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Question

How does decentralized finance make money?


Answers (1)

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Arsalan Afzal
Feb 22, 2022 06:22:51

There are a few ways that decentralized finance makes money. One way is by charging fees for the use of its services. For example, MakerDAO charges a fee for users to borrow DAI stablecoins. Another way is through the generation of return on investment. For example, Compound charges interest on loans and allows borrowers to earn interest on deposits. Finally, another way is by selling tokens. For example, 0x Protocol sells ZRX tokens to help fund its development.

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