DeFi staking is a very unique way of generating passive income, since investors commit their funds and smart contracts go to work, ensuring every condition is met, and profits are received.
DeFi staking is a safer and less risky way of generating passive revenue compared to traditional means. Having to worry less about common issues such as corruption, lack of transparency, and hidden fees will put users at ease.
With DeFi staking, investors can tap into higher interest rates compared to savings accounts and traditional products. With fewer intermediaries, the profit potential increases exponentially. More importantly, investors will always retain complete control over their funds, empowering participants in DeFi staking.
Compared to keeping money in a savings account, choosing DeFi staking is almost a no-brainer. It has better rewards and support for assets that cannot fluctuate in value, like stablecoins.
Stablecoins seek to maintain a constant value of a token relative to some asset, most commonly the U.S. dollar or other major fiat currency. Non-custodial stablecoins function as DeFi services themselves. Custodial stablecoins are centralized but may be incorporated into DeFi services.
Credit involves the creation of time-limited interest-bearing instruments, which must be repaid at maturity, and the matching of lenders and borrowers to issue those instruments.
Derivatives are synthetic financial instruments whose value is based on a function of an underlying asset or group of assets. Common examples are futures and options, which reference the value of an asset at some time in the future.
Insurance provides protection against risks by trading the payment of a guaranteed small premium for the possibility of collecting a large payout in the event of a covered scenario.