2 ways to EARN PASSIVE INCOME with defi

Disclaimer : not financial advice

Defi (decentralised finance) is great for earning passive income, thanks to the fact that the majority of the opportunities to generate interests , are flexible, and so not fixed.
You can, therefore , draw your money whenever you want (even if sometimes there are penalties, or fees applied to the money allocated, because of the anticipation of withdraw, usually of 24 to 96 hours)

So, here 2 methods to earn passive income with defi :

1) STAKING

Staking means allocating, delegating or validating , the coin you have , to generate interests (I'm referring to the on-chain staking) .
The staking is the main feature of PoS (Proof of Stake) blockchains , and it is useful to support them and so for its security.

Staking is FLEXIBLE, and pays interests with the same kind of Liquidity (coin) you staked.
So , if you stake LUNA, you are going to receive it as rewards.
We can say therefore, that , Staking , it's a great way to accumulate the coin you want to hold, by making it working for you.

Staking makes you being EXPOSED to the coin staked, so it's good if you want to stake a coin you're invested in, because you will be able to GAIN MORE from your investment ;
keeping the SAME LEVEL of EXPOSURE and MAXIMIZING the potential RETURNS.

Additional benefits :

• Staking allows you to be ELIGIBLE for AIRDROPS (like for all the Cosmos-ecosystem’s airdrops)

• you can also find staking as a "LIQUID DERIVATE PRODUCT" also called "LIQUID STAKING" ;
  This allows you to be PROVIDED with a LIQUID STAKED ASSET (the traditional staking system does NOT allow your staked liquidity to be used. It will be simply "deposited" and "still", even if flexible) you can use, to generate further interests. You could, for example , put the liquid staked asset in a liquidity pool
• Staking gives "POWER". You can, in fact , (in cases like Algorand) participate in the governance, and so having "VOTING POWER" on proposals and decision of a project

2) LENDING

The second way to earn passive income is LENDING

In the Defi world you can make money by Lending your cryptos.
You get and APR (not compounded) percentage, that is variable, depending on the ratio between lenders and borrowers.
You can easily lend your crypto in money markets (lending and borrowing protocols) like Anchor protocol or Aave.

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