The world of Decentralized Finance (DeFi) applications and the high yield crypto investing opportunities they offer have taken center stage within the crypto community in the last year. Crypto investors looking for a fresh source of passive income have turned in large numbers to yield farming, which involves depositing funds with a DeFi application (dapp) […]
In the last year or so the hot topic in the blockchain arena has been Decentralized Finance (DeFi), the online banking system based on smart contracts that allows you to rapidly and efficiently borrow lend, exchange trade or store digital assets. There are pros and cons to DeFi, when compared with more traditional, Centralized Finance […]
The way we think about how best to put our crypto to work has changed dramatically with the development of DeFi (Decentralized Finance) applications, which are creating new ways to manage and generate income from cryptocurrencies. They work by interacting directly with your crypto wallet enabling you to perform a variety of functions such as borrowing, lending, exchanging or trading digital assets.
What Is Yield Farming in Crypto?
Before we dive into exploring the advantages and disadvantages of yield farming, it may be beneficial to begin by defining what it is and how it works.
Yield farmers are basically crypto liquidity providers. Whether you are yield farming Ethereum, Bitcoin, Ripple or any number of altcoins, the principle remains the same. You put your capital at the disposal of a Decentralized Finance (DeFi) application.