Is it possible to earn interest on my holdings in cDAi tokens and if so how does this work exactly?
Yes, it is possible to earn interest on your holdings in cDAI tokens.
This works by depositing your cDAI tokens into a Compound protocol smart contract. This smart contract will then lend out your cDAI tokens to other users who are borrowing them, and you will receive a portion of the interest that is paid by the borrowers. The interest rate for cDAI is determined by the supply and demand of the token, so it can fluctuate over time.
You can withdraw your cDAI tokens at any time, but you will not receive any interest until you do so. Additionally, you may be subject to certain fees when withdrawing or depositing your cDAI tokens.
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