Here is a solution to lend cryptographic money, receive interest and get a small passive income.
I tried Fulcrum. That’s how it went.
Although Fulcrum is more Trader-oriented, it is an intuitive platform that is easy to practice even for a beginner.
During my research I had a good help in using defiscore, a site where it is possible to find an estimate of the loan risk, related to the use of the main LENDING platforms, using cryptos like DAI, SAI, ETH, USDC, ZRX,WBTC and more.
At the moment it would seem convenient, as the best option, to commit DAI rather than SAI, with APR% that can be easily verified on the site.
Once acquired manual skills, this page becomes very useful, because it allows you to swap the loan to other platforms that release more advantageous interest than the annual percentage rate (APR).
I TRIED FULCRUM
With Fulcrum you can commit money by taking advantage of the installation of a Web3 wallet that interacts with the bZx smart contract, the experience is immediate if you use Metamask, although there are also other Wallets that work very well here.
Ti serve Metamask ? vai al link !
Navigando sul link https://app.fulcrum.trade/#/lend, fai clic su LEND, seleziona la tua risorsa da prestare, invia la quantità e approva la transazione.
Impegnato il valore hai la possibilità di osservare, attraverso un contatore mobile i tuoi progressi e sapere min. X min., in perfetto real time, quanto denaro hai guadagnato.
HOW IT WORKS
Choose the crypto to pawn, usually the one with the most interesting APR% and click on LEND.
Fulcrum invest crypto money and earn interest
The APR% or annual percentage rate, is the return that users would get if they lend their funds for a year, this value is never guaranteed, because it is variable at each block and influenced by fluctuations in the money market.
In the example, observing the Fulcrum HomePage, it is certainly interesting to lend DAI with 1.10% interest, or ETH with APR% of 1.75%, other cryptos have negligible APR%, some zero and therefore we do not take them into consideration.
Choose the crypto you want to pawn, then click on LEND, the value content of the crypto in your wallet appears, choose the amount and then LEND.
In the example that you see my wallet contains only 1 dollar in DAI that I decide to pawn everything 🙂
HOW IT WORKS
Fulcrum, as well as other lending platforms (Compound/// Idle// Aave // Uniswap etc.) is to all intents and purposes the fastest and most immediate way to create a profit, simply by lending crypto money you are not using.
There are no accounts to open and no commissions to pay.
Fulcrum is based on the bZx protocol (if you want to understand a bit how it works, I suggest you read here) and works by exploiting the integration of Wallet Web3, such as metamask, Formatic, portis, Bitski, SQUARELINK.
Fulcrum can be used with extreme simplicity, both for LEND and TRADING, even with leverage if you are interested. In both cases, it’s a simple and immediate experience, which doesn’t require any particular skill, except the fact of having crypto to lend and some experience.
However, the best user experience and the best gain, you have the LEND with DAI, rather than SAI, so it is important to know how to get at least one of these cryptocurrencies, which are stable and worse at the dollar value, essential to keep in your portfolio in times of strong market instability.
You can decide to get DAI by exchanging it with one of your ERC20 tokens present in your Metamask wallet, taking advantage of the speed of use and immediacy of DEX aggregators, i.e. platforms capable of aggregating exchanges, able to always provide the best rate.
Personally I have tried (but only for small amounts) the paraswap.io aggregator, although I still consider KyberSwap (DEX) the best solution to make the swap, from one ERC-20 token to another directly with Metamask.
The technical, external and economic risks of failure exist in cryptography in general and therefore also in DAI. Although DAI is completely transparent and onchain, we know exactly what supports it: a cryptographic algorithm and the ethereum network.
While for the dollar or any other fiat currency, to tell the truth, we still do not know 🙁 .
This way DAI has a lower risk, but still a risk and overall you should understand that DAI involves a higher risk than other stable currencies, such as USDC/USDT (etc) for example and/or Fiat currencies.
The Ethereum network, encryption, smart contracts or similar disasters could fail. In all these cases you could lose all your money in DAI.
So take it easy and be aware.
However, if your goal persists and continues to be to acquire skills and try to get the best passive interest from your money in your wallet, we have written a free guide for you, which may be useful to you.
You can find it HERE and it is attached to the article on our Chat !
… For now only in English.
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Independent researcher and consultant, crypto activist.