Before DeFi Farming with Ease, understand that nothing in this article is financial advice. The purpose of this guide is to provide you with educational content and to help you make more educated decisions.
The attraction of crypto
The loudest advertisement that’s been driving crypto adoption so far is achieving financial freedom and independence. For this reason, the vast majority of retail investors get into crypto, hoping it can magically lift their standard of living.
The sad reality is, most people lose money in the end. This can get ugly if someone’s financial position was not admirable to begin with.
The number of people who wanted to enter the world of crypto but ended up disheartened and disappointed from losing their money is too big.
At Ease, we think this has got to change.
A steep and slippery learning curve
Crypto provides a steep and constant learning curve since this field relies on constant innovation. Learning itself can be very costly, as there are many paths one can take while judgement gets constantly obfuscated by fear and greed. It’s easy to make mistakes, and almost all mistakes cost money.
As if bad financial decisions and a steep learning curve weren’t enough for the newbie, in crypto there are always those who will try to bait you into a scam. Many are just waiting for an opportunity to steal your private data and thus your assets, or hack your favourite protocol, inflicting complex and potentially far-reaching harm.
Therefore the most important thing for anyone’s financial well-being is to be set on the right track early while climbing the learning curve.
DeFi with Ease!
Ease strives to provide all the appropriate basics for anyone new to crypto and help them approach risks from the safe side. For example, Ease.org provides an easy-to-navigate Glossary of terms one will frequently encounter in the space. The team also writes new-comer-friendly articles like this current one, to help you start your financial adventure in DeFi and avoid all preventable bad-actor exposures.
At Ease, we literally have got you covered! You can completely eliminate the risk of malevolent actors and hackers by choosing our premium-free perpetual coverage.
That’s right – your DeFi endeavours are not only covered at no cost but also benefit from auto-compounding interest, saving you many gas expenses. Even when your DeFi protocols of choice suffer an attack, what you’ll pay is but a fraction of the cost you would pay for insurance premiums on other protocols – all this is based on our rigorous research of past hacks data.
With these major risks out of the way, your financial exploration in DeFi functionality will be much easier and, potentially, long-lasting.
So, what to do in crypto?
If you chose crypto with the intention to leave behind the failing fiat financial system in search of financial independence, I dare say crypto can provide what you seek. Everything has a price, however, and in order to gain more value and money, one must invest time and effort.
Firstly, the most popular ways to make some gains would be Trading and DeFi (Decentralised Finance).
Traders can get trapped
A proper analogy would be to compare Trading with hunting. Traders use numerous indicators and different types of trades, just like hunters who track down the movements of their prey and use a variety of traps to take the game home. This happens at Centralized (CEX) or Decentralized Exchanges (DEX) and akin to woods and hunting grounds. One must know where to go and when to be there to corner the prey.
The vast majority of crypto-newbies lose a lot of money trying to trade for the first time because just like hunting, there is a high risk for the unlearned and even seasoned stock traders have to be careful with crypto’s characteristics and unparalleled volatility.
Farmers can grow yield
DeFi’s farming utility is definitely the easier and safer experience for someone new to crypto to start seeing some increased income. That is because it has much more in common with actual farming. Depositing your assets in a general DeFi protocol is like sowing seeds and with minimal care on your part, they start growing and producing yield.
How so? It’s Decentralized Finance, the protocols use your assets to do work. They provide liquidity, give loans, borrow, arbitrage and all sorts of conducts already known in Traditional Finance (TradFi). In addition, there is some new and innovative utility, e.g. Ease’s bribing system for increasing coverage on certain protocols, and many more.
Even farmers need to be vigilant
Though these practices for financial gains aren’t magical, assets in the crypto space can magically vaporize, thanks to some unpredictable hacker’s wizardry. Attacks in DeFi have proven to be immensely destructive for the attacked protocols, but also for the whole ecosystem.
Furthermore, the freedom that crypto and DeFi bring demands high responsibility from every individual. After all, freedom doesn’t defend itself. So one must be vigilant and always do plenty of research into the DeFi protocols he intends to invest his assets in, as many such protocols are nothing more than a façade, offering huge returns that seem too good to be true. And they are.
Undeniably, the current dilemma for the crypto newcomer is obvious. With trading, it is risky for the unlearned, it’s harder than it seems and offers an easy and fast way to lose money. Then with DeFi farming, it is much simpler. It requires less time commitment, fewer skills to master and promises some return, be it more modest. Although risk in DeFi farming may not be as dynamic as in Trading; if you ignore its pitfalls you can get rekt in a snap.
Therefore, that’s why one should just DeFi with Ease!
DeFi farming with Ease
At Ease, we only allow thoroughly audited and solid DeFi protocols into our system. So, when you browse through the vaults of Uninsurance, you know you are choosing from the most reliable DeFi protocols right from the start. In short, this will potentially save you some bitter experiences, if you’re totally new to crypto and DeFi farming.
You can invest in a DeFi project yourself and then deposit the yield-bearing tokens you receive into its Unsinsurance vault. This way, you remove the risk of losing all your business to a possible hack.
If a hack affects a protocol from our ecosystem, the slashing your assets will experience is small in contrast with the standard cost of coverage premiums on other protocols. But if no such a hack occurs at all, you don’t pay a thing! In essence, ease secures your business from such risks completely for free, if no events happen!
Ease will make it even easier
Finally, if investing in a certain DeFi protocol is still too much for a newcomer, Ease will never let them down. Soon, it will be enough to just zap directly into yield-bearing ezTokens with inherent coverage, respective to the protocol of your choosing. To top it all off, you never have to operate your assets manually. Ease auto-compounds all the yields you earn to maximize your profits and also saves you all the gas fees from frequent restaking.
Undeniably, Ease provides unparalleled innovations in DeFi coverage, making the whole of DeFi more able to replace the current financial system. Also, it also helps drive crypto adoption by exposing newcomers to the safer side of DeFi farming right from the start. In short, be part of the crypto revolution, and start DeFi farming with Ease!
Thoughts at Ease
This is a new addition to our ongoing series of thought pieces about DeFi coverage. They are penned by the team and our community.
The previous pieces in this series are: