Bull Or Dip, Defi Lovers Never Lose

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Decentralized Finance ( DEFI) offers several ways for crypto lovers to leverage and generate rewards for themselves. The beauty of Defi is that one can comfortably interact with the system from the comfort of his home and enjoy a higher APR above what we observe in the traditional banking system.

Before the coming of Defi into the crypto sphere, crypto lovers mostly engaged in the short-term and long-term trading of crypto assets. Profits were mostly earned by buying and selling low. This made it difficult for crypto lovers to generate rewards for themselves during the dip.

Defi introduced staking ( naked staking and LP staking ), yield farming, crowd loans, etc. This offers Defi users the opportunity to generate passive rewards with their crypto assets. They can be earning rewards with their crypto assets while waiting for the bull.

With this, Defi users continue to earn rewards from their crypto assets both during the dip and during the bull. They are thus set apart from ordinary crypto investors who are either into trading or are practicing the buy the dip and sell the bull system.

A Defi user who earns 1 Matic per day by supplying MATIC-USDC pair to a pool will continue to earn 1 Matic or even more during the dip because some of the stakers may likely pull out their stakes during the dip thereby increasing the APR for those who are still in the pool. The monetary value of the 1 Matic may have been reduced due to the dip in the market but he earns something, and when the bull comes up afterward, his profit will be doubled.

There are indeed some challenges associated with Defi services such as impermanent loss, delay in receiving the crypto assets after unstaking ( when Validators are involved), etc. But when you consider the reward from it., especially the fact that they are passive, one can ignore all these challenges. Impermanent loss can be avoided because the loss only comes to play when the staker withdraws the LP at the point one of the tokens is on a bull.

In the end, we all have different strategies that work for us. You should go with the one that is more convenient for you. I am more comfortable with Defi projects because I pay myself salary through my monthly rewards.

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