PASSIVE Income W/ Decentralized Finance – Using #DeFi To Bolster Your Gains! 🎉



one of the most exciting developments within the blockchain space is the coming of the decentralized financial system or the defy space in this new system will be able to see censorship resistant financial services while we retain full control of our wealth and personal data these financial tools will be open in permissionless an internet connection will be the only prerequisite to accessing them rather than geography or circumstance so defy is great but how do we get into it today where can we find opportunities that exist and how can we partake in them let's spend this video discussing defy and some of the different ways we can earn passive income using it which will put us in a very good position as the market matures welcome to Ready Set crypto this is your brain on blockchain so financial services are the crux of any economy they enable individuals to exchange value sewer wealth and take on credit debit cards credit cards and digital banking applications allow us to spend money on goods and services bank accounts allow us to save money and earn interest on those savings and loans give individuals and businesses access to capital so the economy can grow at a faster rate so there's no surprise that the financial services industry makes up a great deal of the world's economy and the US alone the gross output of the financial and insurance market makes up about 7.5 percent of the u.s. GDP but despite playing such an integral role the financial services industry is rife with problems many of the problems that plagued the financial services industry stem from the fact that the financial services are controlled and supplied by central party the primary pitfalls of centralized financial services include unequal access censorship counterparty risk and a lack of transparency one of the things that's motivated me being a part of the crypto industry is that according to the World Bank two billion people worldwide do not have access to a bank account or any financial institution in regions like Africa the Middle East and parts of Asia it often doesn't make sense for banks to service the population because of low income levels lacked a financial literacy at a small overall market this leaves people with a slew of disadvantages and it's been referred to as the geographic lottery the result has been widespread stagnation and economic development and societal progression as citizens of these countries are unable to store wealth send money and build a financial history centralized financial entities are also prone to censorship payment service providers are a great example as they have the ability to exclude individuals from sending and receiving money you might remember a time in which WikiLeaks was blocked by Visa MasterCard and PayPal in their ability to receive donations which in turn ironically promoted the use and proliferation of Bitcoin in 2011 something that Satoshi Nakamoto definitely was not being about but also acknowledged the necessity of it I think the advancements of the blockchain industry over the past decade have really set the stage for what's to come in terms of decentralized finance or defy from the offset it was clear that software would eat some aspects of the financial industry finance today operates through a handful of powerful intermediaries who can extract rent for providing services that can just as easily be delegated to code historically the largest obstacle to digitizing most financial processes is creating trust in digital environments there is a big question of how we can know that a digital transaction is valid without a central party verifying key elements of the exchange so this is where we introduce a new digital currency not one that you can trade but rather one that forms the basis of this new system Trust by digitizing trust we enable users to store and transfer wealth as well as take out loans without the need of an intermediary to sum it up blockchain based financial services are superior to their centralized counterparts across five primary features the first is that it's permissionless anyone is able to access the centralized financial networks through an internet connection no individual is denied service based on who they are where they are born or how much money they have for example the second piece is that it's censorship resistant there's no central party able to reverse the order of transactions and deem a validated transaction invalid at some later point in time furthermore a central party can't turn off the service anyone with access can use a decentralized network because they are the decentralized Network the third point is that it's trustless users don't have to trust a central party to ensure that transactions are valid the fourth is as transparent public block chains are completely transparent and auditable all aspects of a financial exchange are made available the last piece is that it's programmable developers can create an intertwined financial services at a very low cost plug-and-play architecture helps compound the power of these services so now that we've kind of covered at a high level what dphi is and what it represents and what it's trying to do let's briefly look at a list of different financial primitives currently being built out each one of these aims to be a 10 times improvement across access censorship resistance cost-effectiveness and transparency while this list is not exhaustive it should give you an idea as to how fast the space is evolving and provide a glimpse into what a more open financial world will look like so the first is scalable payments and the reason I have to mention this is that Bitcoin and aetherium in their current state are relatively inefficient at being both fast and cheap payment networks now we're still in the early days for the quest to solve scalable on chain payments there's a number of potential solutions but the community has largely shifted focused the layer 2 as the best way to scale blockchains the primary benefit of layer 2 solutions is that they move a great deal of network activity off chain and only rely on the main chain for trust enforcement and arbitration if successful layer 2 solutions will drastically decrease on chain transaction bloat while allowing the network to retain a high level of decentralisation the two most promising solutions the Lightning Network for Bitcoin and state channels for aetherium are currently garnering a lot of developer attention now each of these definitely deserves its own video but I wanted to make sure I made mention of scalable payments as a part of defy and as a potential passive income opportunity you could for example set up a Lightning Network node and receive a small amount of passive income from that now moving along another aspect of defy that is worth mentioning is stable coins of course the question that comes about is how do you make passive income from a asset that is designed to be stable and valuation the way I answer a question like that is not to look at stable coins themselves but to instead look at what a well matured provably solvent stable coin can do for the entire ecosystem if we can trust that a stable coin is pegged to the u.s. dollar for example and then it's going to retain that value 99% of the time that enables you to have many of the more complex mechanisms we're going to talk about in a little bit I think the only thing I want to mention here is that stable coins have come a long way in the past year and as of the time of making this video tether represents about 75% of the stable coin market whereas a year ago it represented a hundred percent a my anti tether exactly but I think it's significant to show that the stable coin market has started to diversify and with diversification and competition we get innovation so it's incredibly important to see that and it's incredibly important to see coins like maker dows die leading the charge of innovation so now that we've set the stage with defy and covered some of the more important aspects of it we can see that there's several options already available for generating passive income using defy the first is financial services so Celsius Network and block fire are a new kind of financial service they offer loans backed by crypto as collateral what's really interesting is that they pay you interest for your crypto so if you want to earn interest you send them your coins Celsius pays interest after one week blocked by after one month and both in the deposited currency they are an interest by lending out your crypto to margin in short traders and pass a part of the interest they earn back to you if you lend them stable coins they will lend those coins out to other users who take a loan we also have defy lending services players like compound and Dharma have come to the market and offer a decentralized way for lending your crypto and earning interest these services offer a borrowing and lending market based on smart contracts running off aetherium the interest rate which is paid is determined by a bid and ask if you want to earn interest you send your crypto to their smart contract via their app interface and become a lender that way on the other side there are borrowers which add collateral to the contract and that are allowed to borrow your crypto usually they do this for margin or shirt trading in the case of compound interest is paid after each aetherium block and interest is paid in the same currency that you lent we also have lending bot services this is where you might see something like crypto lend or coin lend which offer automated lending to margin and short traders on exchanges like bit FedEx and Cloney acts you don't need to have technical knowledge about how to use the BOTS or know anything about lending to traders you just send your crypto to the exchanges and the bot does the rest you will need to create specific API keys on the exchanges which the bot uses for the lending those keys are limited to lending only and don't grant the right to exchange or thrall so it seems to be a safe solution next I want to look at interest exchange programs some exchanges offer interest programs to attract new users usually they pay pretty one example is bit true which currently offers interest programs for XRP and some stable coins if you want to earn interest you send your coins to their exchange and add them manually to the interest program interest is paid daily in the same currency like the deposited coins MIT shrew earns the paid interest by lending the coins tube margin short traders on their exchange so those are the main ways I would look at passive income in the context of decentralized finance you're gonna have other passive income or slightly active income streams as you look around more in to defy for example there's crypto reward programs one such example is brave which is a privacy focused browser which removes all the ads and tracking scripts but what's more interesting is that soon you'll be able to earn crypto by watching ads the ads will be displayed in the browser tab based on your browsing activity the ads feature is currently in beta and will be released later this year another great example is lolly lolly rewards you with Bitcoin if he purchased goods from their partner retailers so these are just some of the ways that I've been looking at making passive income with decentralized finance the great thing is that decentralized financed or defy is definitely up-and-coming not to mention I think D Phi is going to play a very important role for how crypto evolves in the future and read ISA crypto we focus on what we feel are the three pillars of the digital economy of the future crypto security tokens and defy the combination of all three is going to pave the way for the new digital economy that we feel is going to be more representative and more democratized for the average person to capitalize them what I feel is the macro trend in 2019 I'm offering my new defy class starting today which will cover more opportunities about how to get involved with TFI as well as many more opportunities to find profit in defy furthermore the class comes bundled with my extremely popular security token class so if you're interested head over to ready site crypto comm slash defy to join the class for join our exclusive omnia membership and get access to all of our classes our newsletter our portfolio and a private escort for a price that's cheaper than the class so I hope you join us and together we'll find some awesome opportunities going forward but I want to hear what you think what do you think about defy what do you think about the different ways to make passive income with decentralized finance and the different ways that the crypto industry is evolving let me know your thoughts in the comments below and thanks so much for watching I really appreciate it I'll see you guys the next one Cheers

27 thoughts on “PASSIVE Income W/ Decentralized Finance – Using #DeFi To Bolster Your Gains! 🎉”

  1. Your videos are always informative, keep up the good work. Meanwhile The trading market is constantly evolving with new features, many trading opportunities and financial swings with sudden surprises around every corner.The best thing is to stay in shape and more important, don’t let anything catch you on the wrong foot and never get too emotional. .Dani Thompson strategy allows for exit of trade prior to expiration, to take profits or avoid taking the maximum loss. I started with $2000 and I made back returns of $13,500 within 14days of intense trading. He guarantees profits payout, you can reach him on ( [email protected] com ) and start earning from btc with his assistance.

  2. I love the whole idea of DeFi. I moved all my holding from stocks to Crypto 2 days ago! Bybye to the old financial system!

  3. It's not news anymore that Forex trade, Iq/binary option is frustrating and heartbroken when you loss your hard earn money to your broker and it can lead one to bankruptcy if not managed with a sincere Broker/Account manager. Mr Frank has all it takes to win in terms of strategy and his method of trading gives every trader a great smile and a maximum winning, coming in contact with you Frank is a blessing to me and my family, i am a winner all round.

  4. Good one Mav. DeFi is the buzzword, second only to STO's now. There's another youtuber (Blockchained Future) with avid interest in DeFi. He has produced in depth videos on DeFi. I would recommend you to bring him on to your channel for a combined discussion, along with CryptoGurus.
    btw, Kyber network and Uniswap, Xdai are other decentralized lending/staking/pooling platforms.
    Another issue: Would you consider other passive crypto income (dPOS for example) as DeFi?

  5. Celsius from 3 % to %7,1 a year depending on coin deposited . Majority projects give small %, the question – is it worth it ?
    bit.ly/2CGB8rb
    bit.ly/2YhFSwI

  6. Long time sub here. I would like to encourage you to go back to old way you used to say this is your brain on blockchain. The current way sounds way over done and cheesy. Love the content here!

  7. Do you know about Nash (previously NEX) DeFi, could you give us your thoughts about it ? Thanks for what you're doing !

  8. Bro you did not mention any risk or down side to the lending platforms. Your crypto on their exchange and they go belly up your toast.

  9. Novachain pays more than 1% daily if you use their automated trading T-REX bot, directly on your Binance account. Funds are also on your account whole time., they only have API key without the possibility to withdraw.

  10. Recently there was flashing news that Telegram before GRAM coin floatation carries out its final ICO round on gramwiki.info/price

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