Top 5 Crypto Platforms That Unlock the Power Passive Income In 2023 Earning interest on your idle cryptocurrency assets is an excellent method to put your money to work for you

Cryptocurrencies are enjoying increasing attention from retail and institutional investors alike. But while investing and trading seem to be lucrative ways to earn money, they are a 'win big, risk big' type of activity, which many people don't feel comfortable with.

With the onset of DeFi in 2019, we saw alternative forms of earning as opposed to trading or investing that would allow crypto users to increase their holdings. Protocols, platforms, DEXs and liquidity pools provided users with an income in a sense, similar to earning interest, but only required some effort to set up and little or no effort to maintain.

Earning interest on your idle cryptocurrency assets is an excellent method to put your money to work for you. In 2023, here are 5 of the best DeFi protocols and platforms to get passive income from cryptocurrency.

Binance

Binance is one of the top cryptocurrency trading platforms in the world, including something for both crypto-investors, HODLers, and traders.

It is widely considered as the world's premier cryptocurrency exchange, offering an online platform that bridges the gap between regular fiat money and cryptocurrency with innovative feature-rich services. When using a unique Binance referral code, new customers on the exchange can additionally receive up to $100 for free.

While the platform is well-known for offering its creative trading products, altcoin trading and new features, the team has just developed a means to generate interest on Binance with the introduction of 'Binance Savings'. The Binance Savings account allows you to expand your wealth by earning interest on your crypto, which is housed in the platform's cold storage wallet.

Essentially, you are lending your assets to the platform's margin traders, who pay you interest in exchange for borrowing your cash. The Binance Savings/Interest account allows a wide range of loan choices, including Bitcoin (BTC), Ethereum (ETH), Binance USD (BUSD), and earning interest on USDT.

Users can choose between a Fixed Deposit and a Flexible Deposit, which offer somewhat different crypto interest rates. A variable-rate flexible deposit allows you to withdraw your savings at any time. This form of interest account will be appealing to traders who want to earn interest on their cryptocurrency portfolio while they wait for a trade setup.

Davos Protocol

Davos is a new DeFi protocol that takes a different approach to generating a yield on users' crypto assets by combining elements of CeFi and DeFi. It is able to magnify rewards through a combination of collateralized lending, yield farming, and stable asset staking.

Being a cross-chain protocol, Davos is able to create and contribute to multiple liquidity and staking pools across various chains. The flexible model of Davos Protocol ultimately allows for it to provide more holistic and inclusive borrowing, lending, staking and yield generation services.

The simple borrowing and staking experience of Davos Protocol is geared towards mainstream adoption and users with little to no experience or knowledge of blockchain and crypto. Users can borrow a stable asset that is reward-bearing as it generates consistent and real yield through a yield-earning over-collateralized debt position backed by MATIC and DeFi liquid staking incentives.

There are various passive income opportunities within DeFi, however those revenue streams are volatile, and many have significant admission fees. Liquid staking is gradually becoming the most reliable source of income (in percentage terms).

Davos Protocol provides another layer of composability to earn additional passive income by leveraging MATIC/ETH-collateralized lending on top of staking rewards from its stable asset DAVOS using the well-established MakerDAO model.

Implemented as the primary lending/borrowing platform on Polygon Chain, Davos leverages the network's $1.72 billion TVL and with ambitions to expand to ETH mainnet in tandem with the completion of the ETH Shanghai Update.

Davos provides users with a stable and real yearly APR of up to 12% for yield farming in the liquidity pool by utilizing liquid staking and delivering an APR of roughly 6%.

Following its initial release, the protocol has undergone numerous adjustments and improvements in order to provide better stability and versatility to DAVOS holders including a recent merger and rebranding with another DeFi protocol - Sikka.

The team behind Davos has shared plans for increasing the DAVOS borrowing interest over time in order to reduce DAVOS borrowing demand, which will then enhance DAVOS farming incentives. Polygon was chosen for its rapid growth and adoption, which makes Davos Protocol ideally positioned for future acceptance and uses. The Polygon network in turn benefits from enhanced user participation in the process of protecting its chain via the Davos Protocol.

Weave

Weave is a blockchain-based yield farming platform that allows customers to personalize and maximize their yield farming experience.

Yield farmers can use their proprietary drag-and-drop crypto yield farming strategy builder to construct their own bespoke strategies for their favorite liquidity pool pairs (including cross-chain strategies as part of Phase 2) and set the yield to be harvested and compounded precisely how they want it. There are an endless number of ways to compound and automate yield farming using Weave to maximize results. This means that it not only saves them time, but it also means that the bespoke yield compounding gives them some of the greatest yields available anywhere.

Weave lets users automate their farming and increase the production provided by a wide range of DeFi protocols and exchanges, including pancakeswap, apeswap, uniswap, sushiswap, spookyswap, spiritswap, liquid drive, quickswap, and many more.

This makes it comparable to a yield farming aggregator while outperforming autoresponders like Beefy Finance and Autofarm.

While Weave caters to more experienced users, it also offers high-yield investment options to complete beginners via a decentralized copy-farming method that securely enables users access to high-yield farmers while also letting them to manage capital allocation within their private wallets.

Safuu

Safuu, or Sustainable Asset Fund for Universal Users, is "a DeFi project that pays users with a sustainable fixed compound interest model using its unique SAP protocol", its website claims.

The platform provides one of the largest fixed APYs (around 382,000% APY for the first 12 months) to its staking members, which is paid out every 15 minutes.

Unlike other staking platforms that require investors to actively stake their crypto, SAP provides automatic staking for the Safuu token through a simple buy-hold-earn method straight on your crypto wallet.

Safuu does more than just offer staking rewards; it also automatically reinvests the earnings, giving customers a higher return on their investments.

Hubble

Hubble is a new liquidity staking platform that provides its customers with additional revenue potential.

By donating liquidity, users will automatically earn a yield on their collateral, whether in "vanilla" assets or yield-bearing formats such as mSOL or pSOL. Vanilla assets are assigned to third-party loan platforms. Users can borrow USDH, the Hubble protocol's native stablecoin, after depositing collateral.

The USDH stablecoin can be used to earn yield across different DeFi protocols or placed into Hubble's Stability Pool. The latter option offers users nearly 10 per cent more than liquidated accounts and HBB incentives. Furthermore, users can stake HBB for further benefits and use it as a native governance asset as an additional revenue possibility.

What is the Best Option?

Cryptocurrency users may now leverage crypto lending platforms and DeFi protocols to earn passive income on their holdings. Long-term crypto holders who have held onto their digital assets can now enjoy additional gains without selling or liquidating their investments with the help of various solutions.

Cryptocurrencies provide numerous investment opportunities, the most obvious of which is holding them to sell them at a profit. However, your money could be more useful than waiting for this to happen.

We reviewed 5 options for generating passive income using cryptocurrency in 2023. However, before implementing any of these methods, conduct thorough Do Your Own Research (DYOR) on the market and the platforms with which you will be dealing.