With a new boom in cryptocurrencies and decentralized finance, investors and digital currency holders are seeing lots of opportunities to grow the value of their digital assets.
One of these is the idea of staking a cryptocurrency or using a decentralized yield farming approach to gain interest on digital currencies.
While these two processes tend to work a bit differently, both can restore the idea that savers can grow their money over time by getting good returns on deposited funds. As pointed out in this piece on Forbes, in the old days, regular dollar depositors got 6% on their money. These days it’s more like 0.06%. However, DeFi yield farming and staking are changing the game, bringing new ways to leverage the stored value that’s not stored in traditional fiat.
Just look at the ability of crypto staking models to return 6% to 10% annually, or 200% APY or more in a matter of a few months.
Specifically, a PancakeSwap available DeFi model is estimated to return 300% APR.
Or check out a list of available annual rewards for cryptocurrency staking, with items like Dai at 3.74%, Aave at 5.23%, and Sushi at 9.61%. For reference, the same platform rates PancakeSwap pledging at a staggering 73.97%.
Online Gaming and Cryptocurrency
However, there might be even more opportunities on the horizon, and it pays to think about all of your choices with the cryptocurrencies and tokens that you buy and hold.
One choice is to try