<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/04222342/No-Vault-No-problem-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/04222342/No-Vault-No-problem-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/04222342/No-Vault-No-problem-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/04222342/No-Vault-No-problem.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/06/04222342/No-Vault-No-problem-1024x576.webp" alt="no vault no problem" class="wp-image-5466"/></figure>



You don’t need to open a Vault to earn yield with Liquid Loans.



Don’t get us wrong, collateralizing PLS and taking out a decentralized interest-free loan is a great way to unlock the value of your coins without selling them.



But it’s not the only way to take part in amazing (and profitable) DeFi experiences. 



So, if you haven’t got a Vault, this one’s for you.



Here are five ways to extract value from the <a href="https://www.thecoinzone.com/liquidloans/start-here" target="_blank" rel="noreferrer noopener">Liquid Loans protocol</a> right now, without opening a Vault.



<h2 class="wp-block-heading tablecontent">1. Earn Through the Staking Pool</h2>



The <a href="https://www.thecoinzone.com/pulsechain/the-loan-staking-pool" target="_blank" rel="noreferrer noopener">Staking Pool</a> allows users to stake <a href="https://www.thecoinzone.com/pulsechain/loan-token-ultimate-guide" target="_blank" rel="noreferrer noopener">LOAN token</a>, which can be a great way to earn hefty rewards in the form of both PLS and USDL.



This yield comes from the redemption fees (in PLS) and issuance fees (in USDL) that are collected by the <a href="https://www.thecoinzone.com/liquidloans/dont-dump-on-yourself-cash-out-with-liquid-loans/" data-wpil-monitor-id="992">Liquid Loans</a> protocol.



The <a href="https://www.thecoinzone.com/blockchain/loan-staking-pool-apr" target="_blank" rel="noreferrer noopener">Staking Pool APR</a> has been well above 60% for the first three months of LL’s launch, and users are finding creative ways to use their yield.



With their PLS rewards, some users like to cycle their coins into a Vault, or use it to buy more LOAN to recycle into the Staking Pool. 



With their USDL, some users are choosing to place their stablecoins in the Stability Pool to earn more LOAN–which can then be staked to earn even more.



There is simply no shortage of opportunities to compound yield within the protocol.



<h2 class="wp-block-heading tablecontent">2. Contribute to the Stability Pool</h2>



<figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/04222556/LL-Alternate-Use-Cases-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/04222556/LL-Alternate-Use-Cases-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/04222556/LL-Alternate-Use-Cases-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/04222556/LL-Alternate-Use-Cases.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/06/04222556/LL-Alternate-Use-Cases-1024x576.webp" alt="LL Alternate Use Cases" class="wp-image-5467"/></figure>



Another way to earn with Liquid Loans is by <a href="https://www.thecoinzone.com/pulsechain/how-to-buy-usdl" target="_blank" rel="noreferrer noopener">buying USDL</a> and staking it in the Stability Pool.



The <a href="https://www.thecoinzone.com/liquidloans/stability-pool" target="_blank" rel="noreferrer noopener">Stability Pool</a> can be thought of as a single-sided liquidity pool. 



When you stake USDL, you provide liquidity to automatically buy liquidated PLS at a discount. 



Through this liquidation mechanism, you can earn great yield in the form of PLS.



Additionally, you earn LOAN on a time-based emission schedule. This halves every year, decreasing the rate of inflation.



Stability Pool yields are extremely high for a stablecoin. This is currently estimated as being as high as over 90% APR–and no, it’s not too good to be true. 



For more information, read this article on how to <a href="https://www.thecoinzone.com/liquidloans/how-to-deposit-usdl-into-the-stability-pool" target="_blank" rel="noreferrer noopener">deposit USDL</a> in the Stability Pool.



<h2 class="wp-block-heading tablecontent">3. Make Money Liquidity Providing</h2>



Regardless of whether or not you have a Vault, you can earn easily by providing liquidity.



To do so, you can use the yield you’ve already <a href="https://www.thecoinzone.com/defi/defi-yield-protocol/" data-wpil-monitor-id="250">earned</a> from the Staking Pool or the Stability Pool.



Alternatively, you can just buy USDL, LOAN, and PLS and use it to provide liquidity.



By becoming a liquidity provider, you are helping others make decentralized token swaps while earning a sizable yield in the process. 



<a href="https://pulsex.com/" target="_blank" rel="noreferrer noopener">PulseX</a> is the most liquid decentralized exchange on PulseChain. Here, you can use your tokens to support liquidity pools such as USDL/PLS, LOAN/PLS, LOAN/USDL and more.



Check out our guide to <a href="https://www.thecoinzone.com/defi/crypto-liquidity-provider" target="_blank" rel="noreferrer noopener">becoming a liquidity provider</a> to learn more.



<h2 class="wp-block-heading tablecontent">4. Cash in on Liquidations</h2>



Liquidations are an easy way to make 200 USDL–if you’re fast enough.



Any vault which falls below a <a href="https://www.thecoinzone.com/liquidloans/110-percent-collateral-ratio" target="_blank" rel="noreferrer noopener">110% collateral ratio</a>, is put up to a public call for liquidation.



This means that any user, regardless of whether they use other functions of the protocol or not, can execute the liquidation. 



As a reward, they receive the <a href="https://www.thecoinzone.com/liquidloans/what-is-the-liquidation-reserve" target="_blank" rel="noreferrer noopener">Liquidation Reserve</a> of 200 USDL as well as 0.5% of the liquidated PLS. 



Liquidations also support the health of USDL, making sure the stablecoin always remains overcollateralized. 



But this can be a competitive way to earn, as only the first user to liquidate a Vault will receive the reward.



<h2 class="wp-block-heading tablecontent">5. Redeem Your Way to the Top</h2>



The final way to use <a href="https://www.thecoinzone.com/liquidloans/fully-redeemed-against/" data-wpil-monitor-id="1448">Liquid Loans</a> without opening a Vault is to perform redemptions.



The act of redeeming simply involves turning each 1 <a href="https://www.thecoinzone.com/liquidloans/usdl-is-actually-a-store-of-value-but-only-if-you-mint-it-yourself/" data-wpil-monitor-id="1280">USDL that you own back into the equivalent value</a> of PLS.



This can be done by anyone at any time, through the <a href="https://go.liquidloans.io/" target="_blank" rel="noreferrer noopener">Liquid Loans dApp</a>.



Since the system always treats 1 USDL as being equivalent to $1 US dollar worth of PLS, you can earn a profit by redeeming USDL whenever its price falls below 99.5 cents on the open market.



When using this method, make sure to take into account that there is a variable redemption fee between 0.5-5%. Ideally, you should add this to your calculations when deciding when to redeem.



If you’re looking for more on redemptions, you’re in luck. We’ve written a guide on <a href="https://www.thecoinzone.com/liquidloans/how-to-redeem-usdl-for-pls" target="_blank" rel="noreferrer noopener">how to redeem USDL for PLS</a>.



<h2 class="wp-block-heading">The Bottom Line</h2>



If you don’t want to open a Vault, there are still many ways to use <a href="https://www.thecoinzone.com/liquidloans/the-collateral-surplus-pool/" data-wpil-monitor-id="1299">Liquid Loans</a> to your benefit.



<ol>
<li>You can <a href="https://www.thecoinzone.com/liquidloans/you-cant-borrow-more-than-you-deposit/" data-wpil-monitor-id="1455">deposit LOAN in the Staking Pool and earn the borrowing</a> and redemption fees.</li>



<li>You can deposit USDL in the Stability Pool and earn liquidation gains.</li>



<li>You can provide liquidity to facilitate decentralized trading and earn fees.</li>



<li>You can liquidate under collateralized vau <a href="https://www.thecoinzone.com/liquidloans/the-biggest-misconception-about-ll/" data-wpil-monitor-id="1639">liquidate undercollateralized Vaults</a> to earn a quick 200 USDL and a chunk of PLS.</li>



<li>And finally, you can redeem USDL for $1 of PLS if the price falls.</li>
</ol>



<a href="https://www.thecoinzone.com/liquidloans/dont-sell-your-pls/" data-wpil-monitor-id="1139">Liquid Loans</a> is about so much more than just lending; it’s about delivering a world of value to DeFi as a whole.



Despite how <a href="https://www.thecoinzone.com/liquidloans/havent-opened-a-vault-yet" target="_blank" rel="noreferrer noopener">easy and lucrative</a> it is to open a Vault, we’re not here to tell anyone what to do in DeFi. 



You can still earn tremendous value by accessing other parts of the <a href="https://www.thecoinzone.com/defi/protocol-owned-liquidity/" data-wpil-monitor-id="791">Liquid Loans protocol</a>, and you’re always free to forge whatever path best suits you.



Head to the <a href="https://go.liquidloans.io/" target="_blank" rel="noreferrer noopener">Liquid Loans dApp</a> today to start taking advantage.

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Did you know you don't need to open a vault to use <a href="https://www.thecoinzone.com/liquidloans/why-real-estate-investors-understand-ll/" data-wpil-monitor-id="843">Liquid Loans</a>? The protocol has several powerful passive income opportunities.