BiFi X’s single transaction flash loans boost profitability
BiFi X, the extension of BiFi lending service, has pushed DeFi lending into a new era of accessibility and profitability. Thanks to single transaction flash loans, investors can make the most of their loans without the need to switch their assets around different pools.
BiFi X is a natural progression and a revolutionary feature of the BiFi Lending pool, bringing a new age of lending to the DeFi community. The platform is available on both Ethereum and Binance Smart Chain.
BiFi revolutionized the DeFi space by allowing crypto enthusiasts to interact with both the Bitcoin and the Ethereum blockchains easily. There is a tangible divide between the BTC and ETH communities. The reasons behind it are numerous. However, one of the main factors in this separation is the lack of interoperability between the two. BiFi’s main goal is to bridge this gap and give users an efficient way to use both BTC, Ethereum-based, and all assets on the same platform.
How does BiFi X work?
BiFi X is separated into two main functionalities – Earn and Bet. With Earn, investors get the opportunity to maximize their yield farming rewards in a single transaction. With Bet, investors maximize the profit potential on margin trading positions in a single transaction.
BiFi X Earn allows users to combine a normal deposit with several flash loan deposits. With this, investors can leverage the maximum possible earning potential. For example, an investor has 1 ETH and puts it into a yield farming pool. Earn allows that investor to borrow a further 3 ETH and put it towards the same pool, boosting the whole stake to a total of 4 ETH. In this scenario, the investor ends up with 4 ETH in deposits and 3 ETH in borrows — earning BiFi token rewards for 7 ETH worth, instead of the 1 ETH they started with. In this sense, the BiFi X Earn functionality allows for seven times better leverage.
BiFi X Bet functions similarly, however, instead of only solid capital, investors deal with margin trading. Margin trading is an interesting way to leverage profits, even though it’s riskier than simply yield farming. Imagine that the price for 1 ETH is currently 1000 USDT, however, you believe that it will go up. With BiFi X Bet, you can place a bet of 1 ETH and boost it with a flash loan of a further 3 ETH. This happens by borrowing 3000 USDT. In this scenario, if the price goes up to 2000 USDT, you will only need 1.5 ETH to pay back the borrowed 3,000 USDT. This means you will still have 2.5 ETH left, which would be worth $5,000. If you just held on to your initial 1 ETH, that would be worth $2,000.
Of course, it is important to note that these are simply hypothetical scenarios outlining the best possible turn of events. With both margin trading and yield farming, there is a degree of risk of losing your whole investment. Traders should be aware of the risks involved in borrowing and lending.
Before you get a chance to use the BiFi X platform, you need to load your wallet with some BiFi tokens. The platform uses them to cover platform fees.
You can get some BiFi tokens through the BiFi service on Lending, Staking, or Pooling. This can be done either on Ethereum or on Binance Smart Chain. You can also find a full list of the exchanges supporting BiFi tokens here. Another convenient way to get your hands on BiFi tokens is through the native MetaMask swap service, which supports the token as well.
What is BiFi?
BiFi is a decentralized finance solution aiming to bridge the gaps among different blockchains. Built on the BIFROST multichain middleware platform, BiFi allows investors to easily employ all of their holdings regardless of the chain they’re hosted on. The BIFROST multichain also enables developers to use multiple blockchain protocols simultaneously and seamlessly when creating decentralized applications.
The BiFi ecosystem continues to grow, and BiFi X is just the latest addition. By smashing the barriers and connecting different chains, BiFi aims to make DeFi more accessible than ever. Their services allow both old-time BTC hodlers and crypto enthusiasts who are more into altcoins to participate in DeFi through the same platform.