March 31, 2025
Stack Your Ethereum Wins with DeFi
Dear Subscriber,
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| By Marija Matic |
If you are new to crypto, you may not yet be familiar with “decentralized finance,” or DeFi.
Even if you’ve been around the blockchain a time or two, you may still feel fuzzy on what DeFi is … and how to use it.
That’s why I’m here: To show you how you can use this incredible technology to generate regular payouts from the crypto markets.
In my Crypto Yield Hunter publication, I show members how to navigate the world of DeFi to target double- and triple-digit-yield opportunities … all with a focus on capital protection.
My secret is a DeFi strategy that can work in all kinds of markets.
What Even Is DeFi?
Before we can get to my strategy, you need to understand what DeFi is and how it works. It is so different from what you may be familiar with that a thorough understanding is called for.
DeFi is a sector within crypto. It aims to remove third parties and centralized institutions from financial transactions.
DeFi allows you access to financial platforms — that offer lending, borrowing, trading, insurance and interest on your crypto — without you ever needing to give your crypto to a third party.
To make this system work,
- Decentralized applications rely on people like you and me to lend their tokens.
- They then use the loaned liquidity to enact smart-contract agreements.
Note: Smart contracts are “if/then” algorithms. If a condition is met, then the code will be enacted. Smart contracts are the backbone of DeFi, which allows platforms to operate. - And in return, depositors receive a reward.
In this way, tokens that would otherwise just sit in your wallet can be put to work. In short, they can earn you a yield while you wait for the next rally.
But the biggest hurdle of DeFi is that you alone are responsible for your assets.
Unlike TradFi, or even centralized crypto platforms, there is no middleman taking a cut … but there’s also no one else to walk you through a transaction.
That means you need to handle everything from storing your own crypto in a self-custody wallet to enacting transactions on your own. And there’s no help desk to call if you accidentally buy the wrong asset or send your crypto to the wrong wallet.
That prospect can be daunting.
But if you are willing to wade a little further into new waters …
Put in a little more effort …
And learn to be more disciplined in managing your portfolio …
You could make your crypto work harder for you. Again, no matter whether cryptos are trending up, down or sideways.
And you can start with a crypto you’ve heard about and may already own, Ethereum (ETH, “B+”)
Instadapp: The “Lego” Strategy
There are multiple different platforms you can lend your liquidity to in return for a reward. But one I want to draw your attention to Instadapp.
It works like Legos — the building block toys — by collecting and connecting its users to the best features from the most popular decentralized apps. And it does so without the need for you to interact with those apps separately.
Instead, Instadapp handles everything in the background.
It uses your ETH to help secure the Ethereum network and does other money stuff, like lending, too. In addition, Instadapp spreads out fees, making it way better to use than managing everything yourself and paying lots of fees.
And, at the time of writing, it offers a 7.44% APY. Though, as is typical in DeFi, this yield is variable.
Even better, this yield is paid in ETH tokens.
That means this strategy allows you to earn extra ETH now … and enjoy the boost in value when the broad market rallies, as Juan Villaverde’s Crypto Timing Model predicts we’ll see later in Q2.
Before you decide to jump in, I do need to warn you of two notable risks.
First, any DeFi opportunity comes with inherent smart-contract risks. That’s because smart contracts can have bugs or become targets for hackers.
However, Instadapp has undergone several security audits, all of which are publicly available to review on GitHub. And it has an excellent track record with its security.
These are just two of Instadapp’s public audit categories. Source:
GitHub.
Click here to see full-sized image.
Second, ETH’s volatile price adds another layer of risk.
Fortunately, as Juan explained recently, the threat of additional downside is limited right now. That’s why I’m bringing this opportunity to your attention.
Now, you will need a few tools before you can hop into this opportunity.
- First is a MetaMask wallet. This will create your unique “keys” that will allow you to interact with and approve transactions in DeFi. You can learn how to do that in this previous Weiss Crypto Daily update.
- Second is an Avocado wallet. It’s through this wallet that you can connect to Instadapp. You can learn how to set up your Avocado wallet on the help.avocado.instadapp.io website, under Guides. Select the one titled Creating an Avocado account.
Once you have both wallets set up and linked, and you’ve sent some ETH to your Avocado wallet, you’re ready to deposit it in Instadapp. You can review the steps in the How to use Avocado for Instadapp Users guide on the Guide page on Avocado’s website.
This strategy may not be for everyone. Dealing with DeFi positions requires monitoring more than just price action. You also have to consider …
- Whether the yield you receive will offset any impermanent loss
- The trading volume of the platform, which impacts how high your yield will be
- The liquidity of the platform
And more.
But if you’re willing to dive in and take on a more proactive role in your crypto strategy, DeFi opportunities like these could help you make the most out of your crypto holdings.
And if you are ready to take this spin around the blockchain, make sure you have enough gas — that is, USD Coin (USDC) tokens to pay for fees — in your Avocado wallet for these transactions.
Best,
Marija Matić
P.S. If you’re looking for more income opportunities and DeFi doesn’t quite feel right for you, I encourage you to attend my colleague Nilus Mattive’s special presentation, 60-Second Income, tomorrow at 2 p.m. Eastern.
In it, he’ll show you the TradFi strategy you can use to immediately collect up to $1,000 your first week.
The presentation is free to attend. All you need to do is save your spot, then tune in tomorrow, April 1, at 2 p.m.
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