6 Easy Ways to Earn with DeFi in 2021

January 26, 2021


Earn crypto on DeFi

Nearly 200,000 readers learned how to earn cryptocurrencies through our popular blog, since 2017. Now that DeFi is poppin’, it’s time to help you earn crypto on DeFi. And after you finish this one, you might want to learn how to earn with NFTs as well.

If you have been with us throughout the years, you may have noticed that the industry is changing rapidly. New technologies and tokens are being introduced daily, and regulators are trying to keep pace with the growth of the industry. 

DeFi, short for “decentralized finance, is a term that recently gained a lot of attention. Naturally, our readers are interested in making a few bucks from home. So from now on we’ll be focusing on how and where you can earn with DeFi. We’ll show you the best ways to earn with DeFi, how to avoid potential traps along the way.

But first things first: let’s explain what DeFi is and why it’s such a big deal.

Airdrops in 2024: Complete Airdrop Farming Guide

What is DeFi?

DeFi stands for decentralized finance and represents a shift from traditional, centralized financial systems to an ecosystem without intermediaries such as banks, brokerages, or exchanges. This ecosystem relies on smart contracts, which are built on blockchain, with Ethereum being the most common. DeFi has increased in recent years. According to Forbes, as of January 2021, approximately $20.5 billion was invested in DeFi. 

But how does DeFi actually work? With the help of so-called DApps (decentralized applications), which perform financial operations on blockchains and through smart contracts. These smart contracts are run by a community of developers and programmers using open-source software.

So, the philosophy behind DeFi sounds excellent. But how can you actually earn with it? In this blog post, we’ll answer that question and show you six ways to earn with DeFi in 2021 safely. Let’s dive in.

1] Earn With DeFi Airdrops

Airdrops have always been popular within the crypto community. Who doesn’t like free tokens rolling into their wallets? The good news for all fans is that DeFi space is rich with airdrops you can start collecting with minimum effort. For instance, a decentralized exchange Uniswap distributed 400 of its newly minted tokens to each address that had used its protocol and announced it would ultimately issue and distribute 4 billion UNI tokens to the community over the next four years.

So, how to find and collect DeFi airdrops? All you need is a wallet, enthusiasm, and a bit of research skills. Or simply keep an eye on the Airdrop Alert website, where you can find the list of current and upcoming airdrops, including the DeFi tokens.

One lucky airdrop hunter earned over $1,500,000 with the 1INCH airdrop. Maybe you missed this one, but the exchange still has an active referral program in which you can participate.

Will you be the next airdrop millionaire?

We dove a little deeper in ways to earn with these DeFi giveaways in a next blog.

2] Yield Farming

earn defi yield farming

Do you remember the above-mentioned smart contracts? Well, besides running DApps, these magical computer programs have other functions as well. One of them is yield farming that allows you to lend your funds to others and, in return, earn fees in the form of crypto. Yield farming is typically done using ERC-20 tokens on Ethereum. 

So, how can you earn with yield farming? There are various platforms and protocols that you can explore. One of the most popular is Compound, where anyone with an Ethereum wallet can lend and borrow assets. Maker DAO is another one. You can simply open a Maker Vault and lock collateral assets. And we have to mention Uniswap once again. This decentralized exchange protocol allows trustless token swaps.

3] Liquidity Mining

liquidity mining

Liquidity mining represents a direct result of yield farming. The difference is that with liquidity mining, you get tokens as a bonus besides the usual returns. Let’s explain in more detail. Here is a great example provided by Hackernoon

“Imagine that yield farming is the reward you are getting from providing your service (lending your tokens for a period of time), and the newly generated tokens are the result of your mining (participation on the platform). These newly generated tokens are usually native tokens of the DeFi platform you are using, and it can be the governance token of that platform. Platforms are trying to stimulate users to use their services and, as a token of appreciation, they are giving you a seat at the table. Each governance token counts up as a vote for deciding the future of the platform. Of course, most tokens hold value in themselves, and they can be sold on the open market at any given time. Your decision is always yours.”

Here’s a list of platforms that offer liquidity mining.

4] Earn With DeFi Loans

earn defi loan

DeFi loans are one of the most popular sectors of the crypto ecosystem. They allow users to lend their assets to others and, in return, earn interest on these assets. A user can quickly take a loan without disclosing its identity to a third party, thus skipping all complicated procedures and checks. 

So, what are some of the platforms where you can lend your assets? There are a couple of them. If you’re interested, check out Aave, Cream Finance, and Notional. Or have a look at this blog with more details.

5] DeFi Trading

earn defi trading

Calling all avid traders of the crypto ecosystem. Trading on decentralized exchanges (DEX) has a range of benefits, and it’s worth checking out. For instance, did you know that when trading on a decentralized exchange, the entire control of the wallet remains in your hands? That’s why DEX is far more secure than centralized ones. Another advantage is that you don’t have to provide confidential information such as passport, ID, or driving license. This will save you the headache of losing confidential data. Lastly, a decentralized exchange carries no infrastructure risk when executing trade orders.

6] Play Games & Earn

earn defi game

Have you heard about CryptoKitties? Unless you’ve been hiding under a rock somewhere, you should know about it. To remind you, it’s a mega-popular game on Ethereum that allows players to purchase, collect, breed, and sell virtual cats. The main purpose of the game is recreation and leisure. But with DeFi, such games can become more than that. They can become a way to earn as well. For example, DeFi Social is an art gaming platform backed by the first gaming token called DFSocial. The platform merges the services of DeFi protocols such as staking and farming with gaming. Cool, don’t you agree?

We did some research and found atleast 5 games you can play & earn with on DeFi.

Curious which ones? Just click here.

Let’s stay in touch

There you go, six easy ways to start earning with DeFi in 2021. Interested in finding out more about these topics? We have good news. In the upcoming weeks, we’ll cover each topic individually and more comprehensive. We’ll show you the platforms, best practices, and traps to avoid

Just don’t forget to subscribe to our newsletter to stay up-to-date.


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