Best DeFi protocols for passive income

[JohnnyDoe]

List your preferred ones!

Mine are:
Vires.finance
Venus.finance
Atlantis.loans

 

[jakubko666]

Terra Anchor Protocol is my way to go for small gains with no work

 

[uplana]

What's exactly this is about, any link we can get for more information for dummy's ?

 

[Silvio]

DEFI, because who wouldn't want to put his hard-earned cash into something called "Atlantis.loans" or "Virus.finance" ...

 

[JohnnyDoe]

What's exactly this is about, any link we can get for more information for dummy's ?

DEcentralized FInance, platforms governed by smart contracts, owned by their own participants. Another step towards the irrelevancy of banks. You can find plenty of information on the web, this is one of the biggest innovations of 2021 and of the last 40 years together with cryptocurrency.

DEFI, because who wouldn't want to put his hard-earned cash into something called "Atlantis.loans" or "Virus.finance" ...

If you trust clowns working in banks more than yourself, then keep putting cash into banks

 

[EuroKiss]

Crypto in general and DeFi specifically are a new way of thinking about finance AND technology, meaning that you cannot REALLY understand the first w/o also understand the latter. For this reason, DeFi is not well understood from typical finance guys, while nerds got problems to grasp the finance part hence just rely on the tech. I suggest to closely follow projects like the last rebase-DAO - mainly TIME - amd see how they work - financially AND technically - before even thinking of investing in DeFi.
Said that, we are probably seeing new finance interactions that could side - or even in the very long term substitute - the more traditional banking and investment world. Strongly suggest watching some vids in YouTube about “DeFi Ohm forks” or “DeFi rebase DAO”, the Calculator Guy is a good starting point for all the APY and financial part.

 

[JohnnyDoe]

DEfi is also for borrowing of course, not just for earning passive income.
I like this protocol Liquity | Interest-free Borrowing on Ethereum which allows to borrow for a fixed % fee and no interests against ETH as collateral. If you do your homework you can use it to earn an extra 5-10% through it (no interest on collateral + APY on borrowed stablecoin - fixed fee).

 

[Silvio]

If you trust clowns working in banks more than yourself, then keep putting cash into banks

There are 1000s things you can put money in, it's not a binary choice between banks or online ponzi scammers

But regardless of that, there is a phrase fitting for "DeFi passive income" and it's "picking pennies in front of a train".

You can also sell put options if you want to generate 30-70% yield per year on your money, and it will all work very well until the stock crashes and you end up holding the bag. At least in the case of a stock you can buy a piece of a company that actually does something useful and is not just a ponzi

 

[fasu]

My favourite is beefy.finance, support various networks and autocompounds in the same tokens, so you can forget more than in other places.

 

[legrant]

Terra Anchor Protocol is my way to go for small gains with no work

Till LUNA crashes and their "stablecoin" backed by thin air plummets.

 

[EuroKiss]

Till LUNA crashes and their "stablecoin" backed by thin air plummets.

Technically, what really backs any fiat currency right now - thin air apart - is the capacity of the government to enforce tax collecting through the same issued currency.

 

[legrant]

Technically, what really backs any fiat currency right now - thin air apart - is the capacity of the government to enforce tax collecting through the same issued currency.

What's your point?

 

[JackAlabama]

What's your point?

That the fiat system is a ponzi in itself with inept govs trying to prop it up?

 

[EuroKiss]

That the fiat system is a ponzi in itself with inept govs trying to prop it up?

This is the point.

 

[Silvio]

That the fiat system is a ponzi in itself with inept govs trying to prop it up?

Ponzi that survived for 100 years* and is backed by military, ships, etc.
Meanwhile Crypto can't even go a few months without imploding

Let's see how many of these DeFi ponzis can survive after another 30% drop

 

[JohnnyDoe]

Ponzi that survived for 100 years* and is backed by military, ships, etc.
Meanwhile Crypto can't even go a few months without imploding

Let's see how many of these DeFi ponzis can survive after another 30% drop

100 years? Please check the value of $1 100 years ago.
Also check the Turkish Lira, Bolivar, Zimbabwean Dollar, Deutsche Mark exactly 100 years ago etc.
Do you really think fiat is safe?

 

[legrant]

This is the point.

Yeah, but how does it have anything to do with what I was talking about?

 

[EuroKiss]

Yeah, but how does it have anything to do with what I was talking about?

After Nixon, Fiat got fundamentals very similar to stablecoins, meaning tiny air support. Actually, most important challenge for stablecoins ain’t support but political/financial centralized control.
BTW in this forum I see very ridiculous these wars between pro and anti crypto: they both are just investment vehicles with pros and contras and it is as we should look at them. I personally invest in both and lose money exactly in the same way.

 

[legrant]

After Nixon, Fiat got fundamentals very similar to stablecoins, meaning tiny air support. Actually, most important challenge for stablecoins ain’t support but political/financial centralized control.
BTW in this forum I see very ridiculous these wars between pro and anti crypto: they both are just investment vehicles with pros and contras and it is as we should look at them. I personally invest in both and lose money exactly in the same way.

I still don't see how it's related to what I said.

And I don't agree with that, main challenges for stablecoins are two:
1) That each token is actually backed by $1
2) Regulation

My first reply was referring to the fact that UST is not backed by USD in a bank account, it's an algorithmic stable coin and there have been a couple of those before that have crashed before. Furthermore, the MakerDAO founder said that it's basically a Ponzi.

 

[EuroKiss]

My first reply was referring to the fact that UST is not backed by USD in a bank account, it's an algorithmic stable coin and there have been a couple of those before that have crashed before.

Wrong. USDT is a stablecoin backed by an equivalent in usd, treasury bonds and other papers. DAI and other are backed by a basket of other cryptos.