In this RFox Finance review, we take a look at the newest venture by Red Fox Labs. We explain what is RFox Finance, plus how to buy, stake and farm RFOX and VFOX tokens.
What is RFox Finance?
RFox Finance is the latest venture by Red Fox Labs that operates on the Binance Smart Chain and engages in decentralized finance where users can trade, farm, and stake. Apart from the colour scheme, you’ll find that RFox finance is very similar to PancakeSwap and that’s because it’s actually a fork of PancakeSwap, which was, in turn, a fork of UniSwap.
Who are Red Fox Labs?
Red Fox Labs was founded in 2018 with the intent to be Southeast Asia’s first blockchain venture builder and to help with the mass adoption of blockchain and other emerging technologies.
The team is headed up by their Co-founder and CEO Ben Fairbank who worked for multinationals such as Grab, Virgin, and Is also known for being the GM of Komodo Platform. Glen Pearce is their Co-Founder & Chief Strategy Officer whose had international experience in a career that spans more than 15 years.
Red Fox Labs are responsible for many different ventures which include “Virtual Space”. Which they state will be a fully immersive discovery shopping and retail experience, that combines gaming elements and forms its own standalone metaverse. Essentially, Virtual Space will bring together the likes of NFTs, e-commerce, gaming, and entertainment. All shops, assets, and billboards will be NFTs and also a unique way for people to earn, interact and create.
There’s RFox Finance which we’ll be looking at today, plus RFox tournament-based video games and KOGS which are collectable, playable, and traceable non-fungible tokens used as in-game currency.
What are RFox Finance $RFOX Token?
The RFox token powers the entire RFOX ecosystem and acts as a form of payment. It’s used for trading fees, to develop liquidity pools, and for the creation of NFTs. Essentially the RFOX token assumes the role of being the main currency for Red Fox Labs ventures.
The token is purposed to be blockchain agnostic and circulates on both Ethereum and the Binance Smart Chain.
RedFox Finance Review: How to Buy, Stake & Farm
How to Convert RFOX from ERC20 to BEP20 Tokens
If your RFOX tokens are currently ERC20 (ETH) tokens, you can use a Bridge to change your ERC-20 tokens into BEP-20 compatible tokens so that they can interact with BSC (Binance Smart Chain).
The bridge is 3rd party, named multichain.xyz and they state that RFox didn’t develop or commission it, nor do they make any revenue from it. Therefore, they do state to use it at your own risk.
This bridge also works both ways. So, if you want you can also bridge your BEP-20 $RFOX back over to the Ethereum Mainnet is an ERC-20 token.
To use the bridge you’ll need some ETH to pay for gas fees to bridge $RFOX from ETH Mainnet, and also BNB to pay gas to complete the conversion.
What is the VFox Token?
The VFOX token can be earned from yield farming (or staking) and users who hold the $VFOX token will receive a share of sales made in the Virtual Space, which is paid quarterly.
The number of VFox tokens is set at 21M, pre-minted and limited to 5 months of yielding. These tokens will never exceed a supply of 21M. VFox farming will end in late September of 2021.
How to Get Started with RFox Finance
You may find that your MetaMask wallet automatically connects to the Ethereum Mainnet, but with RFox you’ll need to be connected to the Binance Smart Chain. If you don’t already have Metamask setup with the Binance Smart Chain you can use my tutorial below.
Plus, you’ll need to have some BNB to pay for the gas fees and some RFox tokens if you want to start earning rewards from Yield Farming and staking. If you don’t already have any BNB, you can buy the tokens over on the Binance Exchange.
RFox Yield Farming and Staking
With RFox Finance you can earn VFox tokens through the process of adding liquidity to the pools and staking your LP tokens. Or you can also single-stake your RFox or VFox tokens into the pools to earn VFox rewards.
By staking your LP tokens, you will earn more in terms of APRs with current rates at around 1,325%. However, as more people deposit into the liquidity pool you would get less of the harvest, as essentially your share of the total pool will be diluted. Plus there are some risks with staking your liquidity and that’s around impermanent loss.
If you’re not comfortable with providing liquidity due to the possible risks, you can simply choose to hold your $RFOX. Alternatively, you can single-stake your $RFOX into the pool to generate a yield.
At the time of writing this RFOx Finance review, there are currently 2 single staking pools available. You can either stake vFox into the VFOX pool. Or you can single-stake your $RFOX in the RFOX pool. Both pools will generate yields in $VFOX. These will both generate lower yields than farming, but you will not risk impermanent loss.
What is Impermanent Loss?
Impermanent loss basically describes the loss of funds that may be experienced by liquidity providers due to the volatility in a trading pair.
When adding liquidity you could end up with more of 1 token than another, depending on the way that people are trading. If one of these tokens is then worth significantly less you could end up worse off than simply holding or staking the actual tokens at a lower rate.