Starting with $800, You can Earn $10,000 a Month Passively Using DeFi

I felt there has to be another method to earn money in the Crypto industry after making 2–3x on a handful of my crypto investments, last year and seeing it all go away because I was Diamon-handed.

The majority of experts and connoisseurs will advise you to purchase and hold. Yes, it is an excellent plan. But how can we generate money in the meantime? How can we maintain filling our bags while our money is limited?

I'm tearing up my first DeFi project, digging and digging. Anchor protocol is a fantastic initiative that pays out roughly 19 percent APY. That was great until I discovered I was only going to make $16 per month on my $1,000 investment.

I kept investigating and discovered that there was more. I made it to Wonderland, and it was fun while it lasted. Until it crashed, I was averaging $50–75 every week, and my weekly income went from safe to sifu.

The first piece of advice I'd give myself is to diversify my interests.

What if I invested in ten "Wonderland" or passive income ventures, distributed my risk, and generated a ten-thousand-dollar passive income stream?

So I had this insane plan to start off with barely $800 in my bank account. TIME, THOR, POLAR, and TITANO were purchased. I'm now averaging $80-$100 every week, but my objective is to expand it to 2.5k per week.

I go into detail about how I want to achieve it below.

The strategy is to play ten times for a total of ten thousand dollars.

"Save, invest, profit, rinse, and repeat," says the adage.

There are several methods to get passive money in DeFi land. There's a lot more than I can say in this space. The ones I'll be concentrating on are:

NODES

Nodes come in a variety of shapes and sizes, but in essence, they are servers in a decentralized network. Their primary responsibilities include maintaining consensus among other nodes, verifying transactions, and storing a copy of the blockchain.

Node-based passive income:

What they perform and how you are compensated varies from project to project. Let's take one of the most well-known, and one that I possess, THOR.

NAAS is a service provided by THOR nodes (Node as a service).

How it works is as follows:

1.25 Thor tokens are purchased (their native token).

You use your online wallet to authorize a contract (Meta Mask)

Create your node and give it a name.

They handle everything for you, take a cut, and you get your money.

Isn't it simple?

Simply to put things in context. At a cost of $150 per token, you spend $187.5 on a 1.25 THOR token. You get 0.008 $THOR every day, which is $1.2 per day or $8.4 per week.

Important: You cannot take your tokens back once you've created a node. You can only rely on the daily revenue you will receive after it has been formed. But, as you'll see below, this might be a positive thing.

Pros and Cons:

Pros:

It takes less time to return your original investment if the price rises. If Thor's price rises to $300, you'll be paying $16 every week instead of $8.

Because you can only get a percentage of your money back, this might assist with price stability and collapse.

While the project is running, you'll have a steady stream of passive revenue.

Cons:

If the price falls, the same thing happens. It will take you longer to break even, and your weekly earnings will decrease.

These initiatives rely heavily on developers and the community; if they fail to provide, the project will perish.

Rugs and frauds are more common in DeFi, so if you aren't willing to put in the time to study and investigate, this isn't the place for you.

Platforms for Dao and automatic staking

Most of these projects are sinking with the crash of Wonderland, but they may shine again in the future. The concept behind Decentralized Autonomous Organizations is that you invest in their project by purchasing their tokens, and they utilize the money to invest in other projects in a relatively "intelligent" manner. It functions similarly to a large investment fund, but with strange names and in DeFi. Some even employ a snapshot system, in which the community votes on how the treasury funds should be spent.

You will receive rewards in their token as an incentive. The problem is that most of them are paying out far too much APY, resulting in an inflationary cycle.

In addition, unlike Node projects, you may withdraw and sell all of your tokens. Any negative news might result in a massive price drop.

My strategy is to discover the most trustworthy enterprises, spend a little amount of money, and receive weekly rewards so that I may recoup my initial investment as quickly as possible.

I'm still in Wonderland with a modest job and in TITANO at the moment.

Among the most well-known are:

• Hector DAO

• ROME

• KLIMA

• Staking

The proof of stake (PoS) consensus technique is most typically employed in staking to support a blockchain network. By committing your crypto assets to that network, you may participate in transaction validation.

During transaction validation, staking lets investors earn rewards right away.

Apart from possessing the coin/token, this strategy carries no additional risk. However, compared to an active yield farming technique, the predicted return and risk may be lower.

My weekly earnings are divided into 10–20 percent and invested in reliable projects like BTC, LUNA, AVAX, and FTM stake the coins, increasing my bags.

Yield Farming

Farming entails lending crypto assets to DeFi Decentralized Finance in exchange for interest. Your money is placed in a liquidity pool and utilized to give liquidity to a DeFi protocol, which allows for trading, lending, and borrowing.

The platform makes fees by providing liquidity, which is distributed to investors based on their part of the liquidity pool. Liquidity mining is another name for yield farming.

As an example, consider Traderjoe.xyz:

In both UST and AVAX, you supply the same amount. AVAX is worth $500 and UST is worth $500. Your money is locked, and the liquidity pool pays you an annual percentage rate.

The majority of them will pay you in their own currency. For example, you'll get paid in both LUNA and JOE for that one.

The strategy here is to use what I currently own and don't intend to sell to generate liquidity and profit.

Conclusion

To get a weekly passive income, invest in nodes and Dao's.

Take a portion of my weekly earnings and put it into safer initiatives, while the remainder goes into other passive income opportunities.

These safer ventures can be used to stake or provide cash via farming.

Rinse and repeat as needed.

Thank you for taking the time to read this!

Let's be buddies on Twitter if you want to follow my daily adventures.

Disclaimer: I am not a financial advisor; I am simply a person with a laptop who wants to share his thoughts and experiences. This is only for amusement purposes. Before investing, always conduct your own research.