@bilgecrypto
2. Farming on DEX platforms (Uniswap, SushiSwap, Curve)
Decentralized exchanges allow you to provide liquidity for trading pairs.
• How it works: You contribute ETH together with another cryptocurrency to the liquidity pool. For this you get part of the exchange fees and sometimes platform tokens (e.g. UNI, SUSHI).
• Risks: Impermanent losses due to changes in asset prices.
• Profitability: Can reach 20-50% per annum depending on the pool.
3. Landing on platforms (Aave, Compound)
If you have Ethereum, you can rent it to other users through DeFi protocols.
• How it works: You place ETH in the pool, and other participants borrow it on bail. You get interest.
• Pros: Less risk of losses, as all loans are secured.
• Profitability: Usually lower than in farming, about 2-5% per annum.
https://app.uniswap.org/