The decentralized finance market has experienced a great boom thus far, and some experts estimate it will grow into an $800 billion industry in 2022. However, this is not the major reason for this article. The booming DeFi market has attracted a huge number of players who engage in yield farming and staking. According to DappRadar, the total value locked in DeFi has grown to a staggering 936% within just one year.
The figure above proves that more people start appreciating the opportunities provided by the DeFi market. What if there is a tool to help incentivize more people into the DeFi market and facilitate their trading?
In fact, this is exactly what DeHive is seeking to achieve with the upcoming launch of its auto-compounding tool known as DeHive Impulse.
DeHive is a multi-chain asset management protocol that creates and optimizes a reliable set of tokenized assets with efficient yield farming techniques and strategies. This project provides a first-to-market decentralized Cluster protocol that is aimed to facilitate trading by implementing various DeFi strategies to a Cluster containing the most promising crypto assets.
What is DeHive Impulse, And How Does It Work?
DeHive Impulse is the auto-compounding tool that the DeHive platform is currently developing to help traders facilitate their trading and boost profit. It will be designed to help you automatically execute compound interest on your DeFi holdings without having to go through the rigorous manual process.
With DeHive Impulse, users will be able to receive compound interest on their existing LP tokens. Compound interest is the interest on the primary investment and all the interest accumulated over time, a so-called “interest on interest”.
At DeHive, the team has been experimenting with compound interest technology for some time now, and they are finally having a breakthrough with the DeHive Impulse.
With DeHive Impulse, you will get automatic compound interest on the existing liquidity pool. It is designed to help you make a huge profit with a single click of a button. It is just as simple and easy as it sounds. All you need to do is add funds into a liquidity pair on an exchange and wait for your funds to start getting liquidity pool tokens. As this happens, commit those tokens to the Dehive Impulse smart contract, which will handle it from there, creating a compound interest to ensure you have a higher profit.
The most interesting thing is that the DeHive Impulse smart contract does not have any real access to your funds. While your funds are stored on an exchange of your choice where you have created a liquidity pair, the DeHive auto-compounding tool only adds new tokens to your initial investment.
For now, the DeHive Impulse technology is designed for Polygon protocols, starting with SushiSwap and QuickSwap. Yet, the chances are high that the DeHive team will release more Impulses for other platforms and chains.
Conclusion
Compared to the manual process of carrying out compound interest in DeFi, DeHive novel technology has what it takes to drive the DeFi market to a new height. It will attract more liquidity providers to exchanges, thus increasing the total value locked in DeFi platforms. If the technology can be integrated into other protocols and not only the Polygon protocol, the effect will be massive.
