Defi Offers One Different Ways to Earn. Let's See it Together
Defi simply put is decentralized finance. A system that there are no third party involved in the transactions. Photo by Dillon Wanner on Unsplash
They are activities that takes place in the systems Which eliminate the inscriptions of the third party for the transaction to appear anonymous. In this kind of system what is mostly obtainable is P2P system where the sender and receiver transact directly with each other without interference.
In the usual which is the banking system that is known by all there agencies that is official established to assist clients in carrying out transactions and take up loan when necessary and there are law established to govern those processes in which if bridged the offender pay heavily for it.
The defi system works by programs that run in the computer and it is done in the blockchain.
There are several ways one can earn through the Defi system they include,
One May decide to give out his crypto to a platform and in this case the token is given out to other persons who may wish to borrow it this process is guided by a smart contract and at the end of the periods he automatically gets what is due to him depending on the amount he offered.
Through the APY system
One can decide to stake his crypto in his wallet and be earning some percentage at the end of the month. Every coin has a particular percentage that it pays it's subscribers but in anyway depositing crypto in one's wallet and staking it is better than just leaving it in in the wallet and much better than putting it in the bank because most times we get nothing in return. I remember those days that my mum bought some shares and at the end of the year what comes to her is so ridiculous. Especially for those who want to hold the token for a longer time the APY system will enable them in in diverse ways.
Engaging in yield farming
Just as in the real world that there is planting season and harvesting season so also in the crypto world so one can offer a particular amount to be locked up for a period in that process it has been planted and the person is not expected to remove it til the end of the period. Some may last for a month or years as the case may be so during this time the token owners use the tokens for what they wish to so at the time of period which is harvest they are been paid according to the percentage that was agreed at the initial.
One decides to lend his crypto to The Exchange and and will be rewarded for it in this case the Miners are rewarded in the native token of the exchange which ae can trade to any token he wished to.
Conclusively, before engaging in the Defi earning one have to make his own research especially now that the market is bearish and a lot of tokens are going into extinction.
There is also the risk of Falling Into the wrong hands so therefore one have to be very careful before investing into any projects. Many scammers have learnt the act of crypto earnings and they have come forward to develop a lot of projects which if one is not fortunate he can enter into their hands.
I appreciate you for going through my blog and your support do stay safe.
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