[DeFi} Yield Farmer You Must Know About | YIELD FARMER DAO (YFDAO)
First to Know is to
remind or enlighten you about YIELD FARMING, which is said to be "One of the new concepts that has emerged in recent DeFi economy, which is found to be a new way to earn rewards with cryptocurrency holdings through permissionless liquidity protocols. It offers anyone opportunity to earn passive income with the decentralized ecosystem of “money legos” built on Ethereum."
The Decentralized Finance (DeFi) movement is at the forefront of innovation in the blockchain space, because of the uniqueness of DeFi applications. They are permissionless, meaning that any entity (or anything, like a smart contract) with an Internet connection and a supported wallet can interact with them without knowing anything about coding. They also typically don’t require trust in any custodians or middlemen. In other words, they are trustless.
YIELD FARMER DAO
YFDAO is an exciting, community that run farming protocol that is trustless and permissionless using Buybacks and Deflation. This is a new community driven farming protocol that allows its ecosystem to interact with the smart contract. They have unique DeFi App that facilitates this. One that enables participants the ability to select the latest and hottest token to farm. As a result, yield farming protocol like YIELD FARMER DAO will change how investors HODL in the future. Why keep your assets idle when you can put them to work?
Yield farming protocol (YFDAO), can be referred to as liquidity miner, is a path to generate rewards with cryptocurrency holdings. In clear terms, it means locking up cryptos and getting rewards for doing so. This can be paralleled with staking you are familiar with or Fixed deposit in traditional or commercial banking.
Liquidity Pool (LP)
It is simple smart contract that contains funds. For providing liquidity to the pool, LPs get rewarded according to contribution of providers in that pool. These rewards may come from fees generated by the underlying DeFi platform, or some other source. some percentage of liquidity pools pay rewards in multiple tokens. These reward tokens then may/may not be deposited to other liquidity pools to earn rewards there. You can already see how incredibly complex strategies can emerge quite quickly. But the basic idea is that a liquidity provider deposits funds into a liquidity pool and earns rewards in return. That is what Yield Farmer DAO represents with my explanations.
PLS NOTE THAT
Yield farming is done MOSTLY using ERC-20 tokens on Ethereum, and the rewards are usually also a type of ERC-20 compliant tokens. This, however, may change in the future. Why? For now, much of this activity is happening in the Ethereum ecosystem.
Yield farmers (community) will transfer their funds around quite a lot between different protocols in search of high yields. As a result, DeFi platforms (YFDAO) will also provide other economic incentives to attract more capital to their platform. Just like on centralized exchanges, liquidity tends to attract more liquidity.
Name: Komolafe Samuel A.
Bounty0x Username: moneyafric
Please Note:
“A sponsored article written for a bounty reward.”