Manual to take your first steps in DeFi - Step 6

Close the position and withdraw your dividends

When you decide to end your investment in a DeFi product, it is important to close your position and withdraw your assets, including the dividends generated. In this case, we recommend that you leave the position open for at least one month in order to observe the evolution of your investment. Once the time has passed and you decide to close the position, follow the necessary steps according to the protocol or product you have chosen. This may involve selling your tokens, recovering your loans or withdrawing your funds from a liquidity pool.

 Closing the position in Aave

Here are the steps to close your position on the Aave platform:

1. Check your dividends: Before closing your Aave position, check to see if your investment has generated rewards. Check the section "Your Supplies"section under the "Dashboard"tab on the Aave page. In the case of Aave, the rewards will be added to your initial deposit, this is called, Auto Compound Interest (Auto Compound)
2. Withdraw the dividends and close the position: As mentioned above, dividends in Aave are added directly to your initial deposit, so you can withdraw the proportional part of your rewards, or withdraw your entire deposit, thus closing the position. 
   • Within the same section of the dashboard, look for the option to "withdraw"next to your USDC deposit and accumulated dividends.
   • Click on that option and follow the instructions provided. You will be prompted to enter the amount you wish to withdraw.

3. Confirm the transaction:

• • Carefully review all the information related to the transaction, such as the amount of assets to be withdrawn or sold, the associated fees, the destination address, etc...
  • Make sure you have funds available in your wallet to cover the fees associated with closing the position.
  • Confirm the transaction and follow any additional steps required.

Congratulations, by following these 6 steps you have already made your first investment operation in DeFi!

This is the first step in the DEFI world so we recommend that you use the crypto you have already transferred to continue learning and testing new protocols, but if you would like to have Euros again you should follow a process similar to the one done in step 2 using any of the providers we indicate in this step.

From now on you can continue exploring more protocols. In our blog you will find useful information about a lot of topics related to DeFi.

If you need it, we have an active community where you can ask us questions and solve any doubts you may have.

Remember that investing in DeFi carries risk. Always research projects thoroughly, understand the associated risks and consider your own risk profile before investing. Also, keep up to date on new developments and changes in the DeFi world, as it is a constantly evolving environment.