Thread by @thekriskay

Staking?
Lending?
Liquidity Mining?

Here’s a list of the strategies people use to make $$$ in DeFi

[A master thread 🧵]

1/8

2/8
Term: Lending
Goal: Passive interest income

- Lending = hands free interest
- Low risk
- 3% - 20% APY possible
- Stablecoins most worthwhile
- Withdraw funds any time.
- NOT THE SAME AS STAKING

Crypto banks ( @AaveAave & @compoundfinance ) lend your assets 4 you.

3/8

Term: Liquidity Pools (LP)
Goal: passive income

- Dec. Exchanges
- Powered by Pools
- Trading pair pools (i.e ETH / DAI )
- Any1 can add a pair to a pool
- Get rewarded from swap fees
- Risk: Impermanent loss

DEXs to LP on:
- @SushiSwap
- @QuickswapDEX
- @Uniswap

4/8

Term: Staking
Goal: Long-term passive income

- Usually means locking funds
- Staking = secure a network
- Staking = incentivizing liquidity for dapps
- Stakers = rewarded in the same asset
- Not all staking has time lockups

5/8

Term: Liquidity Mining
Goal: Take advantage of free rewards

- Dapps incentivizing users
- L.M. = rewarding users for depositing
- Earn their native token
- earn interest / fees on top of this
- Compound + AAVE v succesfull L.M. programs

6/8

Term: Yield Farming
Goal: Use your assets to earn more (risky)

- Yield = Assets generating income
- Using Dapps to arbitrage interest rates, rewards..
- Using custom strategies within DeFi
- Broad definition, basically aggressively using your crypto assets to get returns.

7/8

Term: Yield Aggregators
Goal: Outsource Yield farming

- Yield = Assets generating income
- Yield Aggregator = Mutual Fund
- Yearn Finance is a great example
- Deposit assets into Yearn vaults
- Yearn puts them to work in DeFi for you
- Harvest Finance does same thing

8/8

Term: Derivatives
Goal: Any asset on the blockchain

- Derivative = contract getting its value from underlying asset
- Buy stocks, gold, oil w/ crypto!
- Short selling, leverage buying, long...
- Prediction markets for events (polymarket, augur)
- Trade stocks w/ @kwenta_io