Lecture 2.0.0. How to Benefit from DeFi
There are various ways you can benefit from DeFi. The two most common ways are:
(1). Setting Up a Decentralised Business
You can set up DApps for your business just as Charis did (story told in Course 3). That will require assembling some IT experts to automate and connect your business to the blockchain.
(2). Tokenisation
The five components of the Decentralised Market System mentioned in Course 3 are Smartchain, Oracles, Protocols, DApps, and User Interfaces. These five form the Blockchain Ecosystem.
Each of these five components of the Blockchain Ecosystem can issue their own crypto, referred to as a native crypto. For example, in the Ethereum Ecosystem, the following native cryptos have been issued:
• Ether – a native crypto for Ethereum smartchain
• LINK – a native crypto for Chainlink oracle
• COMP – a native crypto for Compound protocol
• AXS – a native token for Axie Infinity DApp
• UNI – a native crypto for Uniswap user interface
Presently, the four popular ways you can make profits from these native cryptos are:
(a). Hodling
(b). Lending and Borrowing
(c). Yield farming
(d). Trading
Indeed, knowing the various five components of the Blockchain ecosystem, you will not be confused on which cryptos in the Crypto Market will be viable for your investment portfolio. Buying the native cryptos of each of these components of a smartchain ecosystem is always rewarding.
For instance, AXS of Axie Infinity was launched in March 2018 and up till November 2020, its price was low – 0.1234 dollar. Native tokens often make good investments because of their good use cases.
Therefore, it’s not surprising that the same AXS was trading at about 130 dollars as at the writing of this article (October 2021), generating a profit of about 105200%. Wow!! That is astronomical! It shows the power of investing in a good native crypto!
Piece of Good Advice!
In other words, always try to find out the five components of a Blockchain ecosystem and what native cryptos are issued by each component. If you can buy these cryptos at the early stage when they are launched and hodl them for a long time, you will be surprised at how much good financial fortunes you will make!