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EARN PASSIVE INCOME WITH DEFI VIA MARKET MAKING
EARN PASSIVE INCOME WITH DEFI VIA MARKET MAKING
WHAT IS THE OVERALL GOAL?
WHAT IS THE STRATEGY?
WHAT DO I PROVIDE?
HOW DO I GET STARTED?
WHAT ARE THE RISKS?
WHAT ARE THE OPEN QUESTIONS?
WHY DON'T I JUST HOLD ETH?
SUMMARY
RESOURCES
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RESOURCES

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DIVERSIFY YOUR DEFI PORTFOLIO

How do I become the bank?
THE TRUE SOURCES OF DEFI YIELD

Description

DeFi offers various ways to earn income similar to traditional banking. And like them, you want to diversify into various allocations. In addition, with DeFi you have access to other financial instruments previous available to only Wallstreet and Hedge Funds.
The table below shows the different DeFi income types and an example allocation of each. Those labeled in Green are recommended while Red are riskier (and for my portfolio - I’m not interested in it at this stage).
Important Note: This is my current portfolio percentage just for DeFi and is subject to change at any time. Ideally, DeFi is a subset of your crypto portfolio which is a subset of your traditional investment portfolio (e.g. Stocks, Bonds, Real Estate, etc).

DeFi Income Types
Category
Portfolio %
Yield Type
Description
Example
Status
DEFI
13
25%
HODL
Just hold your Crypto and earn via capital increase
ETH, BTC, etc
Completed
15%
Interest
Earn interest by depositing into an CeDeFi exchange
Coinbase, Blockfi
Completed
25%
Stake
Earn Income by validating transactions via staking
ETH2, other POS blockchains
Completed
35%
Market Maker
Earn income by providing liquidity (this document)
Uniswap, other DEXes
Completed
0%
Lending
Earn interest by lending your crypto
​
Not Interested
0%
Inflationary Rewards
​
​
Not Interested
0%
Protocol Fees
​
​
Not Interested
0%
Options Contracts
​
​
Not Interested
0%
Insurance
​
​
Not Interested
0%
Arbitrage
​
​
Not Interested
0%
Yield Optimizers
​
​
Not Interested
0%
Derivatives
​
​
Not Interested
0%
Governance
​
​
Not Interested
100%
Sum
100%
Sum
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Example % Portfolio - DeFi Income Types
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Read for more info on DeFi Yields
⁠
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incentivized.substack.com
⁠
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