Invitation to Collaborate in Generating Passive Income for Public Goods
Author: @Shan Liu
Incentive: We are launching an initiative to generate passive income for public goods, leveraging low-risk investments and innovative financial strategies. This project aims to sustainably fund and enhance vital community services, and we invite partners to join us in this impactful endeavor.
Preview - ways to earn crypto income
| Category | Crypto Lending | Staking | Yield Farming |
|---|---|---|---|
| Difficulty | Easy | Easy | Hard |
| Overview | Lend your crypto to earn interest. Managed by lending platforms and DeFi protocols for easy reward earning. | Lock up a certain amount of cryptocurrency to support a blockchain network and earn staking rewards. | Engage in DeFi to earn high rewards through various strategies, often involving multiple protocols simultaneously. |
| Pros | - Low Barrier to Entry: Starting is straightforward and requires minimal effort |
Compound Interest: Earn compound interest on lent assets with DeFi platforms like Compound. | - Easy to get started: Less resource-intensive than mining, supported by many platforms and wallets.
Stable earnings: Typically more stable and reliable than other forms of passive income.
Compound interest: Rewards automatically compound, leading to significant asset growth over time. | - High Rewards: Potential for very high returns, with many DeFi protocols offering lucrative incentives.
Customization: Flexibility to use various strategies and platforms to align with personal financial goals. | | Cons | - Platform Risk: Essential to research platforms thoroughly due to risks like bankruptcy (e.g., Celsius, BlockFi) leading to loss of access to holdings.
Low Protections: Many platforms are unregulated with limited safeguards for participants.
Illiquidity: Withdrawing funds can be challenging, often involving long waiting periods. | - Percentage of Investment: Rewards depend on the amount staked, requiring significant investment for substantial passive income.
Regulatory Risk: SEC's stance on staking services as 'unregistered securities' affects availability in some jurisdictions.
Liquidity: Locking up holdings for a set period can cause issues if immediate access is needed. | - Protocol Risks: High risk of scams and fraud, requiring thorough due diligence on protocols.
Impermanent Loss: Risk of crypto value decline while locked in a DeFi protocol.
Technical Expertise: Requires a solid understanding of DeFi, smart contracts, and market dynamics, not ideal for beginners. |
“Yield farming platforms may offer high returns but the required initial investment is usually also higher than staking platforms. This is what makes yield farming ideal for investors who have the necessary liquidity and risk tolerance to invest in these protocols.”
LXDAO, currently 210,000 USDT and upcoming 60k OP?
Staking: Lido
Restaking: EigenLayer
Lending: AAVE, Compound
Yield Farming: Uniswap, Curve
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