When the domain name of cryptocurrency pros and whales, decentralized finance (DeFi) has become a lot more accessible lately, due to an influx of user-friendly platforms and an increasing library of resources surrounding DeFi.
However, while DeFi is becoming more and more accessible to the regular cryptocurrency consumer, really making the most of it is not quite so simple. With that in mind, we have a look at some of the most frequently overlooked ways to make the most of what DeFi has to offer.
Transaction fees have quickly grown to be a serious problem for many Ether DeFi users, because these have lately reverted to extortionate and possibly unsustainable levels.
Today, with Ether fees now averaging at greater than $10 a pop, it’s not unusual to invest up to 10 percent of a transaction’s value on its own transaction fee alone — ingesting a serious chunk of the earnings for smaller DeFi investors.
Luckily, there is now a variety of solutions in place which may be used to prevent the large fees that usually arrive with DeFi transactions.
Celer’s Layer2.finance is just one such option quickly gaining momentum among DeFi users, due to its capability to cut transaction fees down to just a very small fraction of what users are accustomed to.
This platform is a layer two scaling solution to your Ether DeFi ecosystem and allows users to access a vast array of DeFi programs — such as Curve, Aave, and Compound — using minimal transaction fees. It accomplishes this by firmly aggregating the deposits of numerous users into a single layer 1 transaction to minimize fees, while allowing users to easily and safely move their funds between programs at a minimal cost.
After all, while volatile cryptocurrencies could possibly be earning an impressive APY in a yield farm, liquidity pool, open financing protocol, or some other DeFi protocol, they may be shedding considerable market value — which may make these profits moot.
But while a large proportion of investors simply expect their returns outweigh any probable losses incurred by the underlying asset, others take out protection to ensure they are protected on the downside.
One of the simplest ways to accomplish this is by opening a short position utilizing a decentralized options trading platform like Premia.
The platform also includes a state-of-the-art peer-to-peer marketplace, where users can source liquidity for custom options without relying on centralized trades and custodians. Here, users may trade a variety of options and hedge their resources, protecting themselves from volatility while they bring in yield.
Making the most of your hard-won cash is one of the largest challenges that include investing — doubly so in the cryptocurrency industry, where yields may vary greatly from platform to platform.
But extracting the maximum value from the idle assets is no easy task, due to the sheer number of different investment options and yield-bearing platforms in the DeFi area. As a result, it may become a time-consuming undertaking to keep on top of things, while transferring your money around to optimize your yields.
This is especially problematic once you consider the challenges that include transferring funds across several chains, on account of the cost of bridging assets from one chain to another and maintaining accounts across multiple platforms.
Roseon, an aggregator for DeFi and CeFi platforms across multiple chains, which helps resolve this issue by supplying an program that helps users maximize their returns. It accomplishes this by enabling users to access a vast array of yield-bearing platforms from a single port, while safely aggregating yields from several areas to keep fees to a minimum.
The stage is particularly well-suited for novice investors, due to its focus on legal compliance — with Roseon looking to become one of the very first DeFi aggregators to function under a license. This provides an additional layer of security to DeFi users, who may be wary of dealing with otherwise faceless DeFi apps.
Disclaimer: This guide is provided for informational purposes only.