Crypto is huge! It’s impossible to sail the crypto seas without constantly navigating through the latest trends and buzzwords. One of the latest trends that’s getting all the hype is ‘Yield Farming’, a rewarding scheme that has taken the DeFi to a whole new level.
Undeniably, it’s one of the key reasons why people are drawn to the DeFi world.
As most concepts are related to blockchain and cryptocurrency, Yield Farming can be intimidating for beginners, but fear not! NewB.Farm is here to make the crypto world easier for the newbies like you.
In this article, we’re going to cover everything you need to know about Yield Farming, what it is, how it works, and why you might be interested to explore it further. Let’s dive in!
What is Yield Farming?
At its core, it’s a streamlined process following which the crypto holders can lock up their assets and get rewards in return. More precisely, Yield Farming is a process that lets you earn interest on investing in the crypto market.
Simply put, the process of yield farming involves DeFi lending via the Ethereum network using ERC-20 tokens. When a bank gives loans using fiat money and the amount lent out is paid back with interest.
How Does It Work?
Liquidity pools are the ‘smart contracts’ with funds that help to power a marketplace like NewB.Farm where users can lend, borrow, or exchange tokens.
Once you add your funds or crypto-assets (that could be stable coins linked to USD) to a pool, you will officially become a liquidity provider or investor.
It’s like locking your funds in a pool and getting interest in return. However, your returns will be based on the amount you invest, and the rules that the protocol is based on.
The Key Benefit of Yield Farming
The primemost benefit of yield farming is that you get sure-shot returns on your investments. If you arrive early enough to invest in a new project, the chances of generating higher token rewards are more. Sell your rewards at a profit and you could treat yourself or choose to invest again.
Currently, yield farming is best known for giving more lucrative interests than a traditional bank. However, financial things never come with risks not involved and Yield Farming is definitely not an exception! Interest rates can be volatile making it difficult to predict what rewards could investors get over the upcoming years.
At the same time, it could be quite beneficial for the projects to gain initial liquidity. It makes crypto loans easier for the borrowers as well as the lenders.
There are a number of DeFi projects involved in yield farming. NewB.Farm is one such project that allows users to earn sustainably.
About NewB.Farm
It’s a new generation yield farming platform designed for the newbies in the crypto world. The platform enables transactions on BSC (Binance Smart Chain), one of the fastest blockchains ensuring the lowest transaction fees. NewB.Farm works as an innovative concept. The users serve as farmers who will milk cash cows and earn eggs (rewards).
The platform offers a relatively interesting and engaging interface for crypto beginners to participate in DeFi with ease.
To start your journey in the DeFi world, NewB.Farm can be your perfect mate! Explore through these channels to learn more about NewB.Farm.
