Increment Earn is a decentralised money market on Flow Blockchain built by Increment Fi. Here’s a tutorial showing you how to use this product including why use it and some of the risks involved. As always this is not financial advice, please DYOR before engaging with any financial product. See our disclaimer at the bottom of this page.
For the full video tutorials, view our original twitter thread here:
Step 1: Connect your Wallet
Login with either your Blocto or Lilico wallet at https://app.increment.fi/dashboard. Blocto requires your email to sign in/register and then a one time passcode will be sent to your email. If you’re a frequent Blocto user, it may automatically connect
Step 2: Supply
You can deposit your fungible tokens and earn interest on them. To do so, choose the token market (currently $FLOW, $FUSD, $USDC, $BLT), click the ‘Supply’ button, follow the prompts and confirm the transaction. Current APR is 5.8% on $FLOW with $136k supplied
Step 2.5: Why deposit
Some of you may wonder why deposit when staking may give a higher APR?
- dynamic interest rate
- instant liquidity (Increment Earn suppliers can withdraw at will as long as there’s enough liquidity in the pool)
- deposits grant the ability to borrow
Step 3: Borrow
Supplied funds can be used as collateral to borrow other fungible tokens. Click ‘Borrow’, follow the prompts and confirm the transaction. Note the higher the percentage of borrow limit is used, the closer to liquidation your account is.
Step 4.5 Why borrow
- Take necessary cash without selling
- Short-sell a token to take profit
- Earn $MyToken without holding Flow
- Participate a launchpad with no BLT exposure
Step 4: Repay
You can repay the borrowed amount plus interest by clicking ‘Repay’, following the prompts and confirming the transaction.
Step 5: Withdraw your funds
If you want to withdraw you can do so any time with interest accruing in real time on a per-block basis. To withdraw, click the ‘Redeem’ button, follow the prompts and confirm the transaction.
Here are some risks of using a product like this:
1. Liquidation risk
2. Oracle / Price feed risk
3. Smart contract risk (Increment Fi has been audited internally, by Dapper and by the third party Oak Security)
More details on risks: https://incrementfi.medium.com/introducing-increment-earn-556420d770af