By Bolide | Bolide Finance Blog | 29 Jun 2022

Decentralized finance (DeFi) has been one of the key sectors of growth in activity and general interest in the crypto ecosystem over the past few years. While investors have made fortunes through investments like Bitcoin over the years, DeFi has added another potential element for profit by enabling users to earn a yield on their crypto holdings.

Bitcoin was able to decentralize the areas of monetary policy and payments. Now the smart contracts deployed on blockchains like Ethereum, Binance Smart Chain, and Solana aim to decentralize the rest of the financial stack. Companies are lowering costs and increasing yields by cutting out intermediaries.

And with the rise of stablecoins, more mainstream users can now get involved in crypto investing, without the volatility associated with traditional cryptocurrencies.

Types of Yield in DeFi

When it comes to earning yield in DeFi, there are various options available. Nearly every function of the traditional financial system has already been replicated in the land of DeFi, meaning earning passive income is similar to how you make a return on investment via the legacy banking system. That said, there are three main ways in which crypto users are earning yields in DeFi:

Staking is one of the most popular ways to earn yields in crypto, and it’s mainly used as a governance system for various crypto protocols. Whether at the base blockchain layer or as part of a decentralized application, proof-of-stake is an alternative to the proof-of-work system used in Bitcoin. Stakers put up tokens for the right to participate in a crypto protocol’s governance. They are rewarded for locking up their liquidity to earn rewards similar to dividends in stocks and shares. In most cases, the yield generated from staking comes from the fees associated with using the platform.

Lending is another popular method of earning yield on crypto holdings, but this tactic is more straightforward. Those who lend their crypto tokens to others can then charge interest on the loans.

Becoming a liquidity provider for a decentralized exchange is a third popular way of earning yield in crypto. The liquidity provided to exchanges is used to execute trades on behalf of users, and the liquidity providers earn the fees associated with the trades. Don’t overlook the fact there is a bit of added risk with this method of yield generation in the form of impermanent risk.

Automate the Process with Yield Aggregators

With all of these different opportunities for earning yield in DeFi, it would be nearly impossible to keep track of the best possible place to put your crypto at any time. For this reason, it makes sense to outsource this work to a yield aggregator.

With the right yield aggregator, you won’t have to worry about missing out on potential high-yield crypto investments, and you’ll be looking at the purest form of generating passive income in crypto. You only have to worry about making a deposit or a withdrawal, and the yield aggregator will take care of all the yield generation at a prespecified rate of return.

Of course, it’s essential to understand the types of yield generation opportunities a yield aggregator uses before investing. Different aggregators are available with varying levels of risk, so it makes sense to take the time to find the right fit for your needs.

Low Risk, High Yield Solutions

Low-risk investing with high yields – is it possible? 


That’s where companies like step in. 

 Over the last couple of years, many investors have turned to crypto and are investing stablecoins in High Yield Farming Aggregators. And that’s where the smart money is heading. 

 DeFi high yield farming aggregators offer a one-stop automated investment strategy. Simply deposit your stablecoins into an index tracking portfolio that rebalances your assets across the DeFi spectrum, hunting down the best investment opportunities and giving you market-leading yields with instant access to your assets. And you can choose your level of risk while enjoying APYs of up to 30%. 

Here’s a quick summary of the benefits.

  • Low risk, market-leading yields of up to 15% APY
  • Earn an extra 20% staking your BLID tokens and enjoy 11% APY on farming 
  • Hands-off, passive automated investments using your stablecoins 
  • Access your funds and profits instantly

Awesome yields that really take some beating. 

Earn interest at the speed of light with Bolide’s high-yield aggregator!

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Bolide Finance Blog
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