How to Yield Farm on NEAR Protocol: PembRock Finance

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The number of you have asked me to cover near protocol any potential your farming and investing opportunities on that chain today we’re going to do just that using a new app on your protocol called pembroke finance and looking at how you can participate in not only yield farming on your protocol but also leverage your farming for some really juicy rewards so if you

Want to find out more about that do stick around and watch till the end hello everyone and welcome back to the baking analyst channel on this channel we cover everything from cryptocurrencies to economics to personal finance with a focus on your farming decentralized finance and how to invest your money with all that sounds interesting to you do consider leaving

A like and subscribing to this channel with that being said let’s jump right into it the platform we’ll be looking at today which is a yield farm on near blockchain is pembroke finance now pembroke is a leveraged yield farming platform the first of its type on near protocol and there are several ways that you can earn a return on your investment as you can see

Over here the apis do look really really juicy especially now during a bear market 70 might not have seemed like much during the degen device summer days however it is a pretty high figure if you consider the current environment and let’s have a look at the coin pairs these are blue chip coin pairs so you’re going to be exposed to usdt stablecoin bitcoin as well

As near so let’s have a slightly deeper look at pembroke finance and how you can participate in one of these pools to earn returns so with the concept of leverage yield farming there are actually two ways you can earn yield on your assets in pembroke the first way is to do your usual yield farming you supply one asset and another asset and a pair and then put them

Into a liquidity pool earn the trading fees as well as yield farming rewards and that is what you can see if you go over to the farm tab so this is your usual yield farming interface you can choose your leverage by adjusting the slider over here up or down you can go all the way up to three times leverage based on your risk tolerance and then as you can see you

Can find the aprs that you’ll be getting for each level of leverage and as i change the slider you can see the apis start to change go ahead and choose a pool connect your wallet add liquidity and then get started earning that yield so if you want to get started you’ll find them on pembroke finance first of all you will need to set up a new wallet as you can see

On my screen over here we do have the near wallet already set up you do need to deposit some near tokens into your wallet in order to pay gas fees and have the wallet initialized after that you can just go ahead and connect your wallet right up here in pembroke finance choose the near wallet and then you get a prompt on connecting your wallet go ahead and connect

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Your wallet and you should be able to now farm on pembroke finance so let’s have a look at how exactly you can open a yield farming position now i do have some wrapped near tokens in my wallet if you don’t know how to get some wrapped near tokens you can go over to the ref finance app to wrap your near into w near so as you can see i can go ahead and click on this

Wrap button and do that transaction now that i have some amounts of wrapped near in my wallet i can go over to a desired farm of my choice and get started farming so now let’s go and select the wrapped near tab and find some farm pools that involve that token so i’m more interested in the usdtw near farm that is because the volatility of near is somewhat tempered

By the addition of usdt providing some mode of hedging so let’s go ahead and click on farm over here the next step that you can do is to choose which asset you would like to deposit in this case i’m depositing wrapped near and borrowing usdte because i do not have this in my wallet as you can see at about 0.5 near available and let’s go ahead and enter the amount

That we want to play with so let’s say we go ahead and put in 50 of our entire wallet balance and choose the maximum leverage of 3.0 times that will give us a total api of 33.52 percent apr to confirm the transaction now all we need to do is go ahead and click on farm and then approve that transaction in a wallet once that is done you should be able to see your new

Position in pembroke financially you can then go over to your portfolio tab on pembroke finance to see all the coins that you have farmed with and which pools they are in so as you can see on this farm positions page you can now see a new position at 67.3 apy which is the position that we have just opened so this is how you can track your assets on the portfolio

Page the second way you can earn yield using leveraged finance platforms like pembroke is using the lend function now because leverage yield farming works by people borrowing some amount of capital on top of their own in order to yield farm for high rewards there are also fees to be gained for those people who are willing to lend to this yield farmers and that

Can be accessed using the lending tools over here as you can see you can just deposit a single asset in this case so not the same dual asset setup as in the farms so you can just hold your hold your bitcoin hold the us and stablecoin and essentially earn yield just for huddling rather than deal with anything to do with impermanent loss so that is to say that if

You were to stake your tokens on this platform you’re not going to be affected by the changes in relative value between the tokens in a particular liquidity pool now if you want to participate in the lending side of things on the other hand you can go ahead and click on lend so let’s have a look at rap near for example where you can earn 22.49 apy so let’s max out

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My deposits of wrapped near tokens and do the same thing as we saw earlier in the video once that goes through we should now be able to see a new landing position pop up when we click on our portfolio page and if we go over to the land pools indeed we do have a new position available over here so that is pembroke finance basic functions that is what you can do to

Generate returns now what about the actual token because a lot of you in the discord especially you all are degens you like to go ahead and go farm with some high-risk tokens such as a governance token and get these really really high apis of 370 is this worth the play well we will be looking into that using some tokenomics analysis looking at their incentivization

Program as well as their staking program so pembroke has the pen token as their main native token you can then stake it in order to receive voting escrowed pen which is internet governance token and when you stake these tokens to get v epm then you’re able to earn 118 apr on that token so similar to many governance tokens or many native tokens out there however

We also see that they are running this thing called the lp incentivization program which is actually giving you a 20 bonus over a six month linear unlock so they’re giving you a slight premium to encourage you to swap your lp tokens to their native token so you have people who take them up on this offer of course this could be supportive for the value of the pam

Token and then we have the tokenomics of the actual token there are a 160 million in maximum supply and of course this is going to start out being inflation because your farmers have to be rewarded people who are lending out the capital have to be rewarded and then there was the lp incentivization scheme that all serves the purpose of attracting liquidity in order

To generate some sort of network effect we also see that the pen holders or holders of this native token will be able to share any revenues of the protocol so that includes fees collected from farmers when it harvest their yield farming rewards as well as fees charge lenders when they claim they’re borrowing profits so all in all you will be rewarded in some way

Or another through holding the pen token so that makes it different from tokens that have no other utility or value accrual and exist simply to be dumped on the market so if you are into farming using native tokens this could be one of the better place for you finally i wanted to talk about the risks associated with leveraged yield farming now as we all know in

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Regular fuel farming there’s already a whole host of risks such as in permanent loss as well as smart contract risk in the case of leverage yield farming however you are taking out a debt position you are borrowing money in order to use that capital to yield fine for potentially higher return then it costs you to borrow that money so you are actually adding on two

More risks to your overall strategy the first is that of liquidation if you borrow some coins and the collateral that you pledge in order to borrow that coin drops in value in relation to that borrowed coin then your loan to value ratio goes down when your loan to value ratio goes down to a level that is deemed unacceptable by the smart contract it liquidates your

Entire position you do incur a fee when you will get liquidated so that means that you will get back less than what you put in therefore incurring a loss and of course this risk of liquidation increases as you increase your level of leverage because as your leverage increases or as you borrow more your debt grows and therefore your debt position can only increase

By a smaller percentage in relation to your collateral before the entire position gets liquidated the other issue of course is that of interest rates losses and that is where you have the issue of negative apy that is when the cost of borrowing money becomes more than the returns that you can generate from that additional money now that has happened on numerous

Occasions especially when demand for borrowing is very very high now that means that you will have to monitor your position if your leverage your farming you can’t just leave it there and expect everything to just work itself out because that is a real risk you could wind up losing quite a bit if you have to pay out more apy than you’re actually earning from

Farming now in the last part of this video we will be going on to do a bit of our own research and that has to do with due diligence surrounding this project how safe it is whether it is likely to rug and you’ll be pleased to know that actually this pembroke finance project has been backed by some prominent investors so their entire team is doxed in some way or

Form you have animated research back in this you have refinance as well as near backing this inc for backing this so they’re pretty open about where they are where they’re from who they’re backed by and what they do so all good signs for a budding d5 project all in all i hope this video has been informative and useful if you liked it do consider leaving a like

And subscribing to this channel if you want to see more such contents we come up with this kind of content on a regular basis so do stay tuned and with that being said thanks for watching and i will see you in the next one

Transcribed from video
How to Yield Farm on NEAR Protocol: PembRock Finance By A Baking Analyst