Did you know that Ronin Chain has much more than just Web3 Games? Within this, which is one of the main Web3 Games networks, there are several Dapps that you can find in Ronin Wallet by clicking on “Discovery”. Let's take a look at two of these dapps that are related to DeFi. The first is RON Staking, the main token of the network, and the other is related to AXS Staking, the token of Ronin's main game, Axie Infinity. Come discover a little more about the world of DeFi that exists within the gaming-focused Blockchain Network, Ronin.
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[ENGLISH VERSION]
What are DeFis?
Source: Ronin Wallet - dApps
DeFi is an abbreviation of two other words, Decentralized Finance. On the blockchain, unlike what normally happens, you can exchange tokens through Dapps, which are applications created on Web3, like the one we will see below, that perform this action in a decentralized way, that is, without an institution being responsible for the exchange, but rather the users who interact on the network and provide liquidity so that the exchange can occur, earning a percentage of the transaction as a reward in the form of fees.
Liquidity Pool vs. Stake
Source: Ronin Wallet - Services
Usually when we think about DeFi, two terms come to mind: Liquidity Pool and Stake. In the Liquidity Pool, the user usually forms a pair with two tokens to provide liquidity and earns from the fees, but there is a higher risk because the amount of tokens fluctuates as the price of the two Cryptos changes. In Stake, the risk is still high, but it ends up being lower than in the Liquidity Pool, because the user only places one token to receive a percentage of return.
Difference between APR and APY
Some terms you will come across when entering a Dapp that is a DeFi are APR or APY, which indicate the estimated return that that Pool or Stake is generating. APR is an annual return rate, which does not account for compound interest. APY is a rate of return that considers the incidence of compound interest, which would be interest on interest, considering that what the pool or stake generates is always reinvested.
RON Stake
The Ronin Chain network has Delegated Proof of Stake as its transaction validation system, in which RON Token holders choose the validators who will validate the network's transactions. There are currently 304,000 users delegating to 32 validators, which represents over 242 million RON tokens staked on the network.
Both validators and delegators earn daily rewards as an incentive for holding tokens and keeping the network running. The largest validator currently is Luganodes, which has a total of 17 million Ron tokens in Stake, but with a 7.5% APR. After it, the others have slightly higher APRs, but in return, smaller amounts of Stake. It is interesting to note that large companies such as Google and Animoca Brands are some of the validators. Also noteworthy is Yield Guild Games, which is one of the main guilds and also a validator of the Ronin Chain.
AXS Staking
AXS is the main token of the Web3 Game, Axie Infinity, and is used as a reward for players. It is interesting to note that at Ronin, there is more attention when it comes to Axie Infinity, having an exclusive platform for Axie assets, such as AXS Staking itself. Some data that can be observed when accessing the AXS Stake website is that there are almost 250 million dollars in Stake, a very considerable amount and an estimated reward of 30% APR for those who stake the token on the platform. It is a high APR, but remember that the user is running the risk of fluctuations in the price of the AXS token.
The fee to Stake or Unstake the AXS Token on the platform is something close to $0.01 in RON tokens. An interesting detail is that both Stake and Unstake happen in seconds, with no minimum time to withdraw the tokens from the stake, as is usually the case.
