How To Lend And Utilize Dai Like An Expert

This post teaches you the best way to lend your dai. The easy approach allows you to maximize return and minimize risk then utilizing your dai.

Lending dai is not a one step process, or is it? This guide is a way for anyone to understand how to lend dai. The traditional way, or the easy way using Outlet. Lending dai is a way to earn interest on your dai. Since dai is a stable coin equal to $1 lending dai is a fantastic way to earn a return on your dollars. There are a few definitions and terms you need to understand before we break down how to lend your dai and use DeFi and cryptocurrency lending protocols to your advantage.


Stable coins - Stable coins are what you would typically lend to a DeFi or lending protocol. These stable coins bring stability to the world of cryptocurrency, They are equal to $1.


DeFi or lending protocol - This is defined differently by everyone, but I would sum it as any way to gain a return on your assets using cryptocurrency in a decentralized manner. Lending protocols enable you to be the bank and back any type of cryptocurrency loan.


Dai - Dai is a stable coin created by maker. They are the focus of this article. Tying a decentralized stable coin into the mix with decentralized protocols has proven to have product market fit within the cryptocurrency space lately.


Throughout parts of this article we will mention Outlet. Outlet makes all of this as simple as can be. We are a mobile app that enables users to easily lend and earn interest on their dai. We highly recommend that you use Outlet when you are lending out dai or supplying dai to some sort of lending protocol on Ethereum.

How do I get or purchase Dai?

Assuming you have not yet downloaded the Outlet app you can obtain dai on several cryptocurrency exchanges. Some of the most recommended would be Coinbase or Binance. However Outlet is by far the easiest to do the second half of this tutorial and will maximize your returns.

Who do you lend dai to?

You would typically lend your Dia to some sort of protocol. Protocols are some type of debt marketplace where in some way people are issues ing loans of liquidity in some type of capacity. These loans are often overcollateralized. Meaning that if you want to take out a $100 loan you would need to supply far greater than $100 to to take out the loan. This makes these types of loans very safe to back from a financial aspect.


Step by step process on how to lend or supply dai in a lending protocol


Obtain your Dai - If you choose to not use Outlet this guide becomes more complicated. You will have to supply dai and go through the rest of the steps, meanwhile Outet takes care of it for you.

Send your dai to a wallet - If you choose to not use Outlet this guide becomes more complicated. You will have to supply dai and go through the rest of the steps, meanwhile Outet takes care of it for you.


If you choose to not use outlet you will have to use some sort of wallet, such as metamask to communicate with Ethereum Dapps.

Figure out where you are going to supply your dai to - If you want to earn interest on your dai or lend out different assets using a DeFi protocol I would suggest that do your due diligence as to what you are going to do from this point onward. Different protocols have different pros and cons.


The industry leading protocols are compound.finance and dy/dx at this point in time.

Supply - Once you have selected the protocol you can use their documentation to actually supply their protocol.


Every DeFi protocols is different. The way to begin the process of earning interest starts at the supply phase. You will have to do your own due diligence to figure out what will work best for you.


Tools used to lend Dai

There are several ways and tools you can use to lend dai there is not necessarily a right answer for anyone. The most popular tools to use Dai currently are Metamask and Compound.finance


We hope that Outlet will be used just as much if not more often that current tools consumers use. You can do what you would need with multiple tools in one tool using Outlet.


Metamask - Metamask is a really common web 3 mobile wallet. It is a web first wallet. It will cover everything on the Ethereum blockchain and enable you to interact with any smart contract.


Compound.Finance - Compound is the industry's leading lending protocol. Supplying your dai to compound will yield you around a 12% yield at the moment.

How much interest do you earn lending your Dai?

The amount of interest earned on your Dai varies at any given time and the amount of interest earned varies per platform as well as the method for calculating the amount of interest you earn lending dai.


Currently the best way to earn the most interest on your dai is to use Outlet. Our platform automatically lends to highest yielding lending protocol in or order to gain the most interest on your dai.


The current interest rate is around 10% when you lend or supply dai to a lending protocols smart contract.



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Originally Published By Outlet
    Categories:
    DeFi

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