DeFi: How to get 50% APY
The headline got you to read. Mission accomplished, but it’s not clickbait. There are opportunities right now to make 50% APY. Before I go down the rabbit hole, let me tell you a bit about myself. Also, this article is for individuals who do not know much about DeFi. I plan to write several articles about DeFi, starting at the top and then dive down into the nitty-gritty.
In the past year, I spent more time on Crypto than anything else in my life. Some may say it’s a sad reflection, but I like to think I trained for the economy’s future. The past year I completed an MBA largely locked down in Ireland. I spent a significant amount of time wondering wtf did I do. After a few wine clubs, and dozens of shows I decided to jump into crypto.
Fast forward to this summer, I was fortunate to get chosen to write a white paper in partnership with a London Crypto Venture Capital Firm (sounds sweet, right).
I was no expert in Crypto (and still am not). My first dabble into Crypto was in 2019 when my brother and I bought a few hundred thousand shares of DogeCoin…as a joke. RobinHood only offered three cryptoassets (if you can call Doge security), and Doge was $0.00001 or something per share. I sold my shares a few months later for a profit of $20 (total). I thought I mastered the system and likely took my free money to a bar where it covered a fraction of my bar bill. Last September, I picked Crypto back up again and began to mess around with Binance and saw all these different tokens. I bought and sold tokens but honestly did not know much about them. BadgerCoin sounded pretty cool, and who wouldn’t like to buy something named PanCake. Looking back on it now, I honestly had no idea what I was doing.
Decentralized Finance (DeFi). DeFi sounds like a glorious acronym or something futuristic. To start, DeFi is the fastest-growing segment in the crypto sphere. In the last 12 months, the industry went from $1B in June of 2020 to $60B today (it was higher in May before the sell-offs). I can talk more about total value locked (TVL) in future posts. Now it’s also one of the most controversial industries. United States regulation is attempting to step in, venture capital firms are attempting takeovers, people are running away with millions, and I lost about $100 in a matter of hours first dipping.
DeFi offers potential investors an alternative to earning a yield on their crypto assets. Do you have a bunch of different coins sitting on an exchange? DeFi is a way to earn interest and other rewards, just like with a traditional bank account. However, instead of earning 0.2% interest rate like in a conventional checking account, you can earn 10%, 20%, 50%, and even 100% APY. Those interest rates sound a bit too good to be true…
Over the next few weeks, I will write about my own experience in navigating DeFi.
