Manual to take your first steps in DeFi - Step 4

Invest in your first DEFI product

Now you are ready to start investing in DeFi products. There are numerous options, such as lending, yield farming, staking and participation in liquidity pools.

For this manual, we will use the leading lending platform, Aavewhere, following the steps below, you will delegate the USDC you have just purchased into a liquidity pool so that other users can use them. Users who use them pay a commission and those who delegate them, as in your case, receive a return. So when you withdraw the investment you will have more crypto than you deposited.

The user who wants to use the funds from the pool, which is known as borrowing, in addition to paying the commission has to put as collateral another currency, this collateral will be used to pay his debts if necessary.

This is done among other reasons to make investments with leverage, I have a BTC and I use it as collateral to order USDC which, in turn, I use to buy more BTC in this way I have one comma something BTC, if the BTC goes up I will earn more but if it goes down I will also lose more.

In addition to doing so because it is reasonably easier, we have chosen Aave because it only requires one coin to enter.

Below are the steps to perform the operation:

• Access the Aave platform: Open your browser and visit the official Aave website at https://app.aave.com/
• Connect your wallet: If you have not been redirected, in the top right corner of the Aave page, you will find the option "Connect Wallet". Click on browser wallet to connect your MetaMask. Be sure to select the account that contains the funds you wish to invest.

• Confirm the blockchain network: Make sure you are connected to the corresponding Blockchain network, in this case Polygon. You can switch networks by clicking on the drop-down at the top of the interface, which will display the name of the network you are currently on. When you are in Polygon you will default to the MATIC currency and the balance of that currency that you have in Metamask. Also make sure you are connected to the correct Blockchain network within the Aave platform by clicking on the dropdown marked in the screenshot and selecting: Polygon Market v3.

• Choose the token to invest: Once logged in, you will see a list of tokens available on Aave to lend or borrow. Select the token you wish to invest. In this case if you have followed the previous steps choose USDC which is the token you have purchased in the previous point.

• Select the "Supply" option: After choosing the token, look for the "Supply" option in the Aave interface. Click on it to enter the amount of tokens you wish to lend, in this case all the USDC you converted in the previous step. Aave will show you information about the interest you can earn and the terms of the loan.

• Confirm the transaction: After setting up the loan details, review the information provided again and click the "Confirm" or "Supply" button to confirm the transaction. MetaMask will display a pop-up window where you can review and confirm the transaction details, including estimated gas rates.

• Wait for the transaction to complete: Once the transaction is confirmed, you will need to wait for it to complete on the network. This may take a few seconds or minutes, depending on network congestion and selected gas tariffs.

Once the transaction is completed, your funds will be invested in Aave lending and you will start earning interest according to the terms. You can monitor your investments on the Aave platform and withdraw your funds at any time if you decide to divest.