There are plenty of ways to earn passive income with DeFi, so let’s break it down. First, you’ve got yield farming, where you deposit your crypto into liquidity pools and earn rewards. It’s like earning interest, but riskier because of volatility and impermanent loss. 

Losses could also be realized if you’re using a manager for concentrated liquidity pools. So, you really need to be mindful and ensure the platform you’re using makes the rewards worth the trouble.

Then, there’s staking. You can lock up your crypto in supported networks and get paid in tokens for helping secure the blockchain. It’s easy and often involves lower risk than farming. 

Lending is another way to earn passive income with DeFi — platforms let you loan your crypto to others in exchange for interest. Just keep an eye on the lending terms and risks involved. If you’re feeling bold, some platforms offer protocol-specific rewards for holding or using their tokens. 

Of course, none of this is guaranteed, and there’s always the risk of hacks, scams, or market downturns wiping out your gains. Diversifying across strategies and doing your research are your best defenses. DeFi offers opportunities to put your crypto to work, but you have to weigh the risks and rewards before jumping in. 

Start small, experiment with different platforms, and don’t go all-in unless you’re ready to lose what you invest. It’s the Wild West out there, so tread carefully.