How I multiply my crypto! 

Decentralized Finance (Defi)

• An umbrella term for financial services on public blockchains, primarily Ethereum.

• With Defi, you can do most of the things that banks support - earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more - but it’s faster and doesn’t require paperwork or a third party.

• As with crypto generally, Defi is global, peer-to-peer (meaning directly between two people, not routed through a centralized system), pseudonymous, and open to all.

• An important part of these projects are the automatisms that allow transactions to be carried out without external intervention (smart contracts).

Smart Contracts

• Rules and penalties of an agreement, in the same way of a traditional contract.

• The key difference consists in the presence in the software of the “if/then” functions, which make the payment automatic when a certain condition is met.

Centralization  VS Decentralization:

How to identify if something is Defi (o CeFi)?

• KYC?

• ETH wallet?

• Private keys/seed phrase?

How does Defi multiply my crypto?

• Staking

• Liquidity pool

• Yield farming

• Lending/Borrowing

*you become an LP!

Becoming an “LP” (Liquidity Provider)

• Yield Farming & Staking: the process of obtaining a return on the capital offered as liquidity (you are rewarded for holding your crypto for the long term! #HODL)

• Liquidity Pool: a Smart Contract which contains funds and is programmed to reward LPs

Steps to do this:

1. Provide liquidity

2. You become an LP

3. Every time there is a transaction (or something else programmed), you get rewarded with NEW crypto! (APY/APR, sometimes governance token)

Keys to be prepared

• Wallet/exchange (to buy initial crypto)

• ETH wallet (e.g. MetaMask)

• Exodus - is a hard wallet