The Cronos blockchain-based decentralized exchange and DeFi platform VVS Finance is expanding its “Auto Harvest” feature for yield farmers to include Crypto.com’s Prepaid Cardholders, giving them the chance to spend what they earn from their crypto investments in thousands of real-world stores across the world.

VVS said Auto Harvest for Crypto.com Prepaid Cardholders is available immediately for any yield farms that pay out compatible VVS tokens as rewards. Users will see when they make a deposit which liquidity pools support the Auto Harvest feature. They’ll now be able to select their Crypto.com wallet as their “harvest destination”, and any rewards sent there will automatically be converted into USDC or a local stablecoin equivalent, making them spendable through the exchange’s popular crypto debit card.

It’s another feature that aims to simplify the DeFi experience for VVS users. VVS, which is the largest DEX platform on Crypto.com’s Cronos blockchain, stands for “Very, Very Simple Finance”, and its mission is to help make decentralized finance more accessible to people who are unfamiliar with the concept.

While its primary function is to provide a venue for users to swap crypto tokens, it also offers extensive DeFi capabilities within an intuitive user interface, giving users the opportunity to earn yield on their crypto holdings.

In addition to basic staking, where users help to process blockchain transactions in return for rewards, it also enables “yield farming”, which is a strategy that allows investors to loan their cryptocurrency to the exchange in exchange for benefits. Users can deposit funds into various liquidity pools, which provide the capital needed for others to trade against. When they do this, they earn a two-thirds share of the platform’s swap fees, which currently cost 0.2% of the transaction’s value.

Crypto.com is a centralized exchange platform and so it doesn’t utilize liquidity pools. Instead, the exchange holds the capital itself. But one of its best features is the Crypto.com Prepaid Card, which makes it easy for anyone with funds in their Crypto.com wallet to spend them out in the real world. So long as the user has sufficient funds in their account, they can spend them at any store that accepts Visa card transactions.

According to Crypto.com’s Esther Wong, the company’s Prepaid Card has become a “vital bridge” that connects the worlds of crypto and fiat, and with today’s update it also becomes a stepping stone to DeFi. She said it will allow VVS Finance investors to “automatically claim their yield farming rewards” and use them to purchase “everyday goods and services.”

There are some big incentives to want to use the Crypto.com card, besides just having the ability to spend cryptocurrency. For instance, if users buy and stake $400 worth of the Cronos blockchain’s native token Cro, they’ll be eligible for cashback rewards of up to 5% on their purchases, as well as discounts on third-party subscription services.

This makes the prospect of Auto Harvest rewards even more enticing. It’s an easy way for DeFi investors to off-ramp their crypto and make sure their prepaid cards are always topped up, as the yields they earn from VVS’s liquidity pools will be sent to their Crypto.com wallet once a day, but only as long as they have earned the minimum requirement of $6. Users can, alternatively, choose to continue harvesting their DeFi yields manually with no extra fees.

VVS Product Lead Yotei believes the Auto Harvest option will appeal to quite a few cardholders, as it reduces the headaches associated with managing yield farming activities by seamlessly connecting DeFi and CeFi.

“It’s a breakthrough in making decentralized finance accessible to mainstream users, who can seamlessly claim their rewards and convert tokens with zero friction,” he pointed out.

Source: Finance Magnates