Following the introduction of governance tokens in the summer of 2020, this blossoming ecosystem became prominent; now, over $210 billion is locked in multiple DeFi protocols, according to on-chain analytical data provided by Defi Llama.
Unlike centralized ecosystems, DeFi platforms do not require an intermediary. To facilitate user engagement, this futuristic version of the financial markets uses non-custodial wallets like Metamask.
Most DeFi apps are based on a permissionless smart contract architecture, allowing anybody to engage with the featured items.
While DeFi has produced instant billionaires, not everyone has been so fortunate. Many cryptocurrency users who keep their cash in non-custodial wallets like metamask are only aware of spot trading options. Far less than what the intriguing world of DeFi has to offer.
So, what are some of the other profitable chances available to Metamask users? We’ll take a thorough dive in the next portion of this post.
One of the most profitable options in the DeFi sector is yield farming. This method entails lending or staking your cash in DeFi protocols to obtain network rewards.
In exchange, based on the highlighted reward formula, one is awarded a platform’s native tokens or stable currency.
DeFi pioneers are shifting to alternative Layer-1 chains (Solana, Avalanche & Fantom).
Crypto users may access several DApps developed on the aforementioned chains thanks to Metamask’s compatibility across many blockchain settings.
This means that one can avoid a single blockchain’s high costs or constraints to benefit from various ecosystems. Furthermore, the hosted yield farms can provide an APY of more than 100% in rare circumstances.
DeFi Management Techniques
DeFi, like conventional finance, has developed to include a diverse set of services and customized solutions. This emerging ecosystem allows both novice and experienced investors to actively manage their assets using automated DeFi protocols such as HyperDex.
Through the Binance Smart Chain (BSC) network, this DeFi management tool is compatible with the metamask wallet.
Currently, most DeFi users lack the expertise to invest in the correct possibilities or take on more risks than they can handle.
The HyperDex DeFi management system addresses this issue by offering cube financial instruments divided into four categories: fixed income, algo trading, race trading, and modular cube investments.
DeFi customers who want to automate their investing methods can select a cube based on their risk tolerance and appetite.
The HyperDex ecosystem is supported by a native token known as HPY. Platform users can use this token to lower transaction fees while performing on-chain actions.
Furthermore, the HPY token serves as an incentive prize for HyperDex ecosystem early adopters. The platform intends to expand its DeFi management tactics by introducing additional digital assets such as NFTs.
Play-to-Earn (P2E) Games
Another method Metamask users may diversify their crypto assets is through play-to-earn (p2e) games. These games have grown in popularity in the last year, as NFTs have become more widespread. In an ideal world, p2e games are built on the NFT architecture, allowing users to exchange unique in-game products on numerous NFT marketplaces.
The first yield farms were constructed on Ethereum, using Compound Finance and Aave protocols. However, the scene is shifting due to the Ethereum blockchain’s high transaction costs and inability to grow effectively.
Blockchain-based games currently account for more than half of active wallet users in the DeFi and NFT sectors.
These games are being played by technologically adept users and prospects from undeveloped nations like the Philippines.
When the bulk of its inhabitants rushed to the Axie Infinity game, the country grabbed news in the crypto industry.
While the returns from Axie Infinity have subsequently dropped, other future games, such as Splinterlands, provide a comparable, if not greater, chance.