Part 2/7:
The DeFi Landscape: Opportunities Worth Exploring
Among the myriad of services DeFi offers, three primary functions stand out: staking, lending, and providing liquidity.
Staking allows investors to lock their cryptocurrency assets in a protocol to earn annual interest, albeit usually modest—typically around 3-4%.
Lending and borrowing work by enabling users to put their assets up as collateral against stablecoins or other cryptocurrencies. This can be particularly useful for investors whose asset values have increased but who wish to maintain ownership while accessing capital.