Lending
With DeFi, you may also opt to lend your crypto and earn interest on it. Most DeFi platforms and decentralized exchanges (DEXs) have a staking mechanism or liquidity pool where you can lock your crypto into the platform and earn interest. Lending helps DeFi platforms to continue facilitating transactions through increased liquidity.
Interest earnings within DeFi are surprisingly high, ranging anywhere from 5%-400%+ in yearly earnings. Comparatively, centralized banks usually offer interest rates as high as .07% yearly on savings accounts. It’s clear why DeFi is becoming so popular.
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