In reality, of course, it is a lot harder than that. The crypto world is full of projects promising huge returns. Sometimes there is a serious product behind those promises. Sometimes it is mostly a good marketing story. And sometimes it is simply an outright scam. Telling the difference is not always easy.
And even when a project is legitimate, that does not mean you will automatically get rich. You still need to understand how it works, where the money comes from, what can go wrong, and what you need to do yourself.
DexFi presents itself as one of those serious projects. According to DexFi, its DexFi Treasury Bond lets you earn money with crypto while DexFi handles the complicated work behind the scenes.
So how does that work? The money behind the Bonds is deployed in DexVaults. You can think of a Vault as a digital exchange booth. Each Vault contains two cryptocurrencies that people can trade against each other.
Say John uses a Vault to swap one cryptocurrency for another. John pays a transaction fee. Part of that fee goes to the Vault. That is how the Vault generates revenue. Through your Bond, you ultimately receive a share of that revenue.
This all happens on-chain, which means you can check for yourself what is happening.
You could also set up and manage Vaults like this yourself. But doing so takes time and knowledge.
With a Treasury Bond, DexFi takes that work off your hands. You buy the Bond; DexFi manages the Vaults.
But what actually needs to happen for a Vault like this to make money? To understand why that matters, let’s first look at what it takes to manage a Vault yourself.
