Executive Summary

The financial world is moving forward at an incredibly fast pace, where new tools are being designed and made accessible to anyone willing to explore the Decentralized Finance (or DeFi) space to serve a wide variety of needs. Investment in DeFi has spiked to billions in locked assets. These assets are in the form of digital tokens called crypto assets and have many of the same characteristics as those seen in more typical financial markets.

The Generation Finance platform’s decentralized nature allows it to be permissionless (anyone can use them), transparent and censorship resistant. The use of blockchain technology and smart contracts also significantly decreases counter-party risk.

Moreover, DeFi supporters have latched onto the farming metaphor and brought into existence something known as “Yield Farming”. In this particular case, measuring SQR yield as the amount of interest that’s grown atop underlying crypto assets when put to use in Generation Finance platform.

Yield Farming enables the exchange of the SQR tokens not just to receive interest or a loan, but to receive new types of digital tokens (1Square points) these points in turn can be used to purchase NFTs in the platform and can be sold on opensea (NFT market place). This is one of the simplest paths to leverage the tokens for passive incomes. On the other hand, Staking is another method used to gain rewards by holding your cryptocurrency.