Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Cryptocurrency investing carries significant risk, and readers should always conduct their own research and consider their own financial situation before making any investment decisions.
To borrow on Mare, your supplied collateral determines your borrowing limit. Mare stablecoins have a collateral factor of 80%, allowing you to borrow almost 80% of the supplied collateral. You can view your exact borrowing limit on the platform, and select the amount you want to borrow with the slider.
Borrowing on Mare earns you $MARE rewards, which are shared among suppliers and borrowers. The number of rewards you receive is pro-rata, depending on the amount borrowed compared to others. The interest increases the borrow amount, bringing your borrow limit ratio up as well so be mindful about how close to the borrow limit you are.
Borrowing allows you to earn with a secondary yield farming strategy while still maintaining your assets.
Once you’ve borrowed assets, you can put them to work in several ways:
If you decide to re-supply again on Mare with borrowed assets, be cautious as interest rates can quickly add up.
By farming on multiple platforms, you'll start to accumulate various reward types. To maximize your earning potential, consider compounding your rewards by staking on Mare, Kava and Equilibre.
You can stake your MARE tokens to earn additional rewards. There are two options available: uMARE and sMARE.
Keep in mind that you'll receive a staking derivative when staking MARE, which you'll need to reclaim your staked tokens.
Another way to earn rewards is by staking KAVA tokens. In addition to earning liquid KAVA rewards, staking KAVA also strengthens the KAVA chain and allows you to participate in governance decisions.
You can lock your VARA tokens on Equilibre to gain voting power and earn voting APY in the form of trade fees and bribes.
Mare Finance offers a yield farming opportunity for crypto investors to earn rewards through supplying collateral and borrowing stablecoins. You can then use borrowed assets to further generate yield through secondary farming strategies on various platforms such as Kava Lend, Equilibre, and Curve.
Compounding rewards can further be achieved through staking and locking VARA tokens for voting power. It is important to remember that yield farming comes with risks and it is crucial to understand and manage those risks before participating.
Do thorough research and keep a watchful eye on market trends to make informed decisions. Yield farming may have some risks, but with careful management, it can offer potentially significant rewards.