Decentralized finance concept; how to make money from DeFI
DeFi concept
Eliminating the need for intermediate parties to process transactions has become a common trend with the inception of the decentralized financial system (DeFi) using smart contract written codes which work 24/7 365 days none stop has helped minimize customer dependency on centralized financial agencies. In the centralized system, time is a limiting factor daily opening/closure period needs to be specified making it difficult for customers to be in touch with respective financial representatives 24/7 which DeFi is here to tackle.
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Generally, we can see decentralized finance is time immune which is a round-the-clock operational executed transaction between users without the need of an intermediate end-user, given this written code in form of programmable smart contracts that are used for processing users' transactions.
Defillama tracks the total value of locked up DeFi assets in USDT a total of $213.12 billion have been locked up in the system since its inception in early 2020 as of time of writing this post.
The graphical representation of total value locked (TLV) shows investors' input in terms of capital on DeFi which is considered a risk-free system for users to earn crypto through various means of locking up their assets in a system pool or liquidity farm income generated from DeFi has attracted investors to pull their resources on the rewarding system.
Earning on DeFi
There are several DeFi systems with attractive APY where crypto users could put their ideal token into use to generate income, ethereum-based blockchain DeFi Uniswap is known for its popularity and PancakeSwap a BSC based DeFi are interesting DeFi Dapps users can earn from.
Hodl a crypto term used instead of saying hold here interested users can make proper research on any DeFi token the likes of $Cake token (PancakeSwap) $Aave (avalanche ) uniswap on ethereum investors can hold these token base on their investment strategy for future price increase we have seen significant performance ration on DeFi based token.
Staking increases accountability and trust among investors to hold a project token long-term most DeFi platforms are based on staking, users can choose the number of days/months they will be locking up their staked token these will determine their earning, node validators get rewarded for staking and also participating in transaction validation on proof of stake consensus.
Lending With DeFi users who hold a specified amount of locked up tokens on the platform can be able to lend tokens and pay interest in return.
Liquidity fees generated from liquidity pairs on DeFi are shared among liquidity providers BNB/Cake pair providers get a certain percentage share on every BNB/Cake transaction executed by other traders.
Final thought
Decentralized finance systems present users with multiple income-generating opportunities this does not make the system 100% risk-free as some DeFi systems have suffered hacking attacks from malicious users leaving lots of investors on the losing end despite being a decentralized system it has its limitations interested users are therefore advised to carry out proper research before using real capital to invest.
Wox-DeFi a decentralized exchange with decent APY check out their discord group to stay updated with their latest info and guides on how to start putting your ideal crypto into work
https://discord.gg/C3asZDt56f