Crypto Academy Week 15- Homework Post for [Professor @imagen] | Different Methods of Income Generation with Cryptocurrencies|
The year is 2070. The world as we know it has evolved a lot. Every thing is virtual. From virtual houses to virtual telecommunication to virtual currencies.
People have finally come to understand the phenomenon of CryptoCurrencies and have started using it as a source of income generation
Conventional banking system is totally outdated. The government and the banks do not control your assets anymore and neither can they devalue your money by printing more and more of it. It's an ideal world we are living in
But wait a minute, why 2070? We are living through this phase right now.
People are coming towards the decentralisation and have started using Cryptocurrency as s source of income generation
This lecture Primarily focuses on Income Generation with CryptoCurrency and the methods associated with it.
There are lots of ways of income generation and that is what I like about Cryptocurrencies. It gives you multiple oppurtunities and different ways to make money such as:
- Cloud Mining
- Running Masternodes
So what I will be doing in this assignment is Cryptocurrencies Lending. The DeFi ecosystem in the decentralized system has made it very easy to access financial offers and transactions. These transactions are recorded and saved on the blockchain with no other third party involved.
This means you will have authority over your assets as well as you'll be earning through it.
Now there are different types of Lending such as:
- Peer-to-Peer lending
- Lending to Margin traders
- DeFi Lending
In here I will be demonstrating the platform called JustLend and we'll learn how we can lend out Cryptocurrencies and earn through them.
Justlend is a decentralized platform the first in the market which offers you a place to lend and borrow your coins to gain profits in the form of Annual Yield Percentage(APY)
It is build on Tron blockchain. It works on the Protocol of two people. The supplier and the borrower. Bith of them can directly engage with each other to earn or to pay the floating interest rate.
Now a question arises
The foremost reason for me to use Justlend is the decentralized platform. Which means there is absolute transparency between the users and also the effective prices that are based on the market supply and demand
On justlend, there is an amazing oppurtunity for borrowers as well as suppliers.
The borrowers can sell short an asset and can get the right to use
The suppliers can get quick profits from interest on their assets which they supply to the fund pools.
Furthermore, Justlend accepts a variety of assets such as TRX, USDT, BTC, ETH etc.
The thing that I also like about Justlend is the Automatic order matching which means the requirements of the suppliers and the borrowers are automatically matched with each other making it easy for everyone.
Apart from that we've learned about the scalability in this week's lecture by alphax
The scalability of the Tron network is high which makes the transactions on this platform quick.
There are couple of ways to access Justlend. It can be accessed through chrome on Justlend
It can also be accessed through the Tronlink wallet which you can download on your phone.
As I have my own Tronlink Pro wallet with me So I'll be accessing it through that. Lets see how.
As you can see on the screenshot above I have clearly mentioned with the steps to open Justlend platform.
- Click in the Discover option on your tronlik pro wallet ( as shown in the screenshot)
- Click on Justlend on the main page (as shown in the screenshot above)
After doing this you'll be redirected to the justlend platform as shown in the screenshot below
- As shown in the screenshot above you will click on the three lines on the top right as shown in thescreenshot above.
After clicking on it a menu will appear as shown in the screenshot below.
- Click on the box shown in the screenshot above to connect your Tronlink wallet.
Lets demonstrate you all how to access the market on Justlend.
As shown in the screenshot above. Click on the three lines on the top right corner again.
You'll be directed to a menu. There click on the market option as shown in the screenshot below
Lets have a look at the market and analyze it
The coins available on the Justlend market are
Now there's a thing called jTokens
Which are given to the supplier when he/she supplies an asset to the Justlend market.
For example. If I supply BTC on this platform I will get in return the jBTC which can be used to borrow assets on this platform in the future
- The market at this moment has the total supply of $1.358 billion.
- BTC holds the top position with a supply of 55.76%
- *TRX lies on the second position with 14.61%
- The total amount borrowed is
38.2 million and USDT ranks the top position with 53.91% of borrowed assets.
- BTC has the highest supply which is $757.43 million*
- TRX has a supply of $198.46 million which is only second to BTC
- *WIN has the lowest supply which is *$9.22 million
- the highest supply APY as well as the highest borrow APY is of *WIN which is 23.23% and 15.10% respectively.
The lowest supply APY is of BTC which is 1.05%
The lowest borrow APY is of USDJ which is 0.18%
All this information can be seen in the screenshots above
In this assignment I'll be lending my TRX to Justlend market to earn APY. In the screenshot below we can see the APY on supplying TRX is 3.95%
So lets see how to supply TRX to the Justlend market.
- From the homepage of the Justlend platform, scroll down and from the market list click on the supply option of TRX as shown below in the screenshot.
After clicking on the supply button a popup will appear as shown in the picture below.
I have supplied all the TRX i have which is 104. Supplying the amount will earn me 3.95% APY
The supply is flexible which means I can withdraw my TRX at anytime I want.
- After tapping on the supply button a smart contract call gets started on your wallet.
you'll get a confirmation popup where you will have to click on the confrim button as shown in the screenshot above.
It will ask for your password. Enter your tronlink wallet password
After that you'll get your transaction done.
Note to professor:
Professor @imagen I completed all the steps till the end. But my transaction wasn't completed as I don't have enough energy and enough tron to complete this.
I manifested the platform correctly. All the steps were in sequence with clarity. All the requirements in the assignment were met. I hope you guide me in it and take my note into consideration.
attaching screenshot below
Thank you for this amazing and informative lecture on income generation with Cryptocurrencies. I learned a lot from this lecture and decided to use the lending from the platform called Justlend.
I completed all the steps asked by the professor.
I believe as we invest in our real life with currencies, Cryptocurrency is a better option to have an active as well as a passive income. Just like we saw through Lending money we can earn through APY.
Some people also choose the holding of their crypto assets. But personally I prefer lending for which I chose the Justlend platform which is a decentralized platform.
Professor @imagen I enjoyed doing this assignment and it took me quite a time to research and analyze on all the methods of income generation through Cryptocurrencies.
Hope you find it good as well.