Long-time readers would know how I am a huge fan of passive income and always try to create new streams because one is just not enough.
Fixed deposits are old school. Even though interest rates have plunged from the economic downturn following the global lockdown, the interest that comes in is still useful, as we are not required to do anything more. However, do take note that passive income doesn't happen just like that. All the hard work has already been put in, and capital is saved up before the rewards can be reaped.
All this while, I have been exploring different ways to generate passive income. I am also a fan of Proof of Stake tokens such as ADA, but this requires some form of management as we are required to claim our reward every 5-day epoch. Even then, I still find it a little of a hassle, as I prefer auto compounding.
Platforms like Celsius and Nexo are great to park some crypto and receive a passive interest that compounds on a regular basis. Obviously, always DYOR and remember: not your keys, not your crypto. Never park 100% of your holdings with a 3rd party. This is why even though ADA requires some management, it is still a good choice because your crypto remains in your own wallet.
This week, I was introduced to two new ways to generate passive income. I had the opportunity to try them out when I won prizes in their contests, which allowed me to test how things go, before pumping in my own capital to grow the passive income.
Goblins.cash
I am not going to share what is their tokenomics, how they function, where they generate the interest to pay out to holders, yadda, yadda. But I can share that by staking $GOB, we will be paid an interest every 8 hours, compounded. However, the yield drops little by little over time, so even if the capital grows larger with compounded interest, the interest per period stays about the same, even dropping ever so slightly.
Just to put this on record, I began staking my prize of 0.5 $GOB on the morning of 30th March, 2022. By the time I publish this article, I would have staked for 2.5 days. Of course, it helps that the price of $GOB is a very attractive $133 or thereabouts at this time of writing.
Should the price of $GOB fall, the interest will not be as attractive in fiat terms. $GOB was launched at $60 and rose to more than $600 before falling gradually to $90. It's been steady at $132 - $133 for a while now. It goes without saying that the better its price, the more attractive the interest received is, in Dollar terms.
FlexUSD
Known as the world's first interest-bearing stablecoin, holders just need to have FlexUSD in their CoinFLEX account, without having to do anything more. This is the first of its kind in the world of cryptocurrency. It is fully backed and redeemable with USDC and pays interest every 8 hours.
I received $100 on 1st April 2022, the prize won in a contest, and it is already bearing interest, at one cent every 8 hours. Of course, this is a low reward but if the capital is larger and when compounded, $10000 capital can earn us $1200 a year for doing nothing.
Again, whether it's Goblins or FlexUSD or any other platform, always DYOR and never place all your eggs in one basket. Whenever the feature is available, utilize 2-factor authentication for an added layer of security.
If you are aware of any other similar services, but that allow us to still hold our crypto in our own wallets, besides reflection tokens, do let me know. I'd love to explore further and expand my passive income streams.
*Lead photo by Olya Kobruseva
