WHAT IS YIELD FARMING? HOW PROFITABLLE FARMING

in #yield4 years ago

Yield farming is the practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency.In short, yield farming protocols incentivize liquidity providers (LP) to stake or lock up their crypto assets in a smart contract-based liquidity pool.....
Yield farming lets you lock up funds, providing rewards in the process. It involves lending out cryptos via DeFi protocols in order to earn fixed or variable interest. The rewards can be far greater than traditional investments, but higher rewards bring higher risks, especially in such a volatile market!
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Yield farmers are earning as much as 100% APR on popular stablecoins on a good day in the field. On a bad day, losses can be steep, but the potential for big profits has drawn hundreds of millions into DeFi in the past week, Yield farming involves lending cryptocurrency. In return, you get interest and sometimes fees, but they're less significant than the practice of supplementing interest with handouts of units of a new cryptocurrency,

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