Welcome to this new 5-inch cryptocurrency opus. Today Vellejen will explain to us what crop farming is. We will learn about the different platforms and all the possibilities this mechanism offers us. Fashion effect or real opportunity, new episode of 5-inch cryptocurrency is now!
Harvesting is the DeFi process
Decentralized finance, called DeFi, is a blockchain-based form of finance that does not depend on central financial intermediaries such as brokers, exchanges or banks. There are different processes within DeFi. Among them we find staking or profitable farming.
This process refers to blocking funds to participate in the blockchain. This allows cryptocurrency holders to passively earn rewards by simply refraining from moving their digital assets over a period of time. Betting is an alternative to mining, which consists of solving “mathematical equations to validate transactions.” The rate estimates the number of cryptocurrencies blocked on the network. Therefore, the higher the bet, the greater the corresponding winnings.
What does crop farming consist of?
Yield Farming is an approach that uses several strategies to optimize the profits generated by cryptocurrencies. It is the process by which users provide liquidity to the DeFi protocols and are rewarded in the form of token refunds. The Yield Faming phenomenon is attributed to the growing interest in DeFi and the massive influx of liquidity into money markets such as Complicated or Pancakes… The initial idea behind the protocol is very simple: connect lenders and borrowers. The platforms use a liquidity pool system that allows lenders to provide assets to the market and users to borrow from that market.
Adding liquidity to the protocol allows you to generate interest in another token, which itself can generate interest. The goal is to create the best possible mesh in order to get the maximum yield and therefore the maximum profit.
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Passionate about technical analysis and technology, I have followed cryptocurrencies diligently since 2017.
Apart from trading and investing, I am trying to democratize the ecosystem in my own way, which will undoubtedly change our tomorrow’s habits!
The comments and opinions expressed in this article are those of the author only and should not be construed as investment advice. Do your own research before making any investment decisions.