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4 Ways DeFi Can Generate Passive Income

In this article, you were going to see the 4 ways to get passive income through Decentralized Finance DeFi

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4 Ways DeFi Can Generate Passive Income

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  1. 4 Ways DeFi Can Generate Passive Income Staking Staking Staking is the method by which you lock or stake Staking is the method by which you lock or stake tokens into a smart contract and gain more of the tokens into a smart contract and gain more of the same token in rescue. The token in question is usually same token in rescue. The token in question is usually the native asset of the blockchain, such as ETH in the the native asset of the blockchain, such as ETH in the case of Ethereum. case of Ethereum. Become a liquidity provider Become a liquidity provider Decentralized exchanges such as Uniswap & Decentralized exchanges such as Uniswap & SushiSwap support swaps between token pairs, like SushiSwap support swaps between token pairs, like ETH and USDT. This liquidity comes from pooled ETH and USDT. This liquidity comes from pooled tokens belong to liquidity providers. tokens belong to liquidity providers. Yield farming Yield farming When you LP in a DEX like Uniswap, you will acquire When you LP in a DEX like Uniswap, you will acquire tokens contributing your pool share. These tokens tokens contributing your pool share. These tokens can then be locked into yield farms, which are can then be locked into yield farms, which are effectively DeFi protocols that reward you with effectively DeFi protocols that reward you with more of the same token or with a different token. more of the same token or with a different token. Lending Lending Lending platforms pay users an APY for locking their Lending platforms pay users an APY for locking their assets into a smart contract. These tokens are then assets into a smart contract. These tokens are then utilized by borrowers, who pay interest, a portion of utilized by borrowers, who pay interest, a portion of which is returned to the lender. which is returned to the lender. www.cryptocurrencyscript.com

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