Yield Farming: Effortless Route of Earning Interest on Crypto
Login
Free Crypto Signals Join Our Telegram

Yield Farming: Effortless Route of Earning Interest on Crypto

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more


Much like depositing funds in a savings account provides commercial banks with capital for giving out loans; also, holding crypto in yield-bearing “accounts” enables Decentralized finance platforms with the necessary capital to operate, while in return they give the platform’s token to the investor as interest.

The Demand Level for Yield Farming Amplifies

Yield Farming: Effortless Route of Earning Interest on Crypto

Yield farming has also been able to generate network effects on the platform that greatly amplify the demand for the platform tokens, consequently increasing their market value.

The allure of yield farming persists as long as crypto investors seek avenues to earn interest. The DeFi platform leverages funds from individual liquidity providers (LPs) who contribute capital to power their services. LP is one of the methods of profiting from yield farming which works by acquiring and holding tokens from leading yield farming enterprises.

Market Overview

The major market crash of 2022 inflicted losses exceeding hundreds of billion dollars, marking a staggering decline of over 76%. However, since the conclusion of 2023, there has been a notable resurgence in investor enthusiasm for crypto assets. This resurgence can be attributed to Ethereum’s successful transition to Proof of Stake (PoS), the emergence of liquid staking protocols, and the SEC’s green light for Bitcoin spot futures.

Data from DefiLlama reveals an encouraging trend in the Total Value Locked (TVL) within DeFi. By December 31st, 2023, the TVL had reached $65 billion, marking a significant 44% year-over-year increase. Remarkably, just three months later, in March 2024, this figure had nearly doubled, surging to $115 billion.

Lending Versus Staking

Liquid staking plays a major role in shaping the DeFi environment in 2024, especially in the Ethereum (ETH) ecosystem. Rising to the top, Lido took advantage of the need for liquid staking as Ethereum switched from proof of work to proof of stake.

DeFi financing is another well-known industry that has attracted a lot of attention from investors since 2023. Together, the three major protocols Aave, JustLend, and Spark have close to $20 billion in Total Value Locked (TVL).

Yield Farming: Effortless Route of Earning Interest on Crypto

Decentralized exchanges (DEXs) are still popular among Bitcoin enthusiasts who are looking to farm cryptocurrency for the best returns. Maintaining their dominance in this market with high median Annual Percentage Yields (APYs) in the double digits are Uniswap, Curve, and Pancakeswap.

Top-yielding farming platforms include the following; Uniswap (UNI), Aave (AAVE), Curve Finance (CRV), PancakeSwap (CAKE), Lido Finance (LDO), EigenLayer, and JustLend (JST),

Conclusively;

The DeFi environment has become more diverse than it has ever been, with well-known platforms in liquid staking, lending, and DEX yield farming all seeing significant expansion. TVL, or total value locked, increased from less than $50 billion to more than $110 billion, a more than twofold increase.

You can purchase Lucky Block here.  Buy LBLOCK

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News