Ways to Generate Passive Income on the Blockchain: Smart Pools on Metalswap

by Arthur · August 22, 2022

Investment opportunities in the crypto industry are becoming more diversified. From its foundation just over a decade ago to now, decentralized finance has come a long way, replacing an exclusionary and uncertain orthodox system, with a new decentralized financial system that facilitates peer-to-peer transactions.

With the growth of DeFi, investment opportunities have diversified, from early token purchases to cross-chain trading. In Metalswap, investors can participate in the commodity market in different ways, as an active or a conservative investor.

Metalswap offers the possibility to generate income “passively” through the pools offered by the platform, for which it is necessary to have native XMT tokens and choose a parity to perform the transaction, with the network you want to operate on among the three available: Polygon , Ethereum or BNB Chain.

Staking Pools, Iron pool, Smart Pool and Staking NFT make up the group of possibilities that the user has to obtain passive income within the platform. The rewards received for locking XMT in the different pools are automatically generated depending on the level of participation in the pool.

But let’s talk specifically about participating in a pool, the Iron Pool. This specific pool available on the Ethereum network has two peculiarities; the first is the duration, the duration of the pool is annual; and the second is the minimum return on investment because participation is limited to a certain number of users who can participate in the specific pool. In this way, the minimum APY (40%) to be paid is guaranteed by the fixed amount of XMT blocked by the available places in the pool.

In the BNB Chain network, two pools are available, a Smart Pool with an approximate APY of 25% and a Traditional Block Pool with an APY of 44% for a period of 210 days; where investors can use XMT to earn profits within the platform. The difference between the two pools is that the first, Smart Pool, provides through smart contracts an additional bonus to the official pool, and therefore it is more profitable, so that the participant obtains additional rewards during the time pre-established by the pool.

A Metalswap account also provides the ability to monetize NFTs on the Polygon network, allowing liquidity providers for the XMT-USDC pair to stake their NFT tokens to earn a higher percentage of profits in XMT as provided by the MetalSwap DAO .

Because Metalswap is a multi-chain protocol, there is an opportunity for each chain to continue generating passive income in a stable manner; it also has a bridge that allows assets to be transferred from one chain to another without complications. All this is possible thanks to decentralized financing: the lower costs of offering a financial product with fewer intermediaries means that investors can be more profitable.

Through the security offered by blockchain using decentralized finance apps, newbies can enter a world that has historically been created and manipulated by a few for their own benefit. The democratization of finance seeks to include and expand the scope in such a way that every person from the comfort of the mobile phone can access these instruments and operate without the need for bank coverage, for example.

About MetalSwap

MetalSwap is the decentralized and developed exchange solution. Through a set of smart contracts, originally deployed on Ethereum’s main chain, we will make it possible to execute exchange agreements without the need for intermediaries, at reduced costs and without time limits. From traditional financial functions to a new digital LEGO-Money brick!

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