Merlin is a cryptocurrency project that wants to create more avenues for passive income in the burgeoning Decentralized Finance (DeFi) ecosystem.
This is coming on the heels of some of the issues associated with the current model of Yield Farming on DeFi ecosystems. So, Merlin has introduced what is known as Merlin Vaults. These vaults will be the medium for compounding the interests on the crypto assets you set aside (staked) in the Merlin pool.
This article explains how the Merlin Vaults work, as well some of the unique attributes that make the Vaults an alternative to traditional Yield Farming protocols.
WHAT ARE MERLIN VAULTS?
Merlin Vaults are automated investment instruments that are exclusive to the Merlin ecosystem.
The vaults are built with a wide range of automated and optimal financing mechanisms that maximize yield.
As a Decentralized Finance (DeFi) enthusiast, you are looking for an opportunity to make more money from the crypto assets you are willing to stake. This is not common traditional DeFi platforms.
Therefore, you want to utilize the opportunities presented by the Merlin Vaults to maximize your cryptocurrency investments.
Besides, the Merlin Vaults have been automated to reinvest and compound your interests in crypto assets.
I agree that this is a better DeFi investment alternative because it helps you to keep your crypto assets in the works instead of withdrawing the little profits you made.
Over time, the compound deposited assets would then grow into thousands of dollars in the coming years. Compound interest has been one of the effective ways of growing wealth. Merlin is the first project that will bring this wealth creation strategy to the Decentralized Finance (DeFi) community.
FEE STRUCTURE
Merlin wants you to make as much money as possible without incurring more expenses. That informs the reason why the APYs displayed on the Merlin Vaults are only calculated and published after the fees associated with using the vaults have been calculated and subtracted from your earnings.
HOW CAN I USE MERLIN VAULTS?
The easiest way to access the Merlin Vaults is to stake or invest your crypto assets in the liquidity pools. This is important because you need to stake or invest your crypto assets before you can earn compounded passive income.
Duration of the Investment
While you may be able to withdraw your crypto assets anytime, it is not advised. This is because the compounded interests that Merlin Vaults are promoting would run for a longer time than traditional liquidity pools would.
So, you want to invest your crypto assets for a year or more so you can earn the compound interests that come with that.
SUPPORTED ASSETS
As much as the Merlin Vaults are open for cryptocurrency investors, not all types of crypto assets would be accepted.
Already, the team behind the project mentioned that only single crypto tokens or a pair of crypto tokens are allowed to be invested in the liquidity pools for onward processing by the Merlin Vaults.
Some of the supported crypto assets are:
- WBNB-USDT LP
- CAKE
- CAKE-WBNB LP
- CAKE-BUSD LP
- WBNB-DOT LP
- VAI-BUSD LP
- WBNB-XRP LP
- USDT-BUSD LP
- WBNB-UNI LP
FINAL WORDS
Compound interest is one of the best ways to increase your money. Merlin Vaults have been set up for that purpose.
I am optimistic that more DeFi investors will research more about this project and see how it can help them maximize their yield in the DeFi ecosystem.
USEFUL LINKS:
Telegram Announcement: https://t.me/merlinannouncements
Telegram Community: https://t.me/merlinlab
Telegram Bounty Rewards Group: https://t.me/merlinbounty
Twitter: https://twitter.com/Merlinlab
Reddit: https://reddit.com/r/MerlinLab
Medium: https://merlinlab.medium.com/
Website: https://www.merlinlab.com