Amid the coronavirus crisis in 2020 and its consequences that continue its influence in 2021, many people consider additional sources of income. Among other things, the special attention was drawn […]
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Most people purchase non-fungible tokens (NFTs) with the intention of hopefully selling them at a much higher price in the future. And some NFT holders don’t want to sell their prized possessions, but that doesn’t mean they can’t benefit from them at all.
It’s a well-known fact that investing in any market has a certain level of risk. Moreover, price appreciation of any asset isn’t guaranteed and there can be a significant opportunity cost associated with holding idle assets on a long-term basis. This is also true with NFTs because their fair value is largely undetermined due to their highly speculative nature.
NFTs are arguably the most abstract types of assets that have ever been created and traded. Recently, a “COVID Alien” NFT sold for over $10 million and it’s quite possible that other buyers may not want to pay anywhere near that amount for such an item. Many people find NFTs to be quite ridiculous so it can be challenging (if not impossible) to assign them an objective monetary value.
However, there are certain strategies investors can employ to begin earning steady returns from their NFT or DeFi assets.
Leverage your NFTs to participate in yield farming
Most experienced investors would know that the art and collectible markets are considerably more “liquidity-starved” compared to the traditional equity, gold markets, and other asset classes. And this liquidity crisis is even more common in the NFT space, which is in its infancy.
It can take a very long time to match serious buyers and honest sellers or lenders and borrowers. Without the right amount of liquidity, NFT holders might not be able to find the best deal and could end up selling their collectibles for extremely low prices if they need money right away for some reason.
Drops Crypto is a platform that allows NFT owners to generate capital by providing their NFTs as collateral. The platform aims to offer users with attractive options that allow them to effectively leverage their assets for loans and participate in yield farming opportunities.
It will allow users to create NFT vaults where funds borrowed against NFT and DeFi assets are sent straight to a yield farming strategy, enabling yield farming using NFTs.
You can also lower the opportunity cost of holding governance or liquidity tokens by putting them up as collateral to earn considerable yield. Additionally, you may utilize the NFTs as collateral to get trustless loans. Lending through Drops is powered by permissionless NFT lending pools. Users may also generate returns with their “idle” assets by providing stablecoins, governance tokens to fungible or NFT lending pools and earn competitive APYs.
Ever thought of renting out your NFTs?
Renting out your non-fungible tokens for a fee is a nascent but promising trend. Users want to borrow NFTs for a fraction of the cost of purchasing them outright. Maybe they want to flaunt it or maybe they want to know what it feels like to have a prized possession, even if it’s for a short while.
As an owner, you can earn some passive income by renting out your idle NFTs. Yiedl Finance allows its users to rent out their NFTs to generate rental income. The NFT owners can determine the rental price, the NFT price (which is subjective), and the maximum rental period. Someone who wants to borrow your NFT will have to put the NFT price down as collateral along with the rental fee for the desired lease duration.
The NFT owners have no reason to worry about theft or fraud because the borrower has put the value of NFT as collateral. When the borrower returns it on time, the collateral is released to them.
Earning with both hands
This method is more suitable for sophisticated investors with a good understanding of the crypto market, investor behavior, and NFTs. Here’s how it works: Put your NFT down as a collateral to borrow cryptocurrencies that your research tells has a massive upside potential. Then stake the cryptocurrency to earn some passive income (why keep it idle?) while waiting for its price to shoot up.
You’ll be generating staking rewards on one hand while benefiting from the potential price appreciation on the other hand. For the uninitiated, staking involves putting your cryptocurrencies to validate transactions and participate in other network activities.
Wrapping it up
The NFT ecosystem is still at a nascent stage. People would increasingly want to monetize the NFTs they bought for exorbitant amounts of money. But waiting for the prices to appreciate might be a futile exercise. Platforms like Drops Crypto, Yiedl Finance, and others are opening up new avenues to make money with NFTs and DeFi assets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
We are happy to announce that QNT has joined the family of the over 200+ cryptocurrencies available for exchange on Changelly! Starting today, users will be able to exchange it with other digital assets at floating rates on our platform.
In order to address the problem of blockchain interoperability, software reference architectures for blockchain interoperability should be set up. However, the majority of existing technologies trying to connect DLTs define a standard of interoperability within their platform, but not outside. The integration with legacy or other DLTs is challenging and difficult to implement.
Quant’s platform is standardised and protocol-agnostic, simplifying and connecting any system to any network to any DLT anywhere in the world, to share, see and exchange information and value across them, securely, simply and cost-effectively. Furthermore, with easy implementation, focused innovation, and reliable support, Quant’s solutions ensure everyone gets the very best out of any DLT they choose.
We are so excited to welcome Quant in our big crypto-family. We believe that their focus on enterprise solutions in reducing the gaps between different blockchains will be very valuable for our users.
Changelly team
About QNT
Quant is a technology provider, delivering enterprise-grade interoperability for the secure exchange of information and digital assets across any network, platform or protocol, at scale. Quant’s Overledger DLT Gateway is the world’s first enterprise DLT Gateway that complements and connects existing systems and DLTs, to drive innovative and efficient growth for companies, public entities, and regulatory bodies alike. Headquartered in London, UK, Quant is recognised as a Gartner Cool Vendor 2019, and is committed to unleashing the power of systems that are as connected as the world we live in.
Website: https://www.quant.network/
Twitter: https://twitter.com/quant_network
About Changelly
Changelly provides an ecosystem of products and services that enables customers to have a one-stop-shop experience when engaging with crypto.
Operating since 2015, Changelly acts as an intermediary between crypto exchanges and users, offering access to 200+ cryptocurrencies that can be effortlessly swapped within 10 minutes on desktop and on the go via Changelly mobile app.
In 2020, Changelly branched out to accommodate the needs of traders. PRO has been built as a platform focused on the customer’s needs, effectively enabling retail buying and selling digital tokens and coins. Piggy-backing on the great support system found within Changelly, Changelly PRO will provide the community with high limits, effective pricing, fast execution, and 24/7 live support.
Learn more about Changelly:
Changelly Website: changelly.com
Changelly PRO website: pro.changelly.com
Twitter: twitter.com/Changelly_team
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If Ethereum co-founder Vitalik Buterin gets his way, Dogecoin could be set for an overhaul that would see a major step forward in its evolution.
With DOGE struggling to recapture its previous form from earlier on in the year, this proposal could go some way to reigniting interest in the controversial meme token.
As a “Twitter experiment,” Buterin posted a tweet requesting people he follows ask him anything on both crypto, and non-crypto, related questions.
Doing a random twitter experiment just on this day. Only the 268 people I follow can reply to this tweet. Feel free to ask things and I'll talk about anything crypto or non-crypto related.
— vitalik.eth (@VitalikButerin) September 1, 2021
The CEO of Three Arrows Capital, Su Zhu, duly responded by quizzing Buterin on his Dogecoin/Ethereum integration ideas.
Similar to what Ethereum is trying to accomplish with ETH 2.0, Buterin suggested Dogecoin change its consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS). He added that, by using Ethereum code, developers wouldn’t need to start from scratch.
“Personally, I hope that doge can switch to PoS soon, perhaps using ethereum code.”
PoS vs. PoW is a hotly contested topic, as advocates for both sides maintain superiority.
Generally speaking, PoS offers more scalability and throughput. But a fully decentralized, high hash rate (strong miner supported) PoW network is said to be more secure.
However, the decisive factor in current times seems to boil down to environmental concerns, favoring PoS over PoW networks. Critics of PoW say the high electricity consumption and use of polluting power sources are unsustainable in the long term.
Dogecoin detractors often point out the protocol’s inflationary supply. Thus questioning how a token with infinite supply has value.
DOGE was initially launched with a 100 billion fixed token supply. But, on the basis of promoting its use as a tipping mechanism, while also discouraging hodling, developers removed this limit. Currently, $5 billion of DOGE are added to the supply each year.
On that, Buterin said he’s in favor of keeping the inflationary issuance. But rather than entering into the token supply, he suggests channeling the funds into a decentralized autonomous organization (DAO) that “funds global public goods.” This, Buterin said, is in keeping with Dogecoin’s “wholesome ethos.”
“I also hope they don’t cancel the 5b/year annual PoW issuance, instead they put it in some kind of DAO that funds global public goods. Would fit well with dogecoin’s non-greedy wholesome ethos.“
Earlier this year, as Dogecoin was spiking higher, its co-founder Billy Markus resurfaced by posting an open letter on Reddit explaining why he disappeared and what he wants for DOGE going forward.
In it, he said it’s his hope that Dogecoin can be a force for good. While not explicitly stated, Markus implied that this would go some way to countering the negative aspects often found in the crypto space.
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✅Why SafeHamsters and why now !? The market opens up new development paths and blockchain opportunities. Unfortunately, many projects turn out to be scams where good ideas and technologies are buried. […]
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XRP’s projected growth paints a steady, if unspectacular, picture. At an estimated $3.43 in 2026, $4.17 in 2030, $5.33 in 2035, and $6.80 ...
