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Editor: Crypto Pirate

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11-21-2022

Hello GZX community, and happy Monday. Today I wanted to go over two ways you can make passive income with your GZX tokens, as well as differentiate between the them. Now passive income is something we should all be after, as it is one of the keys to wealth generation, since you literally don’t have to do anything on a daily basis to earn. And during bear markets passive income is even more important, whether its to supplement your regular income, generate capital flows for other investments, or merely to compound the assets you already hold.

Staking

The first method we will discuss is staking, where you receive an APY/APR percentage on your assets merely for holding them in a specific exchange or protocol that offers said reward. These percentages can range anywhere from 1% to 10%, as anything much higher than that is unsustainable long term. The Globiance exchange offers varying staking options for the GZX token, with APY’s as high as 10%, which is actually compounded over time when those rewards are added back into the original stake. Staking is an easy and safe way to generate passive income on your assets.

Liquidity Pools

Now the other option is using your GZX tokens to supply liquidity to various yield farming pools on platforms like the Globiance Dex and the Wanchain native Wanswap. If you choose to become a Liquidity Provider(LP), then you will receive 0.3% of every transaction that takes place in the pool you delegated your assets to. This is another great way to generate passive income, but there are some intricacies that must be noted. The biggest by far being impermanent loss. Impermanent loss occurs when there are price fluctuations with the asset pairing that you delegated as an LP, and arbitrageurs(traders who take advantage of inefficiencies in the market andsimultaneously purchase and sell an asset in different markets to exploit tiny differences in their prices) come into balance out the pool buy buying and selling said asset. This results as an apparent loss on paper, but is only an actualized loss if you withdraw your assets from the liquidity pool. If you are patient and leave it be, eventually the value of the pairing will balance out again. 

Globiance and Wanswap have options for using other assets such as XRP, XDC, GBEX, and WAN as well, giving you ample opportunities to earn. Staking and liquidity providing can be great ways to generate passive income, but it id always wise to know the risks and potential pitfalls before ever jumping headfirst into anything, particularly as it pertains to finance. With ethe rise of Decentralized Finance (DeFi), we have the opportunity to be our own banks, and take our power and financial freedom back. But we must be smart, patient, and do our research so that we make money and not lose it.

Below are three links to help you better understand what all is entailed with becoming an LP, and the instructions are easy to follow with graphics to accompany them. The path to financial freedom starts with a single step, and I hope this has helped to make the path more clear. Cheers mates.

Liquidity on WanSwap Explained. In this article, we will explain how… | by Dimitri | WanSwap | Medium

How to Use WanSwap. In this guide, we will explain how to… | by Dimitri | WanSwap | Medium

What is Impermanent Loss? DEFI Explained – Finematics

Liquidity pools for GZX

Globiance DEX: https://dex.globiance.com

Sc:xdc16b8ca1c5b0214c1fb1f37fba7ed3a7e63833c59

Wanswap: https://www.wanswap.finance/#/swap

Sc: 0xbD4191828AEFF23Fb9E0249A5AE583a4B9425e49

Staking GZX

Globiance: https://globiance.com