A complete visual step-by-step guide: from setting up a wallet to earning your first LP fees. Covers both passive lending and active concentrated liquidity.
This guide walks you through every step β from zero to earning your first DeFi yield. We cover two paths: Path A (Passive/Easy) for beginners and Path B (Active/Advanced) for higher returns.
Go to metamask.io β Download browser extension β Create a new wallet β Write down your seed phrase on paper (NEVER share it!)
Buy ETH or USDC on an exchange (Coinbase, Binance) β Withdraw to your MetaMask wallet address β Make sure you pick the correct network (e.g. Base, Ethereum, Arbitrum).
Pick based on your experience and how much time you want to spend
Deposit one token, earn interest. No management needed.
Provide two tokens in a price range. Higher yield, more work.
The easiest way to earn DeFi yield. Deposit USDC on Aave, earn interest from borrowers. Zero management.
Open app.aave.com β Click "Connect Wallet" (top right) β Select MetaMask β Approve the connection in MetaMask popup.
Select a network from the top bar (Ethereum, Arbitrum, Base, etc.) β Find USDC in the asset list β Check the "Supply APY" column β this is what you'll earn.
Click "Supply" next to USDC β Enter the amount β Click "Approve USDC" (first time only, lets Aave access your tokens) β Confirm in MetaMask β Then click "Supply USDC" β Confirm again in MetaMask.
Your dashboard now shows your deposit. The balance increases every second automatically. No action needed.
* Interest accrues every block (~2 seconds). You can withdraw anytime β no lock-up period.
Go back to Aave dashboard β Click "Withdraw" next to USDC β Enter amount (or click "MAX" for everything) β Confirm in MetaMask β USDC (including earned interest) returns to your wallet.
Higher returns, but requires two tokens and active price range management. Example: WETH-USDC on Base.
Open app.uniswap.org β Connect MetaMask β Switch to Base network (top-left chain selector).
Click "Pool" tab β "+ New Position" β Select WETH and USDC β Choose fee tier (0.05% for stables, 0.3% recommended for ETH/USDC).
This determines your risk and reward. You'll see a price chart with two handles.
Enter how much WETH and USDC (the UI auto-calculates the ratio based on your range) β Click "Approve WETH" + "Approve USDC" (first time) β Click "Add Liquidity" β Confirm in MetaMask.
Go to "Pool" tab β You'll see your position with "Uncollected fees" showing earned WETH + USDC β Click "Collect fees" to send them to your wallet (without closing the position).
* Fees shown are illustrative. Actual fees depend on daily trading volume and your share of the pool.
Check your position on the Uniswap Pool page:
To close: "Remove Liquidity" β Choose 100% β Confirm β You receive WETH + USDC (including all fees) back in your wallet.
| Path A: Aave Lending | Path B: Uniswap V3 LP | |
|---|---|---|
| Tokens needed | 1 (e.g. USDC only) | 2 (e.g. WETH + USDC) |
| Typical APY | 2-10% | 20-120% |
| Impermanent loss | None | Yes (can be significant) |
| Management | Set & forget | Check daily/weekly |
| Earnings paid in | Same token (USDC) | Both tokens (WETH + USDC) |
| How to collect | Auto in balance / Withdraw | "Collect Fees" button |
| Best for | Beginners, risk-averse | Experienced, active managers |
Buy tokens on trusted exchanges to fund your liquidity pool positions