What's buzzin' fam?
Well, you have read it right!
We will talk about Katana!
LET’S LEARN MORE ABOUT KATANA!
Many players are feeling overwhelmed by the number of alternatives currently accessible in terms of Axie Infinity economics after the release of Katana.
Wondering what is Katana? I got you, beez! Katana is a Ronin decentralized exchange. Decentralized Exchanges (DEXs) are programs that use smart contracts to allow individuals to swap any two assets without the use of a traditional bank or other trusted third party. Katana will allow you to rapidly and cheaply trade your wallet's assets on the Ronin blockchain at any time and from any location. Sounds good right?
Users now have a range of choices, including staking of new token pairings, liquidity pools, and switching from one currency to another, after AXS staking became the standard a few months ago.
AXS Staking
A few months ago, this was already accessible. The mechanics are easy and straightforward. All in all, not complicated. They are based on concepts that can be applied to any savings account. The staking contract's issuer (Sky Mavis) requests that your chosen amount of AXS be used for their own management and profitability through their activities, and you will get a further amount of AXS once you have claimed your original amount of AXS.
So far, this model has performed admirably, and the results have been more than excellent. The borrower generates money by utilizing the tokens to validate smart contracts in the case of crypto staking. Depending on how much you gave, you are allocated a percentage of profit for each block that is successfully authenticated.
Liquidity Pool
To grasp the concept of liquidity pools, picture renting a portion of a server. On a daily basis, there are hundreds, if not billions, of operations (transactions) taking place on this server. You are renting a piece of the server's profits by providing liquidity to it.
The more your share, the greater your "ownership" and the greater your profits. Instead of supplying a single asset (AXS, SLP, WETH, USDC), you must first construct a pair, which requires you to hold at least two assets, and then let Sky Mavis contribute that number of paired tokens to the pool in order to begin collecting profits.
Farming
Farming is identical to AXS staking, except that it is done using token pairs, and instead of receiving your rewards in the form of an extra quantity of the pair supplied, you receive them in Wrapped Ron ($WRON). Although the Ron Token has yet to be deployed, we know it will be used to pay for transactions throughout the Ronin network and Axie Infinity.
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Simple Reminder
It doesn't matter if you start with a very small amount, what matters is that you remain consistent and continue to increase the value of your assets.
Be aware that the cryptocurrency market is quite volatile, so expect ups and downs. Prices will fluctuate dramatically. Cryptocurrency may not be a good fit for you if your financial portfolio or mental health can't manage it.
Cryptocurrency is currently all the rage, but keep in mind that it is still in its infancy. Investing in something new comes with its own set of obstacles, so be ready. If you want to join, as they say, DYOR. Do your own research beforehand and start with an amount you can lose.
Ps. This is all my understanding about Katana, corrections will be highly appreciated.