Crypto Academy Week 15- Homework Post for Professor @imagen | Different Methods to Generate Income with Cryptocurrencies|

Hello Steemians, I welcome you all to week 15 of Steemit Crypto Academy. In today's lesson, professor @imagen have highlighted the different methods we can generate income with cryptocurrencies. Cryptocurrency is really shaping our present-day finance and users can obtain financial services to earn passive income. Different cryptocurrency platforms and exchanges offer these financial services to earn income with cryptocurrency. For this study, I will be explaining one of the methods of earning cryptocurrency which is " Cryptocurrency Lending".

Source

Cryptocurrency Lending

Most people will quote " holders get rich", but I do not buy the idea of keeping my assets in a wallet until the price gets to a certain level before I can make money.
Cryptocurrency lending enables users to earn interest when they lend out their asset to cryptocurrency platforms or liquidity pools. The DeFi ecosystem makes it very easy to access financial services in a decentralised manner. Transactions are recorded on the blockchain without the involvement of any third party. This makes cryptocurrency more guaranteed as users get to have control over their assets even while earning interest.
In this post, we will be exploring JustLend platform and how we can lend out cryptocurrencies to earn interest.

JustLend

Source

JustLend is a decentralized lending and borrowing platform build on Tron blockchain. JustLend enables users to lend and borrow assets to acquire interests as Annual yield Percentage(APY). In JustLend market, two players are present. The suppliers and the borrowers and these players interact within the market protocol to earn or pay floating interest.

Why JustLend Platform

JustLend market protocols provide a lot of incentives to users. Borrowers can sell short an asset or borrow the right to use. Similarly, lenders earn interest on assets they supply to the fund pools. Unlike other centralised platforms, JustLend is a decentralized platform that provides users transparency and effective pricing that is based on the demand of the market. Also, due to the scalability of the Tron network, transactions are carried out faster and in a more convenient way. Similarly, users are allowed to supply and withdraw assets anytime with generous interest. JustLend also offers automatic order matching which enables automatic match of supply and borrows requirements. JustLend is an amazing platform for lending and borrowing assets to generate reasonable returns.

How to access JustLend platform

JustLend can be accessed through JustLend.org/ from a browser. But for the purpose of this study, we will be accessing JustLend from Tronlink wallet mobile app. The reason is that we can easily connect our wallet where we did our assets to JustLend platform to use its services.
Please note that I have my assets in Tronlink wallet. All I have to do is to access JustLend from Tronlink wallet and connect my wallet to JustLend platform. Tronlink has a discover section where users can interact with DApps and connect to browsers. The following steps can be followed to connect my wallet to JustLend platform.

Steps includes:

• Open TronLink wallet mobile app and click on Discover on the bottom page.
• On the Discover Landing page, JustLend appear as a popular platform. You can click it to be redirected to JustLend platform or you can use the search bar and type in www.justlend.org and click enter to be redirected to JustLend platform. This can be illustrated in the screenshot below.

• After you have been redirected to JustLend platform from Tronlink wallet, on the landing page, click on the 3 horizontal lines at the top right corner of the page for a drop-down menu.
• After that, click on connect wallet to connect your Tronlink wallet to JustLend platform. As you can see in the screenshot below, I have successfully connected my wallet to JustLend platform.

JustLend Market

To access JustLend market, click on the 3 horizontal lines at the top right corner of the page for a drop-down menu. Then click on Market. This can be shown in the screenshot below.

Assets available on JustLend market includes TRX, USDT, USDJ, SUN, WIN, BTC, TUSD, ETH, JST, WBTT. Also, JustLend allows smart contracts for TRX, BTC, SUN, JST, WIN, ETH, WBTT, USDT, and USDJ. jTokens are distributed when a user supplies an asset to JustLend platform The corresponding Broken to the underlying asset is distributed to the user. For example, if I supply TRX to JustLend, I will receive jTRX to my wallet which can serve as collateral to borrow assets on JustLend platform.

The screenshot above shows JustLend market. The market currently has a total supply of $1.543 billion with BTC ranking first with 55.02%. Similarly, a total amount of $39.62 million has been borrowed and USDT ranked first with 47% of the borrowed asset.

Furthermore, from the market overview, BTC has the highest supply of $849.23 million while WIN has the lowest supply of $10.78 million. Also, USDT has the total borrowed amount of $18.65 million while BTC has the lowest borrowed amount of $80.64K.
Similarly, WIN has the highest supply APY of 22.52% while BTC has the lowest APY of 1.04%. Also, WIN has the highest borrow APY of 15.36% while USDJ has the lowest borrow APY of 0.23%.

How to supply assets on JustLend to generate income

Now, I will explain how to generate income on JustLend by lending my asset to earn interest. In this guide, I will be lending TRX to JustLend market protocol to earn APY. And from what we have on the market overview, the APY for supplying TRX on JustLend is 3.91%.

Below are the steps required to supply asset (TRX) to JustLend platform.

Steps includes:

• From JustLend homepage, scroll down to market and click on supply on TRX market as shown below.

• After clicking supply, a popup page appears to input the transaction details. This includes the amount of TRX to be supplied. In this case, I will supply 200TRX to earn 3.89% APY. The amount of TRX to earn depends on how long I leave my supplied TRX to the pool. So this means that this is flexible and I can withdraw my TRX anytime.
• After inputting the amount of TRX to be supplied, click on supply.

• After clicking supply, a smart contract call is initiated on your wallet. Click on *confirm to confirm the transaction. After that, sign the transaction using your Tronlink password.
• After that, a message will appear indicating that the transaction is successful.

Now I have successfully supplied 200TRX to JustLend platform to earn 3.89% APY on my supplied TRX. This can be seen on the dashboard as shown in the screenshot below.

The transaction details can be viewed on Tronscan.org. From what we have below, the transaction consumed 284 Bandwidth and 80,377 Energy. Similarly, 11.2 TRX was burned for Energy used in the transaction. Energy and Bandwidth were consumed because the transaction is a smart contract triggered transaction. Also, 0 TRX was burned for Bandwidth because the Tron network gives free 5000 bandwidth for 24hrs and this was used for the transaction. To avoid burning TRX for Energy, a user is required to freeze a certain amount of TRX to obtain Energy to smart contract trigger transactions.

To understand more about Tron Bandwidth and Energy, please refer to professor @sapwood post on Tron Energy and Bandwidth

Summary

• Platform: JustLend
• Service: Lending
• Asset supplied: 200 TRX
• Supplied APY(%) : 3.89%
• Type of supply: Flexible
• Transaction type: Smart contract triggered.
• Transaction Fee: 11 TRX which was burned for energy consumed.

In this post, I have successfully supplied 200TRX on JustLend to earn 3.89% APY and I will leave this supply for a long time to accumulate a good amount of interest. JustLend is a good platform to lend your asset and earn interest. The platform offers amazing APY and transactions are carried out very fast. Similarly, JustLend is a decentralized platform which means a user has control over his asset and the safety of their funds are guaranteed. Similarly, Transactions on Tron ecosystem is very low and this makes using JustLend platform relatively cheap while earning interest on your asset. All you have to do is to freeze some amount of TRX to acquire Energy to avoid burning TRX for smart contract transactions.

In conclusion, Cryptocurrency hasn't only changed our present-day finance, they have also offered us financial services to earn passive income without stress. Instead of leaving and holding your crypto in an exchange or wallet, I recommend capitalizing on any of the method explained by professor @imagen in his lesson to generate income for your assets. In this post, I have explained how we can generate income by lending crypto assets on JustLend to earn interest. JustLend is a decentralized market protocol built on Tron network that enables users to lend, borrow and earn interests.

Thank you professor @imagen for this wonderful opportunity.

Reference:
Dappradar