Simple Accordions, What Is Yield Farming? What You Need To Know?

If you are looking for another way to put your cryptocurrencies to use and generate a side income from crypto, Yield Farming is for you.

Yield Farming is a service provided by Decentralized Finance (DeFi) platforms, where users get to earn interest by lending their tokens (cryptocurrencies). The returns are generally in the form of cryptocurrencies. So, basically, yield farming allows you to make more crypto from your crypto.

Who can participate in Yield Farming?

Anyone who has some cryptocurrencies that they want to use to earn more cryptocurrencies can join Yield Farming platforms to put their tokens to use.

Some yield farming platforms can have minimum limits on how much you can invest and the types of cryptocurrency, so you may need to check that before signing up with a platform.

What should you know about Yield Farming?

Yield Farming is an easy way to earn cryptocurrencies.

However, you may need to have some technical understanding of how cryptocurrencies and blockchain work in order to make the most out of your investment.

There are tricks people use to maximize rewards by investing their tokens across various DeFi platforms.

Yield farmers (investors) essentially provide liquidity by staking their tokens to support the trading of different token pairs, in exchange for which they earn rewards in cryptocurrencies. The rewards come from the fees paid by traders.

Curve Finance, Aave, and Uniswap are some of the most popular yield farming protocols.

Yield farming is not free of risk and due diligence is recommended just like every other type of crypto investment.

Yield Farming services can have different types or can be provided under different names, such as Liquidity Provider, Crypto Lending, Crypto Borrowing, Staking, and others.

How to increase profits/returns in Yield Farming?

There are a number of ways & tactics using which you can increase your Yield farming output. For example, you can try farming across different yield farming platforms to optimize your returns or switch your cryptos from one platform to another depending on the returns being provided.

You can start by comparing the yield offered by different platforms. The more crypto you invest, the higher yield you’d likely make. So, that’s another way to increase your yield profits.

How to do yield farming?

To start with Yield Farming, you need to first find the right yield farming protocol, which is essentially a platform that offers yield farming services, i.e. incentivizes investors (liquidity providers) for staking their crypto in a smart contract.

Liquidity pools are most often used by decentralized exchanges (DEX) that are looking to increase liquidity for their traders. Pure Oxygen is an initiative working in the blockchain space with the aim to reduce air pollution and provide pure oxygen to everywhere in the world.

The project is still under development but it will soon allow people to invest their cryptocurrencies in the contract and earn cryptocurrencies as rewards.

There are also plans to add a lending & borrowing feature where crypto holders can directly lend their tokens to interested borrowers to earn interest. Find out more at www.pureoxygencoin.com.