It is clear that DeFi continues to grow. And here are TOP opportunities to earn in DeFi (in my opinion, of course)
1. Decentralized lending
Decentralized lending removes the barrier between you and the money: no third party needed, no approval process. Where do you make money here: you get interest from the liquidity provided to the credit pools, and you also buy the collateral positions of other platform participants at a discount when their collateral assets are liquidated. Liquidation occurs when the amount of collateral for a loan falls below the acceptable threshold – the fact is that the collateral for a loan is always excessive, and due to this, the risk of loss of funds for the lender is eliminated.
2. Arbitrage trading
Arbitrage in DeFi, as in any other market, is an operation that is both low risk. The arbitrage trader works on the difference in price, and we can safely say that having mastered the intricacies of this, you will get a real profession with a guaranteed income – however, like most people work with a stable salary, it is not rewarded as generously as more risky strategies on the market.
3. DEX and liquidity mining
Decentralized exchanges have been an absolute trend in the crypto market over the past two years. How do you earn: in addition to directly exchange trading, DEXs provide their users with the opportunity to become a market-maker and receive a percentage of the platform's commission for exchange operations. The exchange carries out transactions with your money, you become a liquidity provider and receive real passive income. Its size is different for each exchange: on UniSwap, for example, the commission of liquidity providers is 0.3% from each trade.