Passive Income
How to put your crypto assets to work through DeFi
Last updated
How to put your crypto assets to work through DeFi
Last updated
Kanon NFTs
One place you can invest SNS is in Kanon NFTs. You can purchase Kanon NFTs through the Kanon Exchange for either SNS or SOL. As described in train2earn income, each Kanon you hold increases your daily submission cap for train2earn.
Each Kanon NFT you hold also entitles you to a claimable reward in SNS tokens. The amount of the reward is based on how many Kanon NFTs you own and how frequently the embedded keywords are accessed by conversational AI powered by the Mind Expression engine. You can calculate potential returns from different Kanon NFTs using the NFT's Search Relevancy Index (SRI) score. Kanon NFTs with a high SRI are utilized more frequently than those with a low SRI, hence the potential returns are greater.
Liquidity Pools
Another way to earn returns on your SNS is by providing liquidity to a liquidity pool. A liquidity pool is a pool of crowdsourced funds locked in a smart contract. Liquidity pools are used to facilitate trades between token pairs on decentralized exchanges. Unlike the the traditional order book model, DEXs use automated market makers (AMMs) to allow digital assets to be traded automatically. If for example you wanted to swap SNS for SOL, you don't have to wait for a seller to appear, since you're executing the trade against the liquidity pool. So long as there is sufficient liquidity, the trade will happen automatically.
A popular option with our community is to provide liquidity to a SNS / SOL 'whirlpool' (liquidity pool) on Orca. Orca is a decentralized exchange (DEX) on the Solana blockchain. To participate, go to Orca, connect your wallet, and then select the SNS / SOL whirlpool. You contribute SNS and SOL in a 70/30 ratio in exchange for a APY of 43.8% (at time of writing). So if you deposit 10,000 SNS, it will grow to 14,380 SNS after a year!
