DeFi & NFT

Story: Traditional Concepts of Yield in DeFi with Cryptocurrency

By Dan Saada

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Yield farming is also known as liquidity mining.  It is a way to generate rewards with cryptocurrency holdings in liquidity pools.

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When you invest their value in banks get minimal rewards. Those who are investing in Defi protocols are able to make 6% or even more when they lock in their funds in liquidity…

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Those who have been investing in Bitcoin have been diversifying to Altcoins impressed by the concept of Yield Farming.

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Comparing to traditional concepts Yield on a Bond or a Dividend can be called an equivalent in Yield Farming.

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The percentage yield displayed will be for an annual APY.  And it will be high.  However, if you invest for just a short period of time you might not see an attractive…

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A regular bank takes deposit from customer and pays 1% interest.  Then they loan the same amount to another customer charging 5% in interest.

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Those who are investing should pick the coins that they understand and are sure of the long-term value.

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There are lot of DeFi tokens you can study to invest in for yield farming.  They are Uniswap, ChainLink, Wrapped Bitcoin, Dai, Aave, PancakeSwap, Maker, Avalanche (AVAX),…

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There are literally endless choices. There are some pools where traders bet 10X and it is not for beginners suitable for sophisticated traders.

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