How to Make Revenue using the Strike Finance Platform

What is Strike Finance?

Strike Finance is a decentralized money market built on top of the Ethereum blockchain. It allows users to borrow and lend digital assets in a non-custodial environment, meaning that users always have control of their assets, and the protocol’s parameters are enforced on-chain.

In traditional financial systems, money markets are centralized, and participants must trust the centralized institution to hold and manage their assets. In contrast, Strike is a decentralized protocol that operates on the Ethereum blockchain, which means that users can interact with the protocol directly without the need for intermediaries.

The primary purpose of Strike is to facilitate the provision of collateral by users, allowing them to either earn rewards as a supplier or utilize the collateral to borrow other digital assets from the protocol.

Supplier and borrower

As a supplier, users retain control over their digital assets constantly. The protocol enables users to transfer their digital assets through the mint function, which involves supplying collateral to Strike. After successfully supplying and confirming the digital asset on the blockchain, a proportionate sToken for the underlying asset is minted.

When a user intends to start a borrowing process, they use their provided digital asset as collateral to secure repayment of the borrowed balance. The fees charged to the user are calculated and added for every Ethereum block. The borrowing limit for the user is determined based on several factors. The protocol considers the current value of the collateral as the primary factor.

Strike staking

In order to generate revenue from the protocol, individuals must vest or lock their STRK tokens.

There are two earning options available:

• USDC
• STRK tokens (Strike native token)

Only users who have locked their STRK tokens are eligible to earn both USDC and STRK tokens. To earn revenue from the protocol, STRK holders may lock their tokens for a 12-week period to receive protocol revenue and penalty fees.

Protocol revenue is derived from all market reserves, while penalty fees consist of a 50% early withdrawal fee for supplying and borrowing distribution STRK rewards.

DeFi 3.0

Strike DeFi Vault 3.0 provides an opportunity for users to participate in profit sharing. This is achieved by staking STRK-ETH liquidity provider (LP) tokens on the platform. When users stake their tokens on the platform, they earn rewards in the form of STRK on ETH.

To participate in the profit sharing, users must first own STRK-ETH LP tokens. Additionally, the more STRK-ETH tokens a user stakes on the platform, the higher their profit-sharing rewards will be.

Furthermore, users must own at least one Strike Boost NFT to be able to enter the vault. Strike Boost NFTs are non-fungible tokens that allow users to access premium features on the Strike platform, including increased rewards and lower fees. The maximum number of Strike Boost NFTs allowed in the vault is 20 per address.

Conclusion

Strike finance represents an exciting new development in the world of decentralized finance, with the potential to promote greater equity and fairness while providing an incentivized ecosystem.

About Strike Finance
Strike is an autonomous and decentralized money market that enables variable based rates for supplying digital asset collaterals to the protocol and from borrowing digital assets from the protocol with over-collateralized assets.

Our Socials :

Website : https://strike.org

Twitter : https://twitter.com/StrikeFinance