For over a year now, the DeFi sector has been exploding faster than any other trend in crypto, to the point where it has become a core component of the cryptocurrency ecosystem. It has birthed a variety of different services aimed at replicating what traditional banking offers, but in a way that is trustless, fair, and secure.
Take interest bearing accounts. DeFi has a yield protocol, where all that users need to do is lock up their tokens and receive rewards in return, often an order of magnitude more than would be received in a traditional account.
In these cases, the user doesn’t only benefit from the number of tokens that they hold, but also from a positive change in the tokens’ prices. Yield farming also became popular as it minimizes the risk involved. In trading, for example, the user could lose their money in a bad trade or due to a bad price forecast before entering a position. With yield farming, the worst that can happen is that the token might see a price drop.
Fortunately, however, the crypto market always seems to recover from bearish waves, and surge higher than ever before. This is by no means a rule, and some projects end up too weak to survive the bearish waves. However, those that survive will reward their patient investors without a fault.
One of the most recent and most popular projects that deal in yield farming is UltraSafe — a ‘frictionless yield protocol that allows users to