Defi is a new platform that allows users to earn passive income by lending their digital currencies to projects such as stablecoins and Maker DAO. The company behind the project, which also goes by the name “Defi” or “Defi Labs,” has developed a unique technological solution for creating passive income from digital assets without exposure to volatility. In this article, we’ll explore how it works and why it might be worth using for your own investments.
Defi basics
Defi is a platform that allows you to invest in passive income without the hassle of setting up your own company. It works by giving you access to a variety of companies that need funding and helping you find the right one with which to partner. Depending on how much you invest, these companies give you the right to vote and dividend payments. If a company makes money, it’s because of your investment!
By building out this network of partnerships and investors, Defi aims to provide better service than traditional crowdfunding sites like Kickstarter or GoFundMe. They also have plans for their own currency, called DEFIs, which participants can use as rewards for each other at events like parties or conferences.
Stablecoins
Stablecoins are cryptocurrencies that are connected to a stable asset. This means that their value stays the same compared to the dollar and other fiat currencies, while the value of most cryptocurrencies changes a lot because they are open. Stablecoins are an alternative to investing in fiat currency and offer some advantages, including:
- They’re an excellent way to hedge against volatility
- They can provide safety for your funds
In order to buy into a stablecoin, you must first create an account with Defi Exchange, one of the most trusted crypto exchanges in the world. Once you’ve created an account (which requires only basic information), you’ll be able to deposit dollars or euros into your Defi Exchange wallet using your bank account or credit card. Then you’ll be ready to purchase any number of currencies from our online marketplace.”
Compound
Compound is a platform that allows you to earn interest on your crypto assets.
The first way to earn interest with Compound is by lending your cryptocurrency holdings to the platform. The second way is via a short-term lending option—you can lend cryptocurrency for up to two weeks at a time, and earn interest through this loan as well.
Maker DAO
MakerDAO is a decentralized organization that issues tokens backed by Ether. This allows you to create a bond between the value of ETH and another currency. The fundamental advantage of Maker DAO is that there are no fees associated with creating or selling your own tokens on the platform. You were making it nearly as simple as using an app store or marketplace to sell apps or games for profit.
