CRYPTO STAKING, DELEGATION, AND YIELD FARMING - 10% to @Tron-Fan-Club

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Greetings,

It is not a new thing that the world of cryptocurrency and blockchain is filled with a lot of earning opportunities ranging from leverage trading, spot trading, staking, yield farming, delegation, NTFS, and a lot more.

In as much as some of the above mentions provide a very obvious different form of earning opportunity from others, there are still some that mostly confuse people as they appear to be the same but are different.

These types of earning opportunities which include, staking, delegation, and yield farming are what we will focus on in this task.

STAKING

Staking in cryptocurrency is simply an act of locking up crypto assets especially a native token of a particular blockchain in other to gain more influence on the blockchain-based platform.

These staked coins, in turn, generates extra rewards in form of incentives to the owner and also add to the security of the platform with both influences, security and reward increasing with an increase in staked amount.

On the Steemit platform, the staking activity is a process known as power up. Users on the Steemit platform power up their liquid Steem in other to increase their influence such as voting power and they, in turn, earn incentives on their staked Steem.

• See below

_{Reward earned by staking}

DELEGATION

A delegation is a form of investment that is quite similar to staking but different in the sense that the asset owner will have to transfer the staked asset to a public validator node mostly due to their lack of desire to run as a node. They in turn earn incentives in proportion to their delegation amount.

The delegation also happens because most users of the platform do not have enough assets in other to act as independent nodes therefore they turn to the option of contributing to the platform as dependent nodes (delegators) thus jointly increasing the influence of a particular node by contributing staked assets to it and they, in turn, benefit from the much-gained influence of the node.

This act is common to users on the Steemit platform who usually delegate their SP to various communities thus increasing the influence of the community. This user periodically receives rewards known as delegation rewards from these communities in proportion to their delegation amount.

• See below

_{Delegation reward}

YIELD FARMING
Yield Farming is a type of cryptocurrency investment that appear similar to staking but is different. It is simply an act of giving up asset ownership over a specified period with the sole aim of gaining interest in the borrowed asset.

These assets are added to the liquidity pool thus adding liquidity to the platform. This liquidity makes it easier for other users to convert and swap their tokens on the exchange and users who borrow out their assets in other to add liquidity and earn interest in return are regarded as liquidity providers.

Unlike rewards earned by staking and delegation, the interest earned by adding liquidity is calculated in terms of APY which stands for "Annual Percentage Yield" and of cause the higher the asset added to the liquidity pool, the higher the amount that will be earned in return.

Different exchanges and blockchains offer varying APY on their liquidity pool with most higher APY coming from more volatile assets and lower APY seen on mostly stable coins.

Currently, we have seen some stable coins with considerably good percentages, one being the just launched USDD stable coin on the Tron blockchain which currently has an APY of 34%.

DIFFERENCE BETWEEN STAKING, DELEGATION, AND YIELD FARMING

STAKING	DELEGATION	YIELD FARMING
There's lesser profit and it comes to the node always without request.	There's also lesser profit but it is mostly manually sent to the delegator.	Profits from yield farming are much larger when compared to staking and delegation profits.
One who takes part in staking assets in other to increase the security of a platform is referred to as a node	One who delegates assets to a validator node is referred to as a dependent node or a delegator	One who engages in yield farming is referred to as a liquidity provider.
The more a user stakes assets, the more influence the user gets on a decentralized platform	The more a user delegates assets, the more influence the user adds to the recipient node.	The more assets a yield farmer adds to the liquidity pool, the easier it gets for swapping coins on the decentralized exchange platform.
There's mostly a minimum amount required for a user to stake in other to be regarded as a validator node.	There's usually no minimum amount required for a user to delegate in other to earn incentives from a validator node	There's no minimum amount required for a user to deposit in other to engage in farming.
Nodes enjoy governance rights by being able to approve or disapprove proposals on the platform	Delegators delegate to the respective nodes who they feel share similar interests thus making them indirectly enjoy governance rights	Farmers do not enjoy governance rights no matter the number of assets they deposit in the liquidity pool.
Delegated assets that come to validator nodes do not belong to them and can be withdrawn by Delegators at any desired time.	Delagators remain the sole owners of their delegated assets and can choose to withdraw them at any time.	Farmers who lock assets in others to earn more rewards do not have rights on the assets until the set time.

CONCLUSION

The world of cryptocurrency as I have initially stated is filled with a lot of earning opportunities and in as much as some of these earning opportunities are highly profitable, it also has its risks involved, and therefore it is always best for one to carry out proper research before engaging in any of them.