DeFi Opens Doors That Used To Be Closed
Plus, The Crypto Connection resumes on March 20th
I’m not just a landlord these days, I’m a banker, too.
Thanks to a few calculated moves the other day, I managed to turbocharge my rental income, maximizing it to push profits even higher. I’m able to do it because of decentralized finance (defi) on the Algorand blockchain. It’s one of the many reasons I like that platform, right alongside the low fees that make transactions like these simple and accessible.
Here’s the breakdown of the trade:
Those real estate NFTs earn me daily rental income. Up until now, I held the profits in my Lofty account, allowing it to grow.
This week, Lofty announced users could withdraw rental earnings in the form of Algorand’s native token $ALGO, or $USDC, the stablecoin tethered to the price of the US dollar.
At the same time, Algofi is offering a lending APR (annual percentage rate) of 3.18% for $USDC coins, along with a 4.92% bonus.
Algofi is a lending and borrowing platform that also operates on the Algorand blockchain.
Algofi pays APRs and bonuses in $ALGO.
Within a few clicks, I withdrew my rental income into my Pera Algo wallet (the official wallet of Algorand) in the form of $USDC.
Seconds later, I linked those coins to the $USDC lending pool on Algofi.
Now, my USDC coins will earn a much higher interest, and provide me with more profits.
It only took a minute or so to complete this transaction, but it changed everything for me. Now, my rental income from Lofty is maximized in a way I never expected. and my $USDC is earning a much higher rate than any local bank would ever give me for deposited dollars.
In an inflationary world, that matters.
That’s also the promise of defi— it opens up doors that were once shut to retail investors. What I described above is just one way people can make the sector work for them—there are many combinations and applications users can explore to benefit their needs. As Algorand and other blockchains mature, expect many other creative opportunities.
The fact is, things have changed because of the rise of crypto. People no longer have to use traditional means to build wealth or create passive income streams. Instead, these new platforms provide avenues to moves once limited to accredited investors and corporate sharks. And that’s amazing.
Welcome to the new world of finance.
Plus…
There’s still time to get tickets to Bitcoin Miami 2022! Don’t miss these savings with my code:
Finally…
I’m taking a week off for spring break! That’s the beauty of being my own boss—I can take time off when I need it.
Don’t worry—I’ll be back! This newsletter will return on March 20th, 2022 with all kinds of original content! If you have an idea for a post, feel free to reach out! I love hearing from readers!
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.