In DeFi, passive income is earned by supplying crypto assets to protocols that pay you for participation: stake ETH to a validator and receive ~4% APR in fresh ETH; deposit stablecoins into Aave and collect variable interest from over-collateralized borrowers; add token pairs to Uniswap liquidity pools and earn a share of trading fees while accepting impermanent-loss risk; or farm governance tokens by locking LP receipts, boosting yields above 20% until emissions taper. Liquid-staking derivatives like stETH let you keep exposure while re-using the receipt elsewhere, and yield aggregators automatically rotate funds to the highest audited farms, compound rewards, and cover gas, delivering double-digit returns with minimal user action.

1. DeFi Passive Income
Blueprint
AM Saghiri
2025/01/01

2. 01 Staking Foundations
02 Lending & Interest
03 Liquidity Provision
04 Yield Farming
05 Advanced Vehicles
06 Getting Started

3. Staking Foundations
PART 01

4. Classic Proof-of-
Stake Staking
The bedrock of on-chain passive income.
Secure the network, earn predictable rewards,
and maintain full custody of your assets.
Lock & Earn
Stake native tokens like ETH, SOL, or
ADA into validators.
Predictable APR
Earn a steady 3-6% APR with
rewards that auto-compound every
epoch.
Lowest Risk
Funds remain under your custody, making it the foundational, lowest-risk
strategy for on-chain yield.

5. Delegated & Liquid Staking
Your Tokens
ETH, SOL, etc.
Liquid Staking Tokens
Receive stETH while your stake earns
rewards.
Reuse in DeFi
Boost capital efficiency.
Delegate without transferring ownership and mint liquid tokens to reuse in DeFi while base rewards accrue, keeping your
capital fluid and efficient.

6. Restaking for Extra Yield
Take your liquid staking receipts (like stETH) and
redeploy them into other protocols that need economic
security.
This stacks validation rewards on top of lending or
farming returns, creating a powerful compounding effect.
Base Staking
5% APR
Protocol Yield
10% APR
Potential Combined Yield
> 15% APR
Note: This strategy exposes capital to compounded smart-contract
risk.

7. Lending & Interest
PART 02

8. Stablecoin Lending Pools
Deposit stablecoins into open lending protocols for low-volatility yield. Interest accrues every block.
You Deposit
USDC, DAI, USDT
Lending Protocol
e.g., Aave
Borrowers supply over-collateralized crypto.
You Earn
Floating interest, no lock-up
Key Benefit: 3–8% APY with low volatility and instant liquidity.

9. Interest-Bearing Crypto
Accounts
Smart-contract savings accounts that automatically
allocate your deposits across diversified lending markets
to optimize yield.
Claim Token: Users receive a token (e.g., cUSDC) that
represents their share of the pool and appreciates
over time.
Full Transparency: All strategies and yields are
verifiable on-chain, ensuring auditability and trust.
Instant Exits: Withdraw your funds at any time
without penalty, providing maximum flexibility.

10. Liquidity Provision
PART 03

11. Automated Market Maker (AMM) Pools
You Provide Liquidity
Supply pairs of tokens (e.g., ETH/USDC) to a
decentralized exchange.
Earn Trading Fees
Collect a share of fees from every trade, typically 10-
25% APR.
Risk: Impermanent Loss
If the price of the tokens in the pool diverges significantly, the value of your deposit can be lower than if you had just held the tokens.
This is the primary risk of AMMs.

12. Single-Sided & Rebalanced
Pools
A newer generation of pools designed to mitigate the
risks of traditional AMMs. You can deposit only one type
of token.
Dynamic Rebalancing
Protocol algorithms actively manage exposure across multiple
exchanges to minimize impermanent loss.
Steadier Yields
Designed to provide more consistent returns and shield
depositors from large price drift.

13. Yield Farming
PART 04

14. Liquidity Mining
Rewards
Stake your LP tokens or single assets into farms to earn bonus rewards, often paid out in
the project's native governance token.
Stake Assets
Deposit LP tokens into a farm.
Earn Governance Tokens
Receive bonus rewards like UNI, COMP,
etc.
High Initial APR
Early pools can offer >50% APR.
Considerations: Rewards are often inflationary and token price volatility can significantly impact net returns.

15. Aggregator Farming
Automation
Yield aggregators like Super or XBANKING automate the
entire farming process to maximize your returns.
Auto-Rebalancing: Continuously shifts funds to the
highest-paying, verified farms.
Auto-Compounding: Automatically reinvests earned
rewards to accelerate growth.
Gas Optimization: Factors in transaction costs to
ensure profitability.
Result: 20-40% APR without manual work,
diversified across protocols.

16. Advanced Vehicles
PART 05

17. DeFi Bonds & Structured Tokens
DeFi Bonds
Lock stablecoins for a fixed term to receive a token
representing principal-plus-interest.
• Tradable on secondary markets.
• Offer predictable, fixed yields.
• Ideal for investors seeking certainty.
Up to 48% APR
Structured Tokens
A single token that bundles multiple yield-generating
strategies into one asset.
• Auto-rebalances across strategies.
• Simplifies complex DeFi management.
• Offers diversified exposure.
Diversified & Automated

18. Crypto Index & DAO Revenue
Crypto Index Tokens
Hold a single token (e.g., DPI) that tracks a basket of DeFi
assets and auto-rebalances, capturing sector-wide growth
passively.
DAO Revenue Sharing
Join DAOs that share protocol fee income with governance
token stakers, adding a dividend-like cash flow on top of
potential price appreciation.

19. Getting Started
PART 06

20. Risk Checklist & First Steps
Risk Checklist
Start with audited platforms
only.
Use a hardware wallet for maximum
security.
Diversify across stable and volatile
strategies.
Track on-chain analytics and maintain tax
records.
First Steps
1
Start Small
2
Test Withdrawals
3
Scale Gradually
Begin with a small, comfortable amount. Test the deposit and
withdrawal process. As your confidence grows, gradually
increase your capital allocation.

21. THANKS!
2025/01/01