Day trading is not the only way of earning income from crypto. An investor can explore other avenues such as pool rewards. It is becoming highly popular although it is riskier than normal trading. However, its returns are more attractive.
Digitex has updated its pool rewards program this month where it will be adding 3 million $DGTX which is worth around $27k to the Uniswap pool rewards program.
To understand what pool rewards is and how you can tap into its potential, this guide is for you.
What is Yield Farming
Yield farming is an earning strategy in the DeFi sector that allows users to earn interest from their crypto holdings. The interest earned is in the form of cryptocurrencies. However, yield farming is different from crypto lending.
Crypto lending offers more security to the lender, unlike yield farming. The latter involves multiple digital assets and mechanisms on several platforms and protocols to allow the lender to increase their earnings.
An example of Pool Rewards
The technical aspects of pool rewards can be difficult to understand, but the below example can help you grasp the important aspects if you are a beginner.
Let’s suppose that you deposit ether tokens through MakerDAO (Oasis) and receive DAI stablecoin. Later, you decide to lend the DAI stablecoin to other users through the Compound Finance lending protocol.
By lending to others, you have created liquidity, and you will receive cDAI tokens in return to show the number of coins you have given to the pool. You later decide to transfer CDAI to another protocol for staking or lending, or you could choose to borrow against your holdings.
Because of all these processes and options available in yield farming, it may be too complex and risky for a beginner trader, but it creates more avenues for earning rewards.
How can I earn Digitex Rewards through Pool Rewards on Uniswap?
If you want to maximize your crypto income through pool rewards, opt for DGTX pool rewards through Uniswap. DGTX is a native token for Digitex exchange. Digitex has updated the program and this time, three million DGTX has been added to the pool rewards program.
Going by the prices of DGTX as of writing this article, the total coins added to the pool will have a value of $27,000 in monthly rewards for supplying liquidity to the DGTX/ETH trading pair on the Uniswap exchange.
The best part is that if you provide liquidity to the pool for more than thirty days, you will receive three times more rewards for optimal earnings.
Getting started on pool rewards with Digitex
To start getting pool rewards with DGTX, follow these easy steps:
Step 1: Go to Uniswap V2 and deposit the same amount of ETH and DGTX to offer liquidity for the trading pair.
Step 2: You will receive UNI-V2 tokens as rewards for offering liquidity. The tokens show the number of tokens you have added to the pool.
Step 3: Go to the Digitex Rewards platform, deposit UNI-V2 pool tokens for staking, and start earning a passive income.
By following the above steps, you will enjoy the full benefit of yield farming, which is maximizing passive income earned from cryptocurrency holdings.