Welcome back everyone. It has been said that variety is the spice of life, and DeFi platforms are no exception. There are a growing number of different decentralized financial lending platforms that each offer a slightly different set of benefits, user interfaces, and functionality. My goal is to cover each of the platforms so that you can make your own choice as to what platform is best for you. In today's video, I will show you how to earn interest on your cryptocurrency by lending Dai on Fulcrum.
Before discussing the steps to lend on Fulcrum, I want to give a very brief overview of Fulcrum. Fulcrum is a Decentralized Financial (DeFi) application that allows you to loan your crypto currency and earn interest. It is a great way to earn passive income on your crypto assets while still retaining ownership of the assets. Because Fulcrum is a DeFi platform, there is no KYC, no application process, and no wait times. You can lend and withdraw your funds whenever you want. Obviously, there are risks involved with any kind of lending. It is important to do your own research, but if think DeFi lending sounds like a good idea, let me show you how its done!
To lend on Fulcrum, you will have to navigate to https://fulcrum.trade/#/ and click on the "Lend" icon. Login with your MetaMask wallet and click connect when prompted by MetaMask.
Once you have logged in, you will be able to see the interest rates that you can earn for each of 8 different cryptos. Just a heads up, you may have to refresh the page once you log in with MetaMask to be able to see the interest rates. Select the crypto that you want to lend by clicking the "LEND" icon.
Once you have selected a specific crypto to lend, a dialogue box will pop up. You can enter the specific amount that you want to lend, or you can simply click the green "MAX" icon to lend the full amount in your wallet.
After you click "LEND" MetaMask will ask you to confirm the transaction. There will be a small ETH gas fee required to carry out the transaction. If you need the transaction to process more quickly, you can set higher gas, but if you are comfortable waiting, then you may want to select a lower gas price.
Before lending crypto, many DeFi sites, make you "unlock" the specific asset that you want to lend by sending a very small ETH transaction. I did like that Fulcrum did not make unlocking Dai a separate step. All I had to do was click confirm once in MetaMask and the transaction both "unlocked" Dai and deposited my funds.
You can view the transaction in Etherscan or by looking at the icon in the top left hand corner of Fulcrum. I used the lowest gas price possible and the transaction completed in about 15 minutes. When setting your gas price, I always recommend checking https://www.ethgasstation.info/ to get an idea of what gas price to set.
Once the transaction has completed, you will see the Dai deposited in your Fulcrum Dashboard. One nice feature of Fulcrum, and many DeFi sites in general is that you can view the interest earned in real time. There is no need to wait till the end of the month to receive a bank statement. When you are ready to withdraw your funds from Fulcrum, simply click the red "UNLEND" icon and approve the transaction in MetaMask.
After "Unlending" our Dai, we see that our Dai balance in Fulcrum is back to 0 and we have received our 1 Dai back in MetaMask.
In conclusion, Fulcrum is a great DeFi lending platform with an easy to use interface and good interest rates. It is always important to do your own research to determine what is the best investment for you, or if you should invest at all. That being said, Fulcrum does compare favorably to other DeFi platforms in many ways, and I look forward to using it more in the future.