Machine DeFi 103 | Liquidity Providing, Staking, & Tokenized Machines

With over 3.3 million machines already connected, peaq envisions a future where robots and devices autonomously earn, trade and invest. It is important to focus not only on the long-term vision but also on immediate opportunities available today, such as providing liquidity, staking tokens and gaining early access to tokenized machines.

Key Highlights

Decentralized Exchanges (DEXs): MachineX: first Machine DEX enabling humans and machines to swap DePIN tokens. Liquidity providers (LPs) earn fees by supplying token pairs (e.g., PEAQ/USDT). AMM model with concentrated liquidity ranges (narrow = higher fees but riskier; wide = safer but lower returns).
Staking PEAQ: Native staking possible via peaq app or liquid staking via Parasail. Yields typically range from 3-6%, depending on validator commission. Tokens require a two-week unlock period.
Tokenized Machines (Machine RWAs): Machines tokenized as real-world assets (RWAs) generate yield from actual economic activity. First project: tokenized robofarm in Hong Kong producing fresh vegetables. Token holders earn fractional revenue shares.
Vested Emission Offerings (VEOs): Discounted tokens released gradually to prevent dumping. Early investors commit liquidity to MachineX pools, reinforcing ecosystem sustainability. No active VEOs currently, but updates available via Lucid Labs.

Why It Matters?

Machine DeFi 103 highlights peaq's strategy of bridging speculative crypto with real-world machine-driven value. By enabling liquidity provision and staking, peaq lowers the barrier for individuals to earn yield while strengthening network security and trading depth. Tokenized machines represent a breakthrough, shifting DeFi from abstract speculation to tangible revenue streams tied to physical assets, which could attract institutional and mainstream interest. VEOs further align long-term incentives by channeling discounted tokens into liquidity pools, ensuring ecosystem resilience.