughly examine the document below:

https://docs.cubdefi.com/

As someone who's had to write technical documentation, how-to guides and instructions many times, I can say that this is a top notch, comprehensive set of instructions that anyone can follow.

30 Minutes

That's all it took from knowing nothing to getting set up and earning yield from following the step-by-step instructions above. You will need the following (which is detailed in the docs):

  • Metamask wallet browser extension
  • Keychain browser extension
  • BNB (which you can buy on Binance exchange)
  • Unstaked LEO in your Leo wallet (which you can buy on Hive-Engine)

What Is DeFi?

Decentralised Finance is exactly how it sounds. Finances without a centralised authority, institution or company overseeing the transactions within the system. Instead, it's the underlying blockchain technology that cuts out the middle man (centralised authority) and the individuals in the system provide the market themselves. This means that the individuals also need to provide liquidity where they allocate a portion of their staked tokens as liquid for others to buy and trade, instead of having a centralised exchange like Binance or Coinbase etc doing it.

Liquidity Pools

Providing liquidity in what are called "Liquidity Pools", often means that you will see insane yields (or interest rates) for providing tokens to the network in this way. This is because there's no middle man taking their cut and giving out peanuts like what we're used to in the traditional system. Currently, after 24 hours, the APR for providing liquidity in the BNB-LEO pool is sitting at a whopping 11,100%! How long that will last is anyone's guess but you will not see APR as low as what we're getting in UK at next to 0%, that's for sure!

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My understanding is that the yield comes from taking a cut of the transaction fees that occur when someone buys/swaps LEO or BNB but could be wrong about that. All I know is I followed the step by step, and within 30 minutes, I was good to go! In fact, the one thing that took the longest was ironically BNB withdrawal from Binance to my Metamask wallet!

RTFM (Google It)

That link again to all you need to know to get set up if you wanted to get your feet wet with DeFi:

https://docs.cubdefi.com/

Thanks to Leo for giving those of us with a smaller budget the chance to get involved with DeFi. I think I'm a convert now!

Have any of you got involved with this yet? How have you got on so far? Let me know in the comments below!

See you by the pool!

Nicky

I'm not a financial advisor and this isn't financial advice. Always speak to a professional financial advisor if you're unsure about how to invest your money

Posted Using LeoFinance Beta



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32 comments
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Great from yesterday I have gathered lots of information and I am so exciting about that Learning more and more.

Posted Using LeoFinance Beta

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I can only share my experience so far but they made DeFi so easy to navigate and the best way of learning is just be trying it out. Keep those instructions handy for when you take the plunge - it's exciting and powerful stuff!

Posted Using LeoFinance Beta

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(Edited)

The fact that you were able to get going quickly, is a good sign for the rest of us. I too, had been flummoxed by all of this DeFi stuff and never took the time to look into it.

I had heard Binance was banned to users in the US, so didn't bother looking into this.

30 minutes? That's great and it means this is accessible to anyone. Thanks for the write-up!

Posted Using LeoFinance Beta

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I know man, the whole DeFi craze, when it was solely on ETH seemed to rule out those of us with a low budget but damn, it's a lot more accessible now and we almost have a "free hit" with CubFinance. Have to say, it's pretty powerful when you experience it first hand.

That sucks about Binance! I thought there was a BinanceUS version? I don't know if there's another way to get BNB - I hope you are able to dip your toes in!

Posted Using LeoFinance Beta

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As far as I can tell the Binance.us is a problem. There may be other ways but I used Trust wallet to get BNB and BUSD to MetaMask. I am pretty small time and I am up and running. Made $40 while sleeping last night. ;)

Posted Using LeoFinance Beta

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Love it! Nothing like waking up with a little more moolah!

Posted Using LeoFinance Beta

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Sadly, I probably lost most of that trying to resupply MetaMask with BNB/BUSD. I am receiving an education though in ERC20, BEP20, BEP2 tokens and trying to swap and exchange them all. ;)

Posted Using LeoFinance Beta

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Lol! I am also having that education - trying not to claim too many times and incur a load of fees - I think when the cub airdrop happens, I'll just let the whole thing do its thing for a few months and see where we're at!

Posted Using LeoFinance Beta

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trying not to claim too many times and incur a load of fees

But it is so much fun to press all the shiny new buttons. I'm like a kid at Christmas!

Posted Using LeoFinance Beta

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Hahaha! I know, must resist the temptation to click all these buttons! 😆

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There will be more than 9 this week...
posts...

:D

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I might give it a go, there's so much going on these days. Compare it to 2 years ago.., it was all dead.

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It's worthwhile just to understand DeFi at a low cost - once I did it, it's pretty empowering - only talking small amounts but damn, it all adds up! Back from the dead!

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I'm probably not going to join in this one. Seems like a steep learning curve for me and I don't have liquid LEO or a Binance account or much spare time. I might just focus on continuing to stake LEO and wait for Project Blank.

Posted Using LeoFinance Beta

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Sounds like you've listed 3 very good reasons there haha! I just wanted to try it out and see what it's about with a low cost barrier to get in so can see the allure. It will probably be my only foray in to DeFi but nothing wrong with staking! I'll be looking forward to the LeoFi product when that's released and earn some tokens from leasing LP out. Keep the stake, earn some interest

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Keep the stake, earn some interest

Sounds good.

There's just too much going on for me to keep up at the moment. Too much time in front of the computer screen.

Just need to keep telling myself there will be plenty of other opportunities. 😊

Posted Using LeoFinance Beta

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Yeah I hear you on that - get that crypto-life balance - there's opportunities everywhere but your health always comes first :)

Posted Using LeoFinance Beta

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Umm, reading the comments, and not having a Binance account, I think, low budget notwithstanding, I'm out...

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Alright, it's up to you, it's not compulsory - I'm a mere blogger, sharing my experience 😃

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I have played with it a little bit, but I feel like I am still too small for it to really make much of an impact. The rewards are really just trickling in. Then you read about people who are pulling in hundreds of cubs an hour and it makes you realize just how unprepared you are. I have a feeling I will not be doing as much with this as I had hoped.

Posted Using LeoFinance Beta

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Lol, yeah, I think I'll just use it as a play thing to get familiar with DeFi but if it nets some pocket change, not going to complain about it! Damn, those folks are smashing it - I know there's a few that put in tens of thousands so you can do the maths on 10k % APR on those... eye watering. Here I am, happy with 1 CUB in 24 hours lol!

Slow and steady wins the race for us Mr Bozz!

Posted Using LeoFinance Beta

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Yeah, for sure. It actually makes me feel good to know that there are some others in the same boat as me. I was afraid for a second there I was just doing something wrong! I just picked up some of those Liotes Miners this morning, so maybe that will pay off for me.

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Oh nice one - yeah I heard about the Liotus, picked up some as well but haven't had a chance to read up on the project yet - looks like it is a new game coming to HIVE? I just don't have the resource to be involved in so many projects, HIVE will keep you busy for a lifetime haha!

Posted Using LeoFinance Beta

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Yeah, I hear you! I know they have a whitepaper but I haven't looked at it yet. This is the first I am hearing about a game.

Posted Using LeoFinance Beta

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I too have written work instructions. Mostly for the aerospace industry and this documentation was excellent in helping me get set up and going. One thing I did have a problem with was the Binance to MetaMask. Being a US resident and using Binance.us getting BNB over to MetaMask was problematic for me. I was finally able to use Trust Wallet and get some BNB and BUSD into MetaMask. I will probably learn more about everything going forward but it gave me confidence that I could find a way to make things work when I hit a road block. Kind of like my old job. LOL!

Posted Using LeoFinance Beta

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Sorry to hear there were issues with the Binance side of things but glad you managed to circumnavigate it with Trust Wallet! It's been eye opening actually how it all works and now I feel more confident too if I find a project that I trust in the DeFi space to go with them and give it a go! Just have to remember to buy double what I'm expecting if I want to provide liquidity!

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I was massively impressed by the guides as well. They were well written and the step by step format made it as clear as something as relatively technically complex as BSC defi can get. It took me only 30 mins as well.

Already earned 2 CUB as of just now :)

Posted Using LeoFinance Beta

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Smashing it mate! Seems like 30 minutes is the benchmark for zero to DeFi knowledge hey? Haha!

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