How defi yield farming works

in defi •  3 years ago 

First things first, you need to understand something, yield farming rewards do not come from DEX fees. Your liquidity tokens do that just fine. Instead, yield farming gets rewards from the farm’s token, then distributing tokens and growing the farm, while doing this, they are selling the tokens using the staked liquidity, and using syrup pools to grow

Knowing this, you should probably stick to those syrup pools, invest in DAOs or unique projects that do not leave investors with less than they started with. I will now give some projects that actually add value.

Here they are:
https://smartstaketoken.com, they are a small, actively deflationary token on polygon. or maybe https://aave.com/, they are a large multi-chain lending DAO. These projects all do something with investment, SmartStake actually puts more in. The value is not “locked” in aave either, even though it is far larger and safer, it still does something with the invested value.

In conclusion, don’t farm yield, actually invest your money

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