How to earn passive income in DeFi with Okto? A step-by-step guide to using Earn on Okto
Do you want to earn passive DeFi income with Okto? Continue reading this step-by-step guide to earn passive income in DeFi through staking, liquidity pools, etc. with Okto Earn.
What is Octo Earn?
Okto’s Earn is a type of financial product offering that allows users to earn passive income from their crypto holdings.
In traditional finance, banks pay interest on deposits, but with DeFi, users can earn interest by depositing their crypto into an asset pool (liquidity pool). These activities are made possible by smart contracts, which automate the investment process, pay interest and thus make the use of intermediaries such as banks superfluous.
DeFi Earn allows users to earn interest on a variety of cryptocurrencies, including Bitcoin, Ethereum, and stablecoins like USDT and USDC. Overall, DeFi Earn offers a decentralized, transparent, and often lucrative way to earn passive income from crypto holdings while helping to grow the DeFi ecosystem.
With Okto Earn you can do both Put your single token and earn interest (also known as APY) or invest in Liquidity Pools.
What is staking?
Staking will lock your cryptocurrencies for a period of time. In return, you earn interest by wagering your tokens. For example, if you have ETH in your wallet, instead of letting your holdings sit around unused, you can stake them on Okto, generating additional income in the form of APY or an annual percentage return.
What are liquidity pools?
A pool of crypto assets that holds funds and provides liquidity to a DeFi platform, allowing people to trade easily without intermediaries. This pool is created when Liquidity Providers (LPs) add the equivalent of two tokens to the pool. It is mandatory to add the same value of 2 tokens to a liquidity pool. In return, you earn interest for providing your tokens in a pool.
What is Annual Percentage Return (APY)?
The return you get from your crypto investment. With APY, you receive interest on both your principal and the interest, providing a compounded return.
What are receive tokens?
They are like confirmation tokens that you receive in return for depositing or wagering your token as part of the Earn feature. For example, you would receive 1.3 MATICX for every MATIC used. Additionally, if there are liquidity pools for those receipt tokens, you can invest in those pools and earn additional interest for doing so.
How do you invest in a liquidity pool?
- Log into Okto and click the Earn tab at the bottom of the screen.
- Browse the listed assets and select a token of your choice.
- Suppose you have selected ETH. A list of all available trading pairs from Ethereum pools will then be displayed.
- Click on the trading pair (e.g. ETH-BNB), explore the details of the pool, e.g. B. Yield (APY) and click Invest Now.
- Enter the amount of each token. Please note that it is mandatory to add the same value to each token.
- Click “Continue to deposit” if you do not have enough funds for each token in your wallet.
- You can either buy with fiat (via bank transfer) or deposit it from an external wallet or your CoinDCX wallet.
- Once you deposit tokens, review and confirm your order. In return, you will receive LP tokens as proof of investment.
Hooray! Now your cryptocurrency will generate passive returns for you!
How do I stake my token?
- Go to Earn and select a token (e.g. MATIC).
- Click on the token and check the details like APY, minimum amount, lock-up period, etc.
- Click Invest Now and enter the MATIC amount you wish to invest. If your balance is insufficient, you need to buy or deposit MATIC.
- After adding MATIC, review and confirm your order.
- In return, you will receive a “Receipt Token”, MATIC is MATICX. The receipt token is a confirmation token or proof of your investment.
Here is a step-by-step video guide to investing with EARN on Okto.
How can I exit the stake and claim my funds and rewards?
- In the “Portfolio” tab, go to “Your Investment”.
- Select the token and click “Exit” (e.g. MATICX).
- If the token is tradable (which means you can sell your receipt token), you can either:
- Request exit or
- Sell MATICX
- If you “Request Exit”, enter the amount, review the details, and confirm your order.
- If you select “Sell MATICX” you can select the token you would like to receive in return and confirm your order.
- If the token is not tradable, simply place an exit order, review the details and confirm your order.
Please note: If the withdrawal deadline exists, you can only claim your rewards after the withdrawal deadline, otherwise you will receive your rewards immediately after the exit request.
How much return can you get?
You can earn passive returns from 0.5% to 50% or even more*.
Top USDT Liquidity Pools
What are the risks involved?
Earn offers a range of passive earning opportunities with varying returns ranging from 0.5% to over 50% per year. However, it is important to note that higher returns usually come with higher risk factors, which may result in a depreciation of the amount invested.
The main risks associated with higher returns include:
- Fall in price of the underlying asset
- Ephemeral Loss
- liquidation
- Fraudulent logs or pirated software
- Unstable chain/network
Before investing in high-yield earn pools, it’s important to research and understand each of these risk factors in order to make an informed decision. By understanding the potential risks, you can invest in earn pools with higher returns that match your risk tolerance and investment goals.
Let us help you start your journey by sharing a short video:
frequently asked Questions
How do I choose Earn?
Click on the ‘Earn’ tab and choose to deposit your preferred crypto asset from the listed crypto assets under the ‘Earn’ feature. Next, select the blocking period, review the details and confirm.
How many tokens are available under Earn?
Over 1000 tokens are available under Earn. We will continue to add more tokens.
When can I withdraw my assets?
Depending on the blocking period, assets can be withdrawn.
What is a lockout period?
The minimum period of time you must lock your cryptocurrency for in order to earn interest. During this period you cannot do anything with your cryptocurrency.
What is a payout period?
After you have completed your Earn investment, it can sometimes take a few days for your return to be processed. You can then claim your rewards.
What are tradable and non-tradable tokens?
Tradable receipt tokens allow you to exchange your receipt tokens for another token, while non-tradable tokens do not allow you to exchange your tokens.
How do I monitor my investments?
Go to the “Portfolio” tab and then click on “Your Investment”. You can see all your investments.
What is temporary loss?
The loss incurred when the price of the asset you made available to the liquidity pool changes compared to the price when you initially deposited it. The larger the price change, the larger the temporary loss you suffer.
Are there any tax implications for Liquidity Pool rewards?
- Taxation depends on your region and jurisdiction.
- Please file the tax return yourself in accordance with the laws.
What are the fees for adding/removing liquidity to/from liquidity pools?
You will be charged a gas fee for adding/removing liquidity to/from liquidity pools.
*With high returns comes high risk. Users should do their own research before investing in crypto.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.