In this guide, we are looking at some easy ways to earn passive income through the Bolide Finance decentralized app (dApp). Specifically, we highlight the two main ways or strategies to invest in DeFi within Bolide, offer a step-by-step guide to getting started with the dApp, and explain what each method entails. Additionally, we shall provide some benefits and drawbacks to investing in DeFi through Bolide.
What is Bolide Finance?
Several methods are available at the disposal of such investors, with the more common ones including lending for interest, yield farming, and staking for rewards. Coincidentally, these represent three of the strategies offered by Bolide to investors that wish to invest in DeFi through the platform.
The different strategies offer varying rates of return, as do most investment strategies, even in traditional securities. In the cryptocurrency space, most investors that have been involved in DeFi end up investing in separate services offering these strategies as standalone products.
Bolide Finance is offering to aggregate all these disparate but related investment opportunities and provide them to its users through a single interface. This will give its users the benefit of accessing multiple digital assets that can be invested in three different ways, which are:
- Lending & borrowing;
- Yield farming.
It’s worth noting that all three strategies offer users an opportunity to earn passive income whereby an investor only has to provide limited access to their assets and then can sit back and wait for rewards to accumulate within their crypto wallets.
Ways to Earn Passive Income with Bolide Finance
Let’s consider what each of these passive crypto investment opportunities entails before highlighting how to use the platform to your advantage.
Staking is a popular method of making passive income in blockchain, and Bolide is making it even easier. There are two ways to stake tokens:
- Directly by participating in a network’s governance and transaction validation; or
- Indirectly through staking firms.
With Bolide Finance, you get to stake Bolide’s native BLID tokens directly on the platform and get a chance to earn high returns on your capital. BLID is the platform’s native token whose utility is to serve as a reward for investment capital and a staking asset.
Once a user has been apportioned their BLID tokens, they have the option to stake them with the platform for high APY (annual percentage yield).
APY yields vary depending on market conditions and the nature of the network offering the rewards. On Bolide.fi, the BLID staking reward is currently at 13% APY.
2. Yield Farming
To understand the term ‘yield farming,’ it helps to split it into two words – ‘Yield’ and ‘Farming.’ Essentially it refers to farming for good returns on one’s assets. In the same way, an individual may ‘shop’ around for better interest rates on savings across multiple bank account providers.
However, yield farming gets a little more complicated than just shopping around. Once an investor finds a DeFi platform offering good returns, they have to participate in a service that guarantees them their rewards. The service may include providing liquidity for decentralized exchanges (DEXes), staking cryptocurrencies, or even lending your assets to other platform users.
With Bolide Finance, users’ funds are deposited into lending protocols such as Venus or Ola. These lending services use these funds to create liquidity pools on decentralized exchanges, including ApeSwap and PancakeSwap. Fees from lending protocols and the DEXes are credited to Bolide according to the proportion of investment.
Finally, Bolide apportions the rewards to its users in the form of BLID tokens. Users can thus opt to stake their BLID for more passive returns.
Video explainer: How to Use Bolide Finance dApp?
How to Get Started with Bolide Finance
Before you proceed, it is important to download, install, set it up and fund it. Also, critically, ensure to add BNB Smart Chain to the wallet because the Bolide.fi dApp runs on this EVM-compatible blockchain. Check out this guide on the same.
Once you have gone through these setup steps, we can go on to the more substantive parts of this guide, connecting MetaMask to Bolide Finance and starting investing passively.
Step 1 – Connect your Wallet to the Bolide.fi dApp.
Navigate to the Bolide Finance website here and click on the large Launch App button, as shown below.
This action will launch the app on a new browser tab which looks like this…
In some instances, the website will automatically send a connection request to the MetaMask wallet and prompt a sign-in popup. If not, click on the [Connect Wallet] button on the top right side of the page to connect your wallet.
A wallet selector popup window will appear, allowing you to select amongst the available options, as shown here.
Click on your preferred choice. In our case, we have MetaMask installed on our browser therefore, we select MetaMask from this window.
This action will prompt the MetaMask wallet to display a login window. Provide a password to access your wallet.
Once you provide the correct password, the next step is to authorize a connection between Bolide.fi dApp and your MetaMask wallet. Choose a preferred account, ideally the one with the token that you want to deposit to Bolide Finance.
Click on the [Next] button to proceed to the authorization step after selecting an account.
Confirm that you allow Bolide Finance dApp to connect and access assets in your MetaMask wallet by clicking on the [Connect] button.
You have successfully linked your MetaMask wallet to the Bolide dApp. You will notice on the top right side of the app’s home page that your wallet’s address is displayed, showing that the Bolide is connected and to which account within your wallet it is connected.
Step 2 – Deposit Funds to the Bolide Finance dApp.
To deposit funds into Bolide, select the token or coin you wish to transfer from the options available, which are:
- Stablecoins such as USD Coin (USDC), Binance US Dollar (BUSD), Tether USD (USDT), and the DAI;
- Bitcoin (BTC);
- Ethereum (ETH);
- Bolide Finance native token BLID.
The stablecoins are the most popular assets deposited into Bolide Finance, with a total of $5.56 Million in value currently locked in the dApp.
In our case, we opted to deposit the stablecoin USDT and selected the first tab. Click on the [DEPOSIT] button on the right side of the selected tab.
Bolide will prompt you to select whichever stablecoin you wish to deposit.
Select a token with a sufficient balance to facilitate a successful transfer. In the next step, provide the amount of token to transfer as shown below:
Next, click the deposit button. This action will send a transfer request to MetaMask that requires your authorization.
Look through the transaction details, paying attention to the gas fees and the token you want to transfer. If the details are correct and you are comfortable with the fees stated, click the [Confirm] button to authorize the transfer of your assets from your wallet to a Bolide smart contract.
The dApp will display a success message if the transfer was completed successfully.
You have successfully deposited funds to the Bolide Finance DeFi dApp. Going forward, Bolide will take over the investment side and choose the best strategy to earn you the highest returns.
Step 3 – Withdraw Returns.
The final step of your passive investment journey is to withdraw your returns. Bolide converts all earnings into the native BLID token, which is then distributed to all investors according to their investment amount.
These tokens are deposited automatically into the user’s wallet address as and when the rewards are earned from the respective strategies. No further input is required from the investor once they have deposited their assets.
The BLID tokens can be converted into other assets through a decentralized exchange or a crypto bridge that is used to transfer assets between different blockchain networks.
Pros and Cons of Investing with Bolide Finance
- As an aggregator, Bolide.fi dApp ensures that invested assets are earning the owner the highest returns at any given time;
- The dApp offers users a hands-off experience ensuring a truly passive income to investing in cryptocurrencies;
- There is no minimum investment amount;
- Yield farming rewards are made in the native BLID token which can then be reinvested directly through staking for even larger gains;
- Assets are not subject to lockup periods allowing owners to withdraw at any time;
- dApp users can withdraw part of their investments or the whole amount with no limitations;
- The platform supports several of the major cryptocurrencies, including BTC, USDT, and USDC assets.
- Investment strategies are only limited to staking and yield farming. However, users are allowed to choose among the various vaults into which to invest their assets;
- Users lack the preference of choice for their rewards as these are only paid in the native BLID token.
Investing in DeFi platforms is becoming increasingly popular, and with such popularity, it is easy to get lost in the research phase looking for the best returns on hundreds of different platforms. Aggregators such as Bolide Finance make it easy to scan the market for the best opportunities offering the highest returns.
It not only saves investors time and valuable resources, but it also increases efficiency and profitability. Not to mention that it is also safer to use an aggregator than jumping between platforms and risking your assets on unproven applications.
Bolide Finance might be a new dApp, but given all these benefits, it is a worthy consideration for those seeking to earn passive income from DeFi apps but have limited time, resources, and expertise to look for such opportunities.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs on Earning Passive Income with Bolide Finance
What is Bolide Finance?
Bolide Finance is a DeFi investment aggregator enabling users to earn passively from their deposits that are put into use in various ways to generate income. The platform supports three investment strategies: staking, yield farming, and lending.
What is Yield Farming?
Yield farming is a crypto investment strategy whereby a token holder leverages a DeFi platform to generate an income using their deposits. Depending on the platform, the user could partake in lending tokens for interest rewards, providing liquidity to DEX platforms, among other activities.
In what ways can I earn passive income on Bolide.fi?
Bolide Finance enables users to earn passive returns in the following ways:
- Yield farming;
The users get to choose the vault into which they deposit their assets, but the platform chooses the investment strategy that is ideal according to market conditions with the aim of maximizing returns. Additionally, once returns have been earned in the BLID token, the user can reinvest in staking for even greater passive returns.
What is the BLID token?
BLID is Bolide Finance’s native cryptocurrency, initially launched on the popular Ethereum blockchain. It now exists also on the BNB Smart Chain through bridging and serves as a reward and governance token. Whenever capital yields a return through the various supported yield farming strategies, Bolide.fi makes payments in BLID, giving users the option of staking the token for further gains or converting them to other assets.