# First Steps

So, you’re familiar with DeFi but curious about what options are available on Kai Finance? Let’s break it down:

* **Option 1: Passive Income with Single Asset Vaults**\
  If you prefer a “set it and forget it” approach, **Single Asset Vaults** are ideal. They provide a steady, passive return, with profits generated from interest paid by users borrowing funds to create leveraged positions in LP Vaults. During periods of high asset utilization i.e. high interest rate, it’s advantageous to provide liquidity to Single Asset Vaults, and enhance your passive income.
* **Option 2: Active Strategy with Leveraged LP Vaults**\
  For users seeking higher returns, Kai offers Leveraged LP Vaults, allowing you to open larger positions in Cetus LPs using borrowed funds from Single Asset Vault liquidity. This approach maximizes potential yield, while the Kai Leverage Protocol ensures safety and transparency. When asset utilization is low i.e. the borrowing cost is low, leveraging the cheaper liquidity from Single Asset Vaults can be a smart way to earn more.
* **Option 3: Best of Both Vaults**\
  You can combine both strategies: deposit in Single Asset Vaults to earn passive returns, and then leverage that liquidity to create LP positions. Why? Kai Finance receives additional liquidity incentives from the Sui Foundation, boosting returns when you use Single Asset Vaults. By using Kai, you’re eligible for these incentives on top of the usual LP farming fees, which you wouldn’t receive by depositing directly into Cetus.


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