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Academy Beginners Tutorial Article
Bitcoin DeFi OKX

OKX Earn: Use your crypto assets to earn passive income on OKX

2020.09.11 OKX

An overview of earning cryptocurrencies using OKX Earn

OKX provides various ways for users to start earning cryptocurrencies via our free Bitcoin offer, using services like OKX Pool or within MetaX’s decentralized finance offerings. We also offer a range of off-chain opportunities to generate passive income. OKX Earn serves as a one-stop-shop for all the centralized earning options available on the OKX platform.

OKX Earn currently offers eight products for users to earn passive income with their cryptocurrency holdings:

This guide will walk you through each of these products and demonstrate how you can start using them to earn rewards. We’ve included instructions for both mobile and desktop users. If a product’s functionality is similar on both the website and application, the desktop instructions also apply to mobile users. 

To access each Earn product, you’ll first need to enter the Earn section. 

Where to find Earn products on OKX desktop and mobile devices

Desktop

From the OKX homepage on desktop devices, navigate to Finance in the top menu and click on Earn to access OKX Earn.

Mobile

On a mobile device, log in to the OKX application and tap Earn from the options on the home screen.

Next, select the Earn product you want to use from those listed. On the website, you’ll find the products listed toward the top of the Earn section and in the dropdown menus below “All Products.” Alternatively, you can browse the offers available for each supported crypto asset. The percentages refer to the largest APY available among the Earn products for a particular asset.

On a mobile device, you’ll find the various Earn products listed on the Earn homepage. You can also browse the different products supported for the crypto assets you hold. Scroll down to see available offers for other cryptos. 

Tap the product or asset you want to explore to learn more and start using it. 

Dual Investment

Dual Investment is an OKX Earn product that enables users to generate an attractive return on assets held. Currently, it supports investments in BTC, ETH and USDT. The minimum investment amounts are 0.01 BTC, 0.1 ETH and 100 USDT.

Dual Investment is a non-principal protected investment product, meaning the capital you initially invest is at risk. However, the product provides a predictable yield on an investment regardless of the direction of future price movement.  

There are a few important terms to consider when investing with Dual Investment. On the product homepage, you’ll see the estimated APY, the term length, expiry time and the strike price. 

When investing BTC with Dual Investment, if BTC price exceeds the strike price at expiry, you receive your principal investment paid in USDT at the strike price chosen plus interest paid according to the APY at the time you subscribed to the product. If the price of your chosen asset is below the settlement price at expiry, you receive your principal investment paid in the same currency you invested plus interest. 

Let’s look at an example to illustrate how Dual Investment works. 

We invest 2 BTC when BTC price is $40,000 with a strike price of $41,000 and a term rate of 5%. At the end of the term, BTC price is greater than $41,000. Our investment contract executes automatically and we receive 82,000 USDT plus 4,100 USDT interest. 

Now, let’s presume the price goes the other way during our investment term. Again, we invest 2 BTC when BTC price is $40,000 with a $41,000 strike price. At the end of the term, BTC price is $39,000. We receive our initial 2 BTC principal back with an additional 0.1 BTC as interest.  

Our position at settlement is larger than before we invested in both cases. The only additional risk Dual Investment carries over regular spot investing is missing out on potential profits. In the first example, BTC could have surged to $50,000, but we do not receive 100,000 USDT. We only receive our principal investment multiplied by the strike price — in our example, 2 x 41,000 = 82,000 USDT. 

OKX Dual Investment also supports early redemption. You do not have to wait until the term’s expiry to redeem your assets. 

How to use Dual Investment 

OKX’s Dual Investment product is very easy to use. Here’s how to get started.

First, select Dual Investment from the OKX Earn homepage. 

Next, select a product from the top menu. You’ll be investing with BTC or ETH with the “BTC” and “ETH” products, and USDT with the “BTC-U” and “ETH-U” products. 

Check the list of available investment terms and select which one you want to invest in using the Subscribe button. 

On the following pop-up, enter your subscription amount in the relevant field. Then, check the subscription’s terms and click Continue.

On the next pop-up, you’ll see all the details from your subscription once again. Carefully check the details, read the “Dual Investment user agreement” and check the box to confirm you agree to it. Then, click Continue.

The following screen will confirm your subscription. Your position will automatically execute on the expiry date. 

You can check your Dual Investment position at any time by clicking My earnings on the Earn homepage. 

Custom subscription

OKX also allows you to set custom term parameters for the Dual Investment product. 

To get started, click Customization from the top menu. Then, select the product type. 

Next, select an expiration date and choose a strike price or enter a custom one. Then, click Continue

The remaining steps to subscribe to a custom Dual Investment will be the same as those detailed above. 

Early redemption

OKX Dual Investment allows users to redeem their investment before expiry, too. 

Click My earnings from the Earn homepage and click the option below “Status.” 

On the following pop-up, click Redeem

Finally, check the box to confirm the amount to be credited and click Continue to redeem your investment. 

Savings

The Savings product enables OKX users to earn interest by depositing their digital assets on the platform. The deposited assets are lent as margin loans to traders, and OKX then collects and distributes interest to users. Interest is accrued on an hourly basis, and terms are flexible — meaning you can withdraw your assets within an hour of requesting. 

In the Savings section, select the crypto asset with which you would like to earn by clicking Subscribe. You’ll see the estimated annual percentage yield listed for each crypto. 

On the next screen, you have the option to set your investment’s minimum APY. If the current APY — determined by the current market demand for margined positions for that crypto — is below your minimum, your assets will not be loaned to traders, and you won’t generate passive income. If the current APY is higher than your minimum, you will earn the current APY percentage. 

Enter the minimum APY and the amount of the asset you want to invest in the relevant fields. Then, click Subscribe

On the next screen, check the details, read the “Savings user agreement” and check the box to indicate that you agree to it. Then, click Continue.

You can check your active positions in the “My earnings” section. To withdraw your assets from the Savings product, click the option below “Status” and then Redeem

Enter the amount you wish to withdraw and click Redeem again on the following pop-up. 

Staking

Some cryptocurrencies use what’s known as a proof-of-stake consensus mechanism. Validators will stake a network’s native assets, receiving rewards for processing transactions honestly and being punished if they attempt to validate transactions that do not comply with network rules. 

The process of staking independently is quite involved and not recommended for novice users. OKX’s staking products take care of the technical details on your behalf, greatly simplifying the process. In a few clicks, you can contribute your assets to help support your favorite proof-of-stake networks. 

In the Staking section, scroll down to see which assets OKX supports. You’ll also see term lengths — i.e., the period during which your assets will be staked — and an estimated APY. After a term’s expiry, your staked position will automatically become a flexible one, enabling you to withdraw it at your leisure or continue generating rewards. 

Scroll down to find the asset you want to stake with OKX and click Subscribe to get started. 

On the next screen, you’ll see the staking options. Enter the amount of the asset you want to stake, check the details and click Subscribe to start staking. 

Next, read the “Staking user agreement” and check the box to indicate that you agree to the terms. Then, click Continue.

You can check on your staked positions in the “My earnings” section. From here, you can also withdraw staked assets by clicking on a position and clicking Redeem on the following pop-ups. 

DeFi

The DeFi boom and its need for liquidity have presented market participants with new avenues for generating passive income. Users can now commit their digital assets to various protocols and earn interest or bonus tokens.

OKX has taken the initiative to add numerous DeFi products to the Earn section to facilitate users and lower barriers to entry for those seeking passive income opportunities in this growing niche.

OKX supports various DeFi protocols from different sectors, including lending DApps, decentralized exchanges and staking. Popular examples include SushiSwap, Compound and Aave

Earn crypto with Compound

Compound, one of the leading decentralized lending protocols, has gained widespread popularity in the DeFi community following the release of its governance token, COMP. The release of COMP led to a massive increase in liquidity mining in the DeFi space, with yield farmers earning COMP by supplying their crypto to the Compound protocol.

To support the Compound ecosystem, OKX users can deposit the following tokens to earn passive crypto income:

We will subscribe to earn USDT and COMP with Compound in this tutorial.

Step 1: Subscribe to earn USDT with Compound

In the DeFi section, click Compound and then select the relevant token with which you want to provide liquidity by clicking Subscribe next to it.  

Step 2: Supply your USDT to the Compound protocol

On the following pop-up, enter the amount of USDT you want to supply to Compound. Then, check the rewards schedule before clicking Subscribe.

The next pop-up will give you a breakdown of the subscription. Check all the details, read the “DeFi services users agreement” and check the box. 

Click Continue to supply USDT to Compound. 

Step 3: Check positions and redeem assets

You can check on the DeFi positions you have open with OKX in the “My Earnings” section. 

To redeem assets supplied to a DeFi protocol, click the relevant position in the list and, on the next pop-up, click Redeem.

Earn crypto with SushiSwap

SushiSwap is an automated market maker built on Ethereum. To encourage user participation on SushiSwap, we have launched a flexible deposit product for the project on OKX Earn. This product will collect user funds for SushiSwap’s smart contract, splitting the gas fee between all participants.

Before getting started, it’s important to understand the risks of impermanent loss. If the concept is unfamiliar to you, check this guide to learn more

Users can start earning SUSHI tokens by staking any of the following digital asset trading pairs:

In this tutorial, we will subscribe via USDT/ETH to earn SUSHI tokens. We’ll need to provide an equivalent value of both USDT and ETH to the SushiSwap protocol in order to earn SUSHI. However, no interest will be earned on the digital currencies actually supplied.

Step 1: Subscribe to earn crypto with SushiSwap

From the DeFi section, click SushiSwap and select the trading pair for which you want to provide liquidity by clicking Subscribe next to it.  

Step 2: Supply assets to SushiSwap

On the following pop-up, enter the amount of either asset to be supplied to SushiSwap. The other side of the trading pair will complete automatically.

Check the subscription terms and click Subscribe.

DOT and KSM slot auctions

The Polkadot network comprises a main relay chain connected to numerous parachains. Because the number of possible parachains is limited, voting determines which applicant receives what’s known as a parachain slot. Anyone can participate in the voting process using DOT or KSM and often receive rewards in the project’s native tokens for doing so. The same process applies to Polkadot’s “canary network,” Kusama. 

When voting for a particular project, it’s essential to understand that DOT or KSM used will be locked, as indicated by the stated lockup period.

OKX simplifies the process of participating in parachain auctions. Here’s how to get started: 

First, select Polkadot or Kusama from the top of the “DOT & KSM slot auction” section. Then, choose the parachain auction in which you want to participate. Click Vote next to the relevant offering. 

Next, read the information provided about DOT and KSM parachain auctions and click I understand

On the following pop-up, enter the amount of DOT or KSM with which you will use to cast votes and click Confirm

You can check your previous voting via the “My Earnings” section. 

ETH 2.0 staking

Ethereum is transitioning from a proof-of-work network to proof-of-stake as part of an ongoing network upgrade. Although not fully rolled out, staking on Ethereum is already available, and you can participate via OKX.  

While similar to the process described in the staking section above, a few differences warrant ETH 2.0 staking having its own area within OKX Earn. Assets staked on Ethereum’s Beacon Chain ahead of the full rollout cannot be unstaked and will only be unlocked when the upgrade is live. 

As mentioned earlier, operating a validating node is not recommended for novice crypto users. To do so on Ethereum requires a large capital lockup — 32 ETH — and consistent node uptime. 

Staking ETH with OKX is a user-friendly alternative with a flexible exit policy and a much lower barrier to entry. Users do not need to operate their own hardware and can participate in staking with as little as 0.1 ETH. Additionally, rewards are distributed daily. 

OKX uses a representation of staked ETH called BETH to facilitate this flexibility. Each BETH token is a claim on staked ETH and is redeemable at a one-to-one conversion rate after the upgrade’s mainnet launch. Every ETH staked will receive 1 BETH, and rewards are paid in BETH. 

To stake ETH with OKX and earn rewards by supporting Ethereum’s transition to a new consensus mechanism, click One-click convert from the “ETH 2.0 staking” section.    

Next, enter the amount of ETH you want to stake in the relevant field, check the box to indicate you understand the ETH/BETH conversion rules and click Continue.

Jumpstart

OKX users can also generate passive income by providing liquidity to crypto projects launched via our incubator, OKX Jumpstart. 

We provide more information about OKX Jumpstart and a detailed walkthrough of the process in a dedicated tutorial

P2P lending

OKX’s P2P lending product also provides an opportunity for users to generate passive income with their crypto holdings. Users can lend their assets to borrowers on the platform and earn interest on the funds lent out. 

We cover the process of borrowing crypto using P2P loans in a dedicated tutorial.  

Lending assets works a little differently on desktop and mobile. Hence, we’ve included a tutorial on both.

Before you start lending, we highly recommend you read the “Risk control” section. You’ll find it on the “P2P loan” pop-up on desktop and toward the bottom of the “Invest” screen on mobile. There are three important pieces of information in this section, namely pledged assets, loan-to-value and late interest rates.

“Pledged assets” refers to the collateral held by a lender in return for lending funds. Collateral value refers to the amount of assets contributed by the borrower to secure the loan. When the collateral value falls below the alert level, the borrower will receive a reminder to increase the collateral amount. If the collateral value drops below the liquidation level, and the borrower fails to restore the collateral amount, the loan position will be closed to repay the principal, interest and overdue penalty interest to the investor. As such, the investors will be able to collect their principal even in the event of a liquidation.

“Loan-to-value” is the ratio of a loan to the value of an asset purchased — a high LTV ratio means the loan is riskier to take. The initial level refers to the percentage of the loan amount that must be covered by your own money. The margin call level here refers to the minimum amount of USDT that must be maintained in your margin account. If the LTV reaches the liquidation level, the loan position will be closed.

“Late interest rate” refers to the penalty rate for late interest payments.

P2P lending via desktop

From the Earn section, use the dropdown menu below “All products” and click P2P loan.

You’ll then see a list of assets requiring loan financing along with their estimated APY and term conditions. Choose the asset you want to lend out by clicking Select

The options will expand, presenting you with various loans. Click Subscribe next to your chosen offer. 

You’ll see more information about the selected loan on the following pop-up, including the borrowing period, its APY, the minimum and maximum investment amounts, the redemption date, and the amount of capital already subscribed. 

Click Invest to continue. 

Enter the “Subscription amount” in the relevant field on the following pop-up and click Continue

P2P lending via mobile

You’ll find the option to lend via the OKX’s P2P loans within the Loan section on mobile devices. 

From the app’s home screen, tap Loan.

Tap Lend at the top of the Loan section. Next, select the loan requiring capital from the list of offers. 

On the following screen, consult the terms of the loan selected. You’ll see various important details like the schedule, repayment structure, loan-to-value ratio and interest rate. 

Read the “OKX loan rules” and check the box to confirm you have done so. Then, tap Next to continue. 

Enter the amount you want to invest and tap Confirm.


Ready to generate passive income using OKX Earn? Head to the Earn section to get started.

Subscribe to the OKX Insights podcast, Send It!

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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