![]() Blockchains are decentralized and immutable ledgers (digital notepads with a list of transactions that can’t be tampered with) that are stored on computers around the world.Ī blockchain is essentially a public list that can’t be fooled because everyone using it has access to a record of every transaction. “Staking” is essentially the lifeblood of any blockchain (if you don’t know what the blockchain is, things may get a bit complicated from here on out). So, knowing the results of yield farming is great, but what does it entail? Generally speaking, there are three primary methods to participate in yield farming. ©Sergei Elagin/ What are the Possible Types of Yield Farming? KuCoin is known for its low trading fees and great features. There are a few standard methods that people use to yield farm, three of which we are going to cover in some more detail below. Still, it’s easy to see why a savvy investor may consider yield farming to tap into high APYs offered on various protocols. In DeFi, APYs in the triple digits are common, although in many cases, these high returns aren’t sustainable and carry additional risk. 5-1% on money held within a savings account. To provide a comparison, a bank often offers an APY of. Most often, yield farming is measured through its APY (Annual Percentage Yield), which represents the current estimates of return if the contract was to remain exactly as it is at the moment. Yield farming is the process of earning rewards through the utilization of staking, lending, or liquidity contracts commonly found throughout DeFi (Decentralized Finance). Let’s learn: What is Yield Farming in Crypto, and How Do You Do It? What is Yield Farming? If you are considering putting some tokens into a yield farm but want to learn a bit more about them first, this article is for you. To understand yield farming, a basic understanding of crypto is recommended but not strictly necessary. One of the most common ways that people make money through crypto is through a process known as yield farming. There is a lot of confusion, misinformation, and fear around this new development, but as anyone knows, new frontiers are often the most profitable. ![]()
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