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9 EASY WAY TO MAKE MONEY USING DEFI PROTOCOL

Updated: Oct 30


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Hey! If you’re curious about earning with DeFi, here’s a friendly, simplified rundown. Remember: DeFi is risky, so only use what you can afford to lose.

1. Liquidity Providing (Yield Farming)

Deposit token pairs into pools (like ETH/USDC) and earn fees plus rewards.

  • Platforms: Uniswap, Curve, PancakeSwap, Balancer

  • Tip: Start with stablecoin pairs to reduce risk.

  • Risk: Impermanent loss if token prices change a lot.

2. Staking

Lock your tokens to help secure a network and earn rewards.

  • Options: Ethereum, Lido, Rocket Pool, Aave

  • Tip: Use liquid staking to keep flexibility.

3. Lending and Borrowing

Lend your crypto to others and earn interest.

  • Platforms: Aave, Compound, MakerDAO

  • Tip: Stablecoins like USDC/USDT are safer and steady.

4. Yield Aggregators

Let platforms automatically move your funds for max returns.

  • Platforms: Yearn Finance, Beefy, Convex

  • Tip: Great for hands-off investors.

5. Stablecoin Farming

Stake stablecoins for low-risk returns.

  • Platforms: Curve 3pool, Aave, Anchor Protocol

  • Tip: Start here if you’re cautious.

6. Arbitrage Trading

Buy low on one exchange, sell high on another.

  • Tip: Requires tech skills; fees and bots can eat profits.

7. Governance Token Farming

Join new protocols early and earn governance tokens.

  • Platforms: Track via DeFi Llama, DefiPulse, Discord communities

  • Tip: Only invest what you can afford to lose.

8. NFT-Based DeFi (NFTfi)

Use NFTs as collateral or earn from NFT liquidity pools.

  • Platforms: NFTfi, BendDAO, JPEG'd, Sudoswap

  • Tip: Stick to well-known NFTs.

9. Real Yield Protocols

Invest in protocols that pay actual revenue, not just token emissions.

  • Platforms: GMX, Synthetix, Camelot

  • Tip: Focus on sustainable returns.

Getting Started

  1. Set up a wallet (MetaMask) and secure your seed phrase.

  2. Pick a network (Ethereum, Polygon, Arbitrum, BSC).

  3. Get stablecoins for safer entry.

  4. Start small ($100–500) and experiment.

  5. Do research – check audits, TVL, and community feedback.

Safety Tips

  • Use hardware wallets for large funds

  • Never share seed phrases

  • Double-check contract addresses

  • Start on testnets first

  • Diversify and track gas fees

  • Stick to audited protocols

Realistic Returns

  • Low risk: 3-8% APY

  • Medium risk: 8-15% APY

  • High risk: 15-100%+ APY

Tools to Track Your Portfolio

Bottom line: DeFi has lots of opportunities, but also risks. Start small, learn as you go, and only invest what you can afford to lose. Stay updated and have fun exploring this new financial world!

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