Cryptocurrency investors try to look for various ways to expand their crypto assets. In this view, there are so many concepts and strategies that are propagated out there. One thing that seems not to have gotten the attention it deserves is yield farming. If you are a crypto trader and have chosen to invest in a number of digital assets and want to earn good profits, you may want to consider yield farming. However, before venturing into this type of cryptocurrency investment, it is paramount to understand what it is all about.
In this article, we have covered the basics of yield farming. Our hope is that at the end of this post, you will have adequate knowledge to help you make the right decision. Generally, always try to understand any investment strategy before making a decision. Let us get straight into it:
Introduction to Yield Farming
Yield farming is an investment model in decentralized finance that allows users to earn rewards for locking tokens in liquidity pools. This process is controlled by smart contracts which are responsible for the trust bit of the model. The locked up tokens will increase the liquidity in a pool and other users can lend, borrow and stake the cryptocurrencies that have been added. Ultimately, yield farming is considered to be beneficial to all parties. Rather than having cryptocurrencies sitting in your crypto wallet, you can invest through yield farming. ‘
Crypto users who are searching for assets that they can borrow for margin trading,