Where does DeFi yield come from?
DeFi yield comes from borrower interest, trading fees, and token rewards. Rates float and smart contract failures can erase deposits in uninsured pools.
By Vahe HakobyanRead
53 stories
DeFi yield comes from borrower interest, trading fees, and token rewards. Rates float and smart contract failures can erase deposits in uninsured pools.
By Vahe HakobyanRead
Yield farming moves crypto between DeFi pools to earn interest, trading fees and token rewards. The returns are not fixed and rewards are taxable.
By Vahe HakobyanRead
A DeFi collateral ratio is your collateral value divided by debt as a percentage. A minimum ratio set by the protocol can trigger liquidation.
By Vahe HakobyanRead
Crypto collateralized borrowing locks crypto to borrow stablecoins, and a fall below the liquidation threshold can force a sale of that crypto.
By Vahe HakobyanRead
A DeFi lending protocol lets people lend and borrow crypto without a bank. Smart contracts set rates and can liquidate a loan that falls short.
By Vahe HakobyanRead
You provide liquidity by depositing paired tokens into a DEX pool to earn trading fees. You need a compatible wallet, gas token, and both tokens.
By Vahe HakobyanRead
An automated market maker is a smart contract that trades crypto from liquidity pools. Prices follow a formula based on pool balances, with no order book.
By Vahe HakobyanRead
A DEX swaps crypto from your own wallet through smart contracts, with no account. You usually pay gas, approve if needed, and keep US tax records.
By Vahe HakobyanRead
Impermanent loss is the gap between an AMM pool position and holding the tokens. It becomes permanent when you withdraw or close the position.
By Vahe HakobyanRead
Liquidation in a crypto lending protocol happens when your health factor falls below one, often after collateral prices drop or debt grows steadily.
By Vahe HakobyanRead
A liquidity pool is a smart contract that prices swaps with a formula, and providers earn a share of trading fees. You need both tokens and gas.
By Vahe HakobyanRead
Decentralized finance is blockchain software that replaces banks with smart contracts. You connect a wallet and usually keep control of your own keys.
By Vahe HakobyanRead
Staking locks crypto to help a proof-of-stake network confirm transactions and earn rewards. In the US, rewards are generally taxable income when received.
By Vahe HakobyanRead
DeFi yield comes from borrower interest, trading fees, and token rewards. Rates float and smart contract failures can erase deposits in uninsured pools.
Yield farming moves crypto between DeFi pools to earn interest, trading fees and token rewards. The returns are not fixed and rewards are taxable.
A DeFi collateral ratio is your collateral value divided by debt as a percentage. A minimum ratio set by the protocol can trigger liquidation.
Crypto collateralized borrowing locks crypto to borrow stablecoins, and a fall below the liquidation threshold can force a sale of that crypto.
A DeFi lending protocol lets people lend and borrow crypto without a bank. Smart contracts set rates and can liquidate a loan that falls short.
You provide liquidity by depositing paired tokens into a DEX pool to earn trading fees. You need a compatible wallet, gas token, and both tokens.
An automated market maker is a smart contract that trades crypto from liquidity pools. Prices follow a formula based on pool balances, with no order book.
A DEX swaps crypto from your own wallet through smart contracts, with no account. You usually pay gas, approve if needed, and keep US tax records.
Impermanent loss is the gap between an AMM pool position and holding the tokens. It becomes permanent when you withdraw or close the position.
Liquidation in a crypto lending protocol happens when your health factor falls below one, often after collateral prices drop or debt grows steadily.
A liquidity pool is a smart contract that prices swaps with a formula, and providers earn a share of trading fees. You need both tokens and gas.
Decentralized finance is blockchain software that replaces banks with smart contracts. You connect a wallet and usually keep control of your own keys.
Staking locks crypto to help a proof-of-stake network confirm transactions and earn rewards. In the US, rewards are generally taxable income when received.
You’re all caught up