# Passive Income Using Cryptocurrency: Simple & Advanced Techniques

Everyone who has ever used a bank has probably seen the abysmal interest rates they offer in terms of passive interest. The highest I've ever seen is 0.5% APY, but most are usually 0.001 - 0.003%. Cryptocurrency markets have far higher rates and are just as if not more safe.

As I write this it is fairly easy to get over 20% APY (with token rewards on top of that) in Stablecoins (SCs). I'm going to go over the two methods I use to make a decent amount of passive income.

Polygon (MATIC) has recently created a huge incentive to use their platform in two simple ways. (1) using their natural staking site https://polygon.curve.fi and (2) utilizing AAVE through https://app.aave.com.

(1) stakes SCs in the form of DAI, USDC, and USDT. On top of the APY it gives you it presents another reward in MATIC coins at a higher rate. If you head over to the Pools section of the website it says that your SCs have a 3 to 15% base APY with 10 to 40% APY in MATIC. These rates change depending on market liquidity and total network staking.

(2) allows you to deposit the same SCs, but also MATIC, WETH, WBTC, and AAVE coins. With this collateral you can borrow up to a certain % for other use however you please. The most you can typically borrow is up to 80%, but I'd only recommend doing 70% or lower. All the coins have base APYs around 1 to 5% and MATIC rewards up to 25%. Again, however, these %'s change for a couple reasons

So, here's how I recommend you use these two together. With your initial capital go to (2) and deposit your SCs (via the USDC SC). Borrow 70% as USDT and deposit that in (1). Everyday collect your MATIC tokens and deposit them into (2) to further increase your rewards.

To give an example using real-time numbers: Take $10k and deposit it on (2). Borrow$7k and put it in (1). The %'s as I type are 1.93% for USDC with 2.34% MATIC reward, 3.79% for USDT with 10.07% MATIC reward, and (1) gives 5.09% with 19.73% MATIC rewards. To simplify the amount made at the end of the year (True APY%) I would've made $2869.30 and my borrow amount would increased by$265.30 IE I made \$2604, a 26% APY. This is also not considering the obvious fact that I can reinvest the rewarded MATIC coins, but the math to do that would be considerably harder TBH. Overall, the small amount that the borrowed collateral increases by is entirely negligible and actually semi-helpful due to the higher MATIC rewards % than base APY. These %'s change and the real-time ones I see above are lower than typical, so the revenue possible is closer to 30 to 45% if I'm being honest.

I only see the price of MATIC increasing, if just slowly, so these rewards will come in handy down the road. I hope this article helps you earn better passive income.

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