Bitrue, the crypto investment platform that made a name for itself as a leading XRP exchange, continues its reinvention as a hybrid exchange that combines CeFi with DeFi. In 2020, Bitrue executives have made no secret of their desire to integrate the best elements of decentralized finance into their centralized exchange.
On November 2, the platform agricultural yield and the mining service went live, giving users a way to earn a passive return on their staked assets. Yield farming was the hugely popular use case for DeFi that dominated the summer, promising to deliver new tokens to users who locked them into decentralized protocols. Bitrue took this model and applied it to a centralized platform, giving its users exposure to yield farming without the systemic risk, like smart contract bugs or high gas fees.
Bitrue #YieldFarming is now live 🥳 If you have updated your app to v4.3.0, you will see the new #Challenge option on your homepage. 1st investments will start in about 3 hours with up to 500% APY on $BFT & $FNX, with more opportunities to come. Read more – https://t.co/2u5XKMy7E5 pic.twitter.com/HWYqIMFTUP
— Bitrue (@BitrueOfficial) November 2, 2020
Agriculture meets mining in Bitrue
Yield farming is now officially launched in the Bitrue application ; users running the latest version of the mobile app will find the option under “DeFi”. The initial period set for the funds lock is seven days, during which Bitrue will invest users’ funds in various DeFi protocols and collect the revenue on their behalf. Users who lock their USDC will receive FNX in return, with an estimated 60% APR.
To complement this service, Bitrue is also launching a service called Bitrue Mining Pools. It is for all intents and purposes the same as yield farming in that it generates a return for users who stake tokens. In this case, locking XRP and BFT in mining pools will allow Bitrue users to earn BFT and the APR is calculated at 500%.
A taste of what awaits you
Bitrue has promised that his initial farming and mining pools are just a taste of what he has in store. New pools will be added, providing additional ways to earn yield from staking assets. Additionally, Bitrue threw a bone at new users who sign up for the exchange and complete KYC verification. After depositing at least $100 in assets into their account, users will be eligible to receive a sign-up bonus of 200 BFT.
Yield farming and mining isn’t Bitrue’s first foray into DeFi, by the way; earlier this year, the exchange launched pig power, a service that allows users to earn passive interest on loans. Bitrue CEO Curis Wang spoke enthusiastically about his desire to see CeFi and DeFi married to create a hybrid solution that builds on the strengths of each crypto vertical.
For beginners, the world of DeFi can be daunting due to the complexity of interacting with decentralized protocols and the number of attack vectors, ranging from impermanent loss to “rug shots”. Centralized exchanges can overcome many of these issues by offering automated strategies that generate yield on behalf of their users. If the hybrid model that Bitrue pioneered takes off, expect to see many more exchanges implementing this approach in the near future.