How to Earn Interest on AVAX with Compound: Step-by-Step Guide

## Unlock Passive Income: Earn Interest on AVAX via Compound

In the rapidly evolving world of decentralized finance (DeFi), earning passive income on your cryptocurrency holdings has become remarkably accessible. One standout opportunity is earning interest on Avalanche’s native token, AVAX, using Compound Finance—a leading decentralized lending protocol. This step-by-step guide will walk you through exactly how to put your AVAX to work, leveraging Compound’s secure infrastructure to generate consistent yields while maintaining full control of your assets.

## Why Earn AVAX Interest on Compound?

Compound is a battle-tested DeFi protocol that allows users to lend and borrow cryptocurrencies algorithmically. By supplying AVAX to Compound’s liquidity pool:

* Earn real-time, variable interest rates (typically 1-5% APY)
* Maintain custody of your assets—no lock-up periods
* Interest compounds every ~2 seconds (Avalanche block time)
* Participate in decentralized finance without intermediaries
* Utilize Avalanche’s low fees ( **Security Tip**: Bookmark Compound’s official site to avoid phishing scams.

## Step 3: Supply AVAX to Compound

1. On Compound’s dashboard, locate AVAX under “Supply Markets”
2. Click “Supply” next to AVAX
3. Enter amount (leave margin for gas fees)
4. Review transaction details:
– Current supply APY
– Gas fee estimate ( **Next Step**: Ready to amplify returns? Explore providing AVAX liquidity to decentralized exchanges like Trader Joe for additional yield opportunities.