Okto’s Earn is a type of financial product offering that allows users to earn passive income on their crypto holdings.
In traditional finance, banks pay interest on deposits, but in DeFi, users can earn interest by depositing their crypto in a pool of assets (liquidity pools). These activities are facilitated by smart contracts, which automate the investment process, pay out interest, thus eliminating the need for intermediaries such as banks.
With DeFi Earn, users can earn interest on a wide range of cryptocurrencies, including Bitcoin, Ethereum, and stablecoins such as USDT and USDC. Overall, DeFi Earn provides a decentralized, transparent, and often lucrative way to earn passive income on crypto holdings while also contributing to the growth of the DeFi ecosystem.
With Okto Earn, you can either stake your single token and earn interest (also known as APY) or you can invest in Liquidity Pools.
Staking is the process of locking your crypto for a certain period. In return, you earn interest by staking your tokens. For example, if you hold ETH in your wallet, instead of letting it stay idle, you can put your holdings to work by staking it on Okto and earning additional income on it in the form of APY or annual percentage yield.
A pool of crypto assets that hold funds and provide liquidity to a DeFi platform so that people can trade easily without any intermediary. This pool is created when liquidity providers (LPs) add an equivalent value of two tokens to the pool. It is mandatory to add an equal value of 2 tokens in a liquidity pool. In return, you earn interest for providing your tokens to a pool.
The return that you earn on your crypto investment. With APY, you earn interest on your principal amount as well as the interest, offering compounding returns.
They are like acknowledgement tokens that you receive in return for depositing or staking your token within the “Earn” feature. For example, for every 1 MATIC staked, you would receive 1.3 MATICX. Furthermore, if there are liquidity pools for these receipt tokens, you can invest them in those pools and earn additional interest on the same.
Hooray! Now your crypto will make passive returns for you!
Here is a step-by-step video guide to invest using “EARN” on Okto.
Please note: if the payout duration exists, you will only be able to claim your rewards after the payout period, or else you will receive your rewards instantly after the exit order.
You can earn passive returns ranging from 0.5% -50% or even higher*.
Earn offers a range of passive earning opportunities that vary in returns, from 0.5% to more than 50% per annum. However, it's important to note that higher returns are usually associated with higher risk factors that can lead to a depreciation in the invested amount.
Some of the primary risks associated with higher returns are:
Before investing in high-yield Earn pools, it is important to research and understand each of these risk factors to make an informed decision. By understanding the potential risks, you can invest in Earn pools with higher returns that match your risk tolerance and investment goals.
Let us make it easy for you to start your journey by sharing a quick video:
Click on the Earn tab and choose to deposit your preferred crypto asset from the listed crypto assets under the Earn feature. Next, choose the lock-in duration, review the details, and confirm.
Over 1000 tokens are available under Earn. We will continuously keep adding more tokens.
Assets can be withdrawn depending on the lock-in duration.
The minimum period for which you are required to lock in your crypto in order to earn interest. You cannot do anything with your crypto during that period.
After you exit your Earn investment, sometimes it may take a few days to process your returns after which you can claim your rewards.
With Tradable Receipt Tokens, you can exchange your receipt tokens for another token while with non-tradable tokens, you cannot exchange your tokens.
Go to the “Portfolio” tab then click “Your investment”. You will be able to view all your investments.
The loss that occurs when the price of the asset you provided to the liquidity pool changes compared to the price when you initially deposited it. The larger the price change, the greater the impermanent loss you will experience.
You will be charged a gas fee in adding/removing liquidity to/from Liquidity Pools.
*With high returns, comes high risk. Users should do their own research before investing in crypto.