Yes, you can earn yield on Ethereum. Here’s how:
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is unique in that it allows developers to create their own decentralized applications (dApps). These dApps can be anything from a simple game or social media platform to a more complex financial application or decentralized marketplace.
What makes Ethereum even more special is that it has its own built-in currency, called Ether (ETH). ETH is used to pay for transaction fees and gas costs incurred when running dApps on the Ethereum network.
So, how can you earn yield on Ethereum?
There are a few different ways. One way is to simply hold ETH in your own personal wallet.
Over time, as the price of ETH goes up, your holdings will increase in value. This is called earning “passive income.”.
Another way to earn yield on Ethereum is to participate in so-called “decentralized finance” (DeFi) applications. These are dApps that allow users to lend or borrow ETH and other assets in a completely trustless manner (i.e.
, without the need for a third party).
Lending platforms like MakerDAO and Compound are two popular examples of DeFi applications that let you earn interest on your ETH holdings. Similarly, there are also “flash loan” platforms like Aave and Fulcrum that allow you to take out loans using your ETH as collateral and then repay the loan with interest.
So, there you have it! You can definitely earn yield on Ethereum by either holding ETH in your own personal wallet or participating in DeFi applications.