Interacting with defi protocols requires a compatible web wallet such as MetaMask. After visiting the web app of the protocol in question, such as Yearn Finance, you will be prompted to connect your MetaMask wallet to the site by clicking the verification message that pops up. Thereafter, any time you wish to interact with the Defi… Continue reading How to interact with defi protocols
Popular Defi protocols
Decentralised finance has around a dozen well established protocols that can be regarded as the “big banks” of Defi. The difference, of course, is that you don’t have to custody your funds with these projects, as you would when depositing assets into a bank account: rather, a Smart Contract controls the whole process. Provided the… Continue reading Popular Defi protocols
Risk/Reward Trade-Off of DEFI
While tradfi APYs have trended towards zero (some banks even now provide negative interest on savings), Defi offers double or even triple-digit percentage returns. The attraction is obvious: who wouldn’t want to double their money in a year simply through locking it into a decentralised finance protocol and letting time take care of the rest?… Continue reading Risk/Reward Trade-Off of DEFI
Getting started with DEFI
What you’ll learn What DEFI is What you can do with DEFI The practical steps involved for the main DEFI functions The risks & drawbacks In its basic form, Decentralised Finance (Defi), gives you access to a range of financial services, from the simple kind that would normally be provided by your high street bank,… Continue reading Getting started with DEFI
Future Of Crypto Banking
CEFI is one of the fastest growing areas of crypto as the large numbers of new crypto holders realise that there are familiar banking services on offer, with very attractive rates compared to their traditional savings accounts. Despite this growth the sector is relatively new, and because CEFI services are custodial – you aren’t in… Continue reading Future Of Crypto Banking
How to take Out A Crypto Backed Loan
Research the rates charged on loans; sites like Coingecko and Coinmarketcap are helpful. Decide what crypto collateral you want to provide & what fiat/Stablecoin you want to borrow. Use an onsite tool to calculate how much you can borrow against your crypto.. You can reduce the interest rate by holding the Platform Token, the more you own, the… Continue reading How to take Out A Crypto Backed Loan
Steps to Get Started with CEFI
Now you should have enough information to understand how CEFI works, here are the steps to get started. Decide what is important to you and DYOR (do you own research). You might just want to earn passive interest, get the best cash back deals, get interest on a specific cryptocurrency or the best loan deal.… Continue reading Steps to Get Started with CEFI
Popular CEFI Providers
These are a selection of popular providers. Learn Crypto doesn’t endorse any of them. They all have active communities on Reddit, Twitter and Medium where we encourage you to DYOR if you consider using any of them. Their interest rates are likely to be the biggest differentiator but be aware that some rates are offered… Continue reading Popular CEFI Providers
Collateralised Crypto Loans
This is less complex than it sounds. If you approach your traditional bank for a loan, they’ll assess your credit history, want a lot of information about your financial circumstances and give you plenty of forms to fill. Loans are either secured against something (a house) or unsecured and reliant on your ability to repay… Continue reading Collateralised Crypto Loans
Interest Rates & Platform Tokens
In a separate article about earning passive income we explained how interest rates are set in traditional banking – via a central bank. Crypto doesn’t have a central bank, instead rates are determined by demand. CEFI providers loan out deposited funds charging interest; the greater the demand for borrowing the greater the interest for savers. This is… Continue reading Interest Rates & Platform Tokens