Top Yield Farming Platforms for 2024 for Pinoys: Maximize Your Crypto Earnings

Discover the top yield farming platforms for 2024 and learn how to maximize your crypto earnings.

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MITOSIS Airdrop Guide: How to Farm 5 Airdrops At One Go (Bonus Tips and Invitation Code Inside)

I recently discovered the potential of EtherFi, which allows me to farm multiple airdrops simultaneously. With just one ETH, I’ve...

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Deciphering Pendle Finances surge and the pop up of Notcoin

Pendle Finance and Notcoin recently experienced roughly 58.6% and 400% price growth, respectively, and are thus among the recent top performers.

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LayerZero identifies over 800K addresses in sybil self-reporting phase

Initially, the team identified over two million addresses as potential sybils but later refined their criteria to minimize false identifications, resulting in a more precise classification.

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ShibaSwap rolls out major upgrade, moves to Shibarium

Previously only available on the Ethereum blockchain, the DEX will now operate on both Shibarium and Ethereum.

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Fake token copies Ethena Labs, gets exploited for $290K on Binance Launchpool

Someone posing as Ethena Labs made a fake token.

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DeFi Lending Platforms and Yield Farming Strategies

<p>For the past few years, Decentralized Finance (DeFi) has been a buzzword in the cryptocurrency space. DeFi lending platforms and yield farming strategies are two of the most popular DeFi applications. In this article, we'll look at what DeFi lending platforms and yield farming strategies are, how they work, and what the benefits and risks are. </p><p>What Are DeFi Lending Platforms?</p><p>DeFi lending platforms are decentralized applications (dApps) that enable individuals to lend and borrow cryptocurrencies without the use of third-party intermediaries such as banks. These platforms use smart contracts to automate lending and borrowing processes, and they are built on blockchain technology. </p><p>DeFi lending platforms operate by directly connecting lenders and borrowers, with the lending platform serving as a facilitator. The lender transfers their cryptocurrency to the lending platform, which then lends it to borrowers. </p><p>The borrower pays interest on the borrowed cryptocurrency, while the lender earns interest on the cryptocurrency they deposit. </p><p>DeFi lending platforms have a number of advantages over traditional lending platforms. For starters, they are decentralized, which means they are not governed by a centralized authority, such as a bank. </p><p>This reduces the risk of censorship while also providing users with greater security and transparency. Second, because there are no intermediaries, they can offer higher interest rates than traditional lending platforms. Finally, anyone with an internet connection, regardless of location or credit score, can access them. </p><p>Aave, Compound, and MakerDAO are some popular DeFi lending platforms. </p><p>What Is Yield Farming?</p><p>Yield farming is a DeFi strategy in which cryptocurrencies are staked or lent in order to earn rewards in the form of additional cryptocurrency tokens. To maximize their rewards, yield farmers typically move their cryptocurrency between different DeFi protocols. </p><p>Yield farming is accomplished through the use of liquidity pools, which are pools of cryptocurrencies used to provide liquidity for DeFi applications. </p><p>Yield farmers contribute liquidity to these pools by depositing cryptocurrency, which is then used by the DeFi app. In exchange, the yield farmer receives a portion of the application's fees. </p><p>Farmers who stake their cryptocurrency in governance protocols can also earn rewards. Users can vote on proposals to change the parameters of a governance protocol, such as interest rates or reward allocation. </p><p>Yield farmers who stake their cryptocurrency in governance protocols receive additional tokens as a reward. </p><p>The Advantages and Disadvantages of DeFi Lending Platforms and Yield Farming</p><p>DeFi lending platforms and yield farming have several advantages, but they also have risks. </p><p>Benefits</p><p>Higher interest rates: Because there are no intermediaries, DeFi lending platforms offer higher interest rates than traditional lending platforms. </p><p>Accessibility: Anyone with an internet connection, regardless of location or credit score, can use DeFi lending platforms and yield farming. </p><p>Transparency: Because DeFi lending platforms and yield farming are decentralized, users have greater security and transparency. </p><p>Users can earn rewards in the form of additional cryptocurrency tokens through yield farming. </p><p>Risks</p><p>Volatility: Because cryptocurrency is highly volatile, the value of cryptocurrency deposited on DeFi lending platforms can fluctuate rapidly. </p><p>DeFi lending platforms and yield farming rely on smart contracts, which are self-executing contracts with the terms of the agreement written directly into code. Smart contracts are not perfect and are susceptible to bugs, hacks, and exploits. </p><p>Yield farming is dependent on liquidity pools, which can experience liquidity shortages or price fluctuations. </p><p>Regulatory risk: DeFi lending platforms and yield farming are still in their early stages, and regulatory frameworks are being developed. There is a chance that regulatory bodies will restrict or prohibit these activities. </p><p>Building a Successful Yield Farming Strategy</p><p>Yield farming is a relatively new trend in the world of decentralized finance (DeFi), but it has already gained a lot of attention from investors looking to maximize their returns. Put simply, yield farming involves lending out cryptocurrency in order to earn interest or reward tokens in return. However, as with any investment strategy, there are risks involved. Here are 5 elements which go into building a successful yield farming strategy:</p><p>Diversify Your Portfolio</p><p>One of the most important strategies for successful yield farming is to diversify your portfolio. This means spreading your investments across different platforms and tokens. By diversifying, you can reduce your exposure to any single asset or platform, which can help to mitigate risk. It's important to do your research and choose platforms and tokens that have a strong track record and are backed by reputable teams.</p><p>Use Reputable Platforms</p><p>When it comes to yield farming, it's crucial to use reputable platforms. There have been cases of some platforms being hacked or experiencing technical difficulties, resulting in investors losing their funds. Make sure to choose platforms that have a strong reputation in the DeFi community and a track record of security and reliability.</p><p>Understand the Risks</p><p>While yield farming can be a lucrative investment strategy, it's important to understand the risks involved. The value of cryptocurrencies can be volatile, and the DeFi space is still relatively new and untested. As with any investment, it's important to do your due diligence and understand the risks involved before investing your money.</p><p>Consider Staking</p><p>Another successful yield farming strategy is staking. Staking involves locking up your cryptocurrency in order to help secure the network and earn rewards in return. This can help to increase the value of your investment, as well as provide a steady stream of income. However, it's important to choose a reputable staking platform and do your research to ensure that you are earning a fair rate of return.</p><p>Keep an Eye on Market Trends</p><p>Finally, it's important to keep an eye on market trends when yield farming. The DeFi space is constantly evolving, and new platforms and tokens are being introduced all the time. By staying up to date with the latest trends and developments, you can position yourself to take advantage of new opportunities and maximize your returns.</p><p>Conclusion</p><p>DeFi lending platforms and yield farming are exciting blockchain applications that provide users with higher interest rates, accessibility, and transparency. </p><p>However, they do come with risks such as volatility, smart contract risk, liquidity risk, and regulatory risk. Before investing in DeFi lending platforms or yield farming,<a href="https://www.financemagnates.com/cryptocurrency/education-centre/everything-you-need-to-know-about-crypto-yield-farming/" target="_blank" rel="follow"> it is critical to understand these risks</a>. </p><p>Investors interested in DeFi lending platforms and yield farming should do their homework and select reputable platforms with a proven track record. They should also diversify their investments rather than concentrate all of their cryptocurrency in a single platform or protocol. </p><p>Finally, DeFi lending platforms and yield farming have transformed the way we think about lending and borrowing by providing users with higher interest rates, accessibility, and transparency. </p><p>They do, however, carry risks, and investors should proceed with caution and conduct research before investing. DeFi lending platforms and yield farming can be profitable investment strategies for savvy cryptocurrency investors with careful consideration and proper risk management.</p> This article was written by Finance Magnates Staff at www.financemagnates.com.

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Homesteader Conversations: Midwestern Farmers On Why Bitcoiners Understand Natural Balance

Jack and Liv, two Midwestern homesteaders and Bitcoiners, discuss their farm, food health and how Bitcoiners inherently understand symbiosis.

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Differences Between Staking, Yield Farming, and Liquidity Mining

<p class="MsoNormal">Over the last five years cryptocurrencies have exploded at an unprecedented rate, but so have the different methods of making income in the cryptocurrency world. No longer do investors have to simply rely on trading to make a profit from crypto. </p><p class="MsoNormal">Now, crypto enthusiasts can contribute to blockchains through PoS (Proof of Stake), provide liquidity to pools, and extract the best possible yields through farming. The possibilities are almost endless and ever-expanding for investors wanting both passive and active income-generating activities.</p><p class="MsoNormal">With such great returns available to be made in the cryptocurrency world, analyzing the opportunity cost of each option is the best way to find a route that suits you.</p><p class="MsoNormal">Let's discuss the differences between Yield Farming, Staking and Liquidity Mining.</p><p>What is Yield Farming?</p><p class="MsoNormal">Yield farming is the act of generating rewards such as interest and cryptocurrency by staking assets on dApps through a DeFi platform. The cryptocurrency is locked up for a certain period of time and acts as liquidity for lending, borrowing and trading.</p><p>Automatic Market Makers (AMMs)</p><p class="MsoNormal">A key concept for yield farming is AMMs, which <a href="https://www.financemagnates.com/fintech/prime-time-liquidity-between-retail-and-institutional-trading/" target="_blank">liquidity </a>pools are essential for, where many yield farmers staked cryptocurrency is stored in. Automatic market makers allow automatic and permissionless trading for their users, instead of traditional buyers and sellers systems, used in centralized exchanges.</p><p>What is Liquidity Mining?</p><p class="MsoNormal">Liquidity mining is a form of yield farming and another DeFi lending protocol, where users will stake their cryptocurrency into a pool to be used by other users. Liquidity mining rewards are focused on receiving coins from the platform they are ‘lending’ on, hedging their bets that their value will increase in the future.</p><p class="MsoNormal">Like any liquidity pool, providers are rewarded based on the amount of the liquidity pool they provided for.</p><p>What is Staking?</p><p class="MsoNormal">Although staking, yield farming and liquidity mining can often be used interchangeably, there are some key differences. Staking is often seen as the simplest of the three and the most accessible to the average crypto enthusiast. </p><p class="MsoNormal">Staking is the act of locking up your cryptocurrency for a defined or undefined period of time to obtain rewards, usually interest.</p><p class="MsoNormal">Most staking protocols come with specific lock-up rules to ensure liquidity is confirmed for a certain period of time. Staking is the backbone of the PoS (Proof of Stake) model, allowing individual investors to contribute to the blockchain with their cryptocurrency by staking it through validators. </p><p class="MsoNormal">Validators ensure each transaction is secure without a regular third party, like a bank. Unlike the Proof of Work model, which is used in bitcoin, PoS is a lot less resource-intensive and efficient. </p><p>What’s the Difference Between Yield Farming, Staking, and Liquidity Mining?</p><p>Staking</p><p class="MsoNormal">Maybe the biggest difference between <a href="https://www.financemagnates.com/cryptocurrency/the-next-blockchain-technologies-that-will-revolutionize-smart-contracts/">Staking</a>, yield farming and mining is where you can provide liquidity. Staking, as it’s used as the core validating method for many cryptocurrencies is available almost everywhere. </p><p class="MsoNormal">Big, centralized exchanges or CEXs, such as Binance allow their users to simply provide the crypto required for the stake and they will configure the rest. This allows for hands-off staking and extremely ‘passive’ income. </p><p class="MsoNormal">Also, staking has a lower barrier to entry, many users can stake as little as one USD to start earning rewards.</p><p class="MsoNormal">Safety: Well over $100 billion in crypto assets are currently being staked, as they are the backbone of many cryptocurrencies, unlike yield farming and liquidity mining which operate on more niche or less used platforms. With this massive participation comes safety. </p><ul type="disc"><li class="MsoNormal">You are much less likely to lose money staking, although it is possible.</li><li class="MsoNormal">Rewards can be completely passive</li><li class="MsoNormal">Complex strategies are not required</li></ul><p>Yield Farming</p><p class="MsoNormal">Yield farming when done properly is a lot more hands-on than traditional staking. Investors' crypto is still being ‘staked’ but can only be done on DeFi platforms, such as Pancake swap or Uni swap. </p><p class="MsoNormal">Yield farming operates on smaller blockchains to help provide liquidity, creating much more risk potential.</p><p class="MsoNormal">With this extra effort comes extra reward. Yield farmers can receive a cut in transaction fees and token rewards on top of their usual interest, making the potential APY a lot more lucrative. </p><p class="MsoNormal">However, for yield farmers to truly maximize their earnings, in the spirit of a yield farmer, they can change pools as often as weekly and are constantly readjusting their strategies to maximize earnings.</p><p class="MsoNormal">As you can see, yield farming has a higher barrier to entry than staking and liquidity mining, especially when participating in pools run on chains with high fees, such as ERC-20.</p><p>Liquidity Mining</p><p class="MsoNormal">Liquidity mining directly helps keep blockchain technology decentralized. The main difference is the rewards received. Liquidity miners will often receive the native token of the blockchain as a reward and have a chance to earn governance tokens, giving them a vote on any new legislature, empowering each individual.</p><p>The Risks Involved with DeFi</p><p class="MsoNormal">As traditional staking can be completed on centralized exchanges, like staking your CRO on crypto.com they are less vulnerable to the downsides of DeFi. However, staking is the basis of yield farming and liquidity mining, so the risks listed below are able to occur on any DeFi protocol. Staking is also mainly done on DeFi protocols, only recently becoming more mainstream with big exchanges offering the option. Here are the biggest risks you should be aware of as a potential user:</p><ul type="disc"><li class="MsoNormal">Exit Scams: Providing liquidity on new blockchains means exit scams such as rug pulls are more common and harder to foresee. </li></ul><ul type="disc"><li class="MsoNormal">Smart Contract Exploits: Bugs in smart contracts can be abused to take funds from liquidity providers.</li></ul><ul type="disc"><li class="MsoNormal">Information asymmetry: There is no centralized body regulating information that most investors are used to. Although DeFi creates a trustless and permisionless space for investors, great information asymmetry can promote distrust in users while combining with the anonymity of crypto creates a marketplace rife with scams.</li></ul><ul type="disc"><li class="MsoNormal">Impermanent Loss: Can happen when the liquidity you provided is worthless at the time of withdrawal than when you put it in the pool. Liquidity is often locked for a set period of time, anything can happen in the crypto market during that time.</li></ul><p>Are there Any Risks in Staking?<h2< h2=""></h2<></p><p><h2< h2=""></h2<>Staking may seem like the obvious option after reading the risks of DeFi protocols and the ease of rewards. However, nothing in crypto is risk-free! All methods of locking up <a href="https://www.financemagnates.com/cryptocurrency/" target="_blank">cryptocurrency</a> come with the risk of impermanent loss, meaning the cryptocurrency that you have staked has decreased in value compared during the lock-up period, compared to the amount of interest received. </p><p>Also, most users will not become validators and only provide their liquidity to a validator of their choosing. Validators are open to slashing events, a process that occurs to punish validators for wrong behavior. Slashing events, depending on the rules, will slash a certain percentage or status amount of cryptocurrency as punishment.</p><p>Best Rewards: Yield Farming, Staking, or Liquidity Mining? </p><p class="MsoNormal text-align-start">There is no one size fits all for <a href="https://www.financemagnates.com/cryptocurrency/education-centre/everything-you-need-to-know-about-crypto-yield-farming/" target="_blank">staking, yield farming or liquidity mining</a>. Returns depend almost completely on the individual's ability to find the best stakes or farms and their process of re-allocating rewards from their stakes.</p><p class="MsoNormal">Also, luck and diversification play a huge role in the success of any crypto investor, with staking, yield farming and liquidity mining being no different. </p><p class="MsoNormal">With any type of investing, the attitude the investor has towards risk also plays a massive role in the potential gain. Staking, for example, can be extremely lucrative when compared to other interest-receiving investments such as dividends. </p><p class="MsoNormal">Already, you can stake cryptocurrency relatively safely, for crypto standards, for great double-digit APY, unheard of outside the crypto world. So, many investors should be happy with that return and with enough capital can make a large weekly return by staking cryptocurrencies with big backing, such as CRO.</p><p class="MsoNormal">Knowing what you want from your investments is key in the staking world. Yield farmers are naturally going to pursue the highest yields possible, many simply for bragging rights, so always focus on what your goals are and zero in on them.</p><p class="MsoNormal">You should always do your own research before blinding jumping into what seems like a great opportunity, especially in the land of DeFi.</p><p>Great Platforms to Start Staking</p><ul type="disc"><li class="MsoNormal">Nexo: Up to 8.5% APR while staking <a href="https://www.financemagnates.com/tag/bitcoin/" target="_blank">Bitcoin</a>. Being able to receive such massive rewards from the largest and safest best in the crypto world is a gem many investors are missing.</li><li class="MsoNormal">Crypto.com: Crypto Visa card options with up to 10% APR, paid weekly. Crypto.com offers several great options for staking their native currency, CRO, and many others with easy access to DeFi with their friendly DeFi wallet app.</li><li class="MsoNormal">Kraken: Great platform with a great pool of stakable currencies to choose from, with a great reputation for security and privacy.</li></ul><p>Yield-Farming and Liquidity Mining</p><p class="MsoNormal">All yield-farming and liquidity are done through DeFi, meaning you must interact with a decentralized exchange so it’s important you do your own research before jumping in. The rewards can be high, but so are the stakes. Some of the most trusted DeFi platforms to start your yield farming or liquidity mining journey include:</p><ul type="disc"><li class="MsoNormal">Pancake Swap</li><li class="MsoNormal">Sushi Swap</li><li class="MsoNormal">1inch</li><li class="MsoNormal">Uniswap</li><li class="MsoNormal">Curve Finance</li></ul><p>Conclusion</p><p class="MsoNormal">Making the best investment in a growing and everchanging market like cryptocurrency can be paralyzing. Ensuring you are receiving the best rewards with the lowest rate can create too many options that investors chose none. </p><p class="MsoNormal">Most importantly, investors should consider their risk tolerance as the number one factor guiding their investment choices. In the world of cryptocurrency staking and yield farming, especially on DeFi, the higher the potential rewards, the less likely that option will be viable for a long time. </p><p class="MsoNormal">Decide what factors are most important to you, whether that be security or passivity, create a game plan and execute.</p><p>FAQ</p><p>Is Yield Farming the Same as Staking?</p><p class="MsoNormal">While these techniques sound similar there are some differences between yield farming and staking. Staking is most commonly used as a validating method for many cryptocurrencies is available almost everywhere. </p><p class="MsoNormal">In addition, staking has a lower barrier to entry relative to yield farming, many users can stake as little as one USD to start earning rewards.</p><p>Is Yield Farming Profitable?</p><p class="MsoNormal">Anything that is profitable carries a degree of risk and each individual has to reconcile these two. Yield farming can be profitable with the right timing and luck. </p><p>Is Yield Farming Worth It?</p><p class="MsoNormal">Every individual has to decide for themselves if the style of investing is worth it and yield farming is no exception. There are plenty of examples of people who have made thousands, or lost fortunes. </p><p>Is Yield Farming Safer Than Staking?</p><p class="MsoNormal">Staking is a safer option, namely given the degree of risk involved. Yield farming carries a large degree of risk given so much volatility that can crop up out of nowhere in the form of rug pulls or other forces.</p> This article was written by Finance Magnates Staff at www.financemagnates.com.

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Everything You Need to Know About Yield Farming

<p class="MsoNormal">Yield farming, or liquidity farming, is the act of lending or staking your cryptocurrency into a liquidity pool, through DeFi (Decentralized Finance) to receive rewards such as interest and more of their staked cryptocurrency. Similar to traditional staking, it can be seen as the equivalent of lending fiat money to a bank.</p><p class="MsoNormal">Interest rates or rewards rates are often measured in APY, which is the annual return rate of an asset, inclusive of compounding. The more frequently the interest compounds, the greater difference between the APY and APR of an investment. Banks and other more traditional investments usually stick to a flat APR.</p><p class="MsoNormal">Yield farming is often seen as the equivalent of Silicon Valley startups like Uber, which offer great incentives for early investors into the platform. New blockchain apps need liquidity to help sustain and eventually grow the platform, which is where yield farming steps in.</p><p class="MsoNormal">All staked cryptocurrency via yield farming is combined into a liquidity pool, usually for a specific pair of <a href="https://www.financemagnates.com/cryptocurrency/what-will-drive-the-next-crypto-bull-run/" target="_blank">cryptocurrencies</a>, such as CRO/ETH. These liquidity pools may be operated by Automatic Market Makers offering automated and permissionless trading tapping into liquidity pools instead of the generic buyers and sellers’ system.</p><p class="MsoNormal">When investing in a liquidity pool, users will receive a Liquidity Pool token to keep track of their overall contributions to the pool. This LP token will represent the percentage of the liquidity pool the investor has provided and will be exchanged when you exit the pool.</p><p class="MsoNormal">Fact: The word ‘farming’ in yield farming comes from the farming analogy about ‘growing’ your cryptocurrency.</p><p>What Is a Yield Farmer?</p><p class="MsoNormal">A crypto enthusiast with in-depth knowledge and a high tolerance for risk, continuously and relentlessly trying to optimize their yield by <a href="https://www.financemagnates.com/terms/s/staking/" target="_blank">staking</a> cryptocurrency. Yield farmers will often move to different pools every week, chasing the highest APY.</p><p class="MsoNormal">For example:</p><p class="MsoNormal">A yield farmer may make an initial investment into a farm using x token. They will receive some Y tokens for their participation.</p><p class="MsoNormal">They may then go and use their Y tokens on a liquidity pool that offers even more rewards, always trying to optimize their return.</p><p>How Does Yield Farming Work?</p><p class="MsoNormal">An investor will stake their cryptocurrency coins through a ‘lending protocol’ via a dApp (decentralized app on DeFi). Now that their liquidity is in, other investors can choose to borrow the liquidity for their own investments, trying to catch large swings in the staked coins' price.</p><p class="MsoNormal">As yield farming is used to reward early investors, often governance tokens of that <a href="https://www.financemagnates.com/cryptocurrency/the-next-blockchain-technologies-that-will-revolutionize-smart-contracts/" target="_blank">blockchain</a> will be given out to keep them as a user, and their liquidity in the system. </p><p class="MsoNormal">Governance tokens help keep a project decentralized and allow real users to vote on any new legislature. Governance tokens are at the core of any DAO or project which aims to be fully run by its users.</p><p class="MsoNormal"><a href="https://www.financemagnates.com/fintech/prime-time-liquidity-between-retail-and-institutional-trading/" target="_blank">Liquidity</a> pools essentially keep the ecosystem alive and are where most of the early liquidity will come from in smaller projects.</p><p>What Are the Potential Rewards for Yield Farming?</p><p class="MsoNormal">Crypto yield farming first came available in 2020, and many yield farmers have bragged about triple-digit APY rates, unheard outside of the crypto space. However, these rates bring volatility. Often, the tokens received as rewards from such farms are extremely volatile and prone to rug pulls. We will dive deeper into the risks of yield farming later in the article.</p><p class="MsoNormal">You can find a full list of the most used and profitable yield farms, with daily and yearly APY <a href="https://coinmarketcap.com/yield-farming/">here</a>. CoinMarketCap simply views this as a resource and investors are recommended to do their own research before dipping their toes into the volatile world of yield farming.</p><p class="MsoNormal">Many crypto yield farms with low impermanent loss risk continue to hold double-digit yearly APYs, with niche coin pairs and riskier farms reaching triple and even quadruple-digit APY returns, unsustainable but profitable in the short term.</p><p class="MsoNormal">Although almost all crypto trading is speculation, to consistently profit from yield farming, high-level strategies are usually required and a decent chunk of change is often recommended, even as a beginner.</p><p>Liquidity Mining</p><p class="MsoNormal">Usually, a crypto yield farmer will receive interest for their stake based on the APY. However, liquidity mining is when the farmer also receives a new token on top of their existing interest as a thank you for participation.</p><p>Risks of Crypto Yield Farming</p><p class="MsoNormal">Like anything in a purely speculative market like cryptocurrency, a higher tolerance for risk than normal is usually required, yield farming is no exception. Yield-farming is done only on Decentralized Exchanges (DEX) which leads to a multitude of potential risks.</p><p>Rug Pulls</p><p class="MsoNormal">Rug pulls occur when the developers or founders of a cryptocurrency decide to abandon a project, usually unannounced, by pulling the project’s liquidity funded by investors. The investors keep their coins, but they are now worthless. </p><p class="MsoNormal">A rug pull is an exit scam, the founders have zero intention of returning to the project. Yield farmers are at a greater risk than normal to exit scams based on the type of startup cryptocurrency projects they are investing in, combined with the natural anonymity of crypto.</p><p>Smart Contract Bugs or Hacks</p><p class="MsoNormal">The most prominent risk in yield farming, smart contract risk occurs when bugs make the farmer’s funds vulnerable to being hacked or stolen.</p><p>Impermanent loss</p><p class="MsoNormal">During the stake, the farmer’s coins still follow the market value of that coin, meaning an investor can in theory lose a lot more than received through interest if their staked crypto drops a lot in value.</p><p class="MsoNormal">However, this can be argued that the farmer would not have sold even if they were not staking their coins, so at least they have gained some interest.</p><p>Volatility</p><p class="MsoNormal">On the same note as impermanent loss, dealing with extremely volatile cryptos can mean a skyrocket or plummet while your crypto is locked in a stake, and there’s nothing you can do about it until the coins are released.</p><p>What Are the Best Platforms for Yield Farming</p><p class="MsoNormal">The general go-to platforms for yield farming are any well-known decentralized exchanges that support dApps. Good examples would be:</p><ul type="disc"><li class="MsoNormal">Uniswap</li><li class="MsoNormal">Pancake swap</li><li class="MsoNormal">Sushiswap</li><li class="MsoNormal">1inch Network</li></ul><p class="MsoNormal">Please remember that <a href="https://www.financemagnates.com/executives/defi-cedefi-and-how-to-profit-in-the-midst-of-the-bear-market/" target="_blank">DeFi </a>has a much higher learning curve for new users than centralized exchanges, if mistakes are made, they can cost you dearly! Do your own research before jumping into any of these platforms!</p><p>1inch Network</p><p class="MsoNormal">The 1inch network is a great place for beginners to start their yield farming journey, as they pool the best rates and pools from all over the crypto sphere, meaning you will not have to manually hop around several different decentralized exchanges or dApps to find the best pools for you to provide liquidity.</p><p class="MsoNormal">1inch has a simple guide on how to start yield farming with them. You can find it <a href="https://help.1inch.io/en/articles/4778303-yield-farming-how-to-participate-in-the-liquidity-mining-program-on-1inch#:~:text=program%20on%201inch%3F-,Yield%20farming%20%2D%20How%20to%20participate%20in,liquidity%20mining%20program%20on%201inch%3F&text=To%20participate%20in%20the%20liquidity%20mining%20(yield%20farming)%20program%20and,one%20of%20the%20selected%20pools.">here</a>.</p><p class="MsoNormal">There is arguably no ‘best’ platform for yield farming. Each platform will allow yield farmers to operate on different chains, so doing your research before settling on one is your best bet. </p><p class="MsoNormal">Having a clear strategy before starting will allow the pieces to fall in place more smoothly and with less risk.</p><p>Is Yield Farming Worth It?</p><p class="MsoNormal">To be truly successful at crypto yield farming, you not only must have a working strategy in place to maximize your yield and the initial capital to invest, but you must also be passionate about making passive income, actively. </p><p class="MsoNormal">Although you can simply stake in safe pools, the spirit of yield farming is to chase the best possible yields. </p><p class="MsoNormal">The key takeaway to deciding whether yield farming is worth it to you is, what do you want? Yield farming, especially on chains such as Ethereum with high gas fees is only viable for those looking to invest a considerable sum, otherwise, your initial investment will get eaten by gas fees.</p><p class="MsoNormal">If you are not looking to invest a considerable amount of time learning strategies and finding the best pools, it may be better to try basic staking first and learning the basics, then graduate to become a yield farmer.</p><p>Final Thoughts</p><p class="MsoNormal">Ultimately, your risk tolerance will ultimately determine your success in yield farming. Those willing to micromanage their different farms constantly and tediously will make the biggest wins and bounce back from their losses the quickest </p><p class="MsoNormal">Yield farming is a great way for more experienced DeFi users to get stuck in and become part of the community, and something for new investors to look forward to, or simply dip their toes in.</p><p class="MsoNormal">FAQ</p><p>Is Yield Farming Profitable?</p><p class="MsoNormal">Crypto yield farming can be very profitable if properly executed, with numerous examples of individuals earning sizable gains since 2020. However, profits are dependent on volatility and should be properly understood, as well as any potential risks.</p><p>What is Yield Farming?</p><p class="MsoNormal">As is the case with traditional staking and rewards, crypto yield farming can be seen as the equivalent of lending fiat money to a bank. This technique is often seen as an incentive for early investors of a given platform. Many new blockchain apps require substantial liquidity to help sustain and eventually develop a project.</p><p>What is the Best Crypto to Yield Farm?</p><p class="MsoNormal">Users can familiarize themselves with many crypto yield farming platforms. Some of the largest include eToro and Crypto.com.</p><p>How Do You Earn Yield on Crypto?</p><p class="MsoNormal">An investor generally will stake their crypto coins via a ‘lending protocol’ such as dApp. By harnessing their own resources, additional investors can choose to borrow the liquidity for their own investments, thereby aiming to catch large swings in the staked coins' price.</p> This article was written by Finance Magnates Staff at www.financemagnates.com.

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Yield Farming tokens to keep an eye on at the end of June

Uniswap UNI/USD, Aave AAVE/USD, and Synthetix Network SNX/USD are some of the best yield farming tokens you can get at the end of June.

Uniswap made an announcement that they acquired Genie, the first NFT marketplace aggregator.

AAVE as a cryptocurrency has been accumulated by whales throughout the past month, according to a report by Santiment. 

Synthetix made an announcement surrounding the Synthetix Community Governance call, where they will dive deeper into the upcoming updates.

All of these updates and developments can contribute to the growth of each project’s ecosystem, as well as the value of each cryptocurrency.

On June 28, 2022, Uniswap (UNI) had a value of $5.279.

The all-time high of Uniswap (UNI) was on May 3, 2021, when the token reached a value of $44.92.

Taking a look at its performance throughout the previous month, Uniswap (UNI) had its highest point of value on May 5 at $8.0409. Its lowest point was on May 12 at $4.1263.

Here we can see a decrease in value of $3.9146 or by 48%.

However, since then, the token has grown in value by $1.1527 or by 28%.

At this rate, UNI can reach $9 by the end of July 2022, making it a solid cryptocurrency to buy.

On June 28, 2022, Aave (AAVE) had a value of $66.38.

Going over its all-time high, Aave (AAVE) had its highest point of value on May 18, 2021, at $661.69.

Going over how the token performed throughout the previous month, Aave (AAVE) had its highest point of value on May 5 at $161.33, while its lowest point of value was on May 12 at $70.23.

Here we can see a decrease in value of $91.1 or by 56%.

This makes $66.38 a solid entry point for the AAVE cryptocurrency, as it can climb to $80 by the end of July 2022.

On June 28, 2022, Synthetix Network (SNX) had a value of $2.41.

Looking at the all-time high of the cryptocurrency, Synthetix Network (SNX) had its all-time high on February 14, 2021, at $28.53.

When we take a look at its performance in May, Synthetix Network (SNX) had its highest point of value on May 5 at $5.142, while its lowest was on May 12 at $2.2227.

Here we can see a decrease of $2.9193 or 56%.

However, with its recent growth in mind, SNX is a solid buy at $2.41, as it can climb to $5 by the end of July 2022.

The post Yield Farming tokens to keep an eye on at the end of June appeared first on Invezz.

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Continue reading How to Kickstart Your Journey into DeFi Yield Farming as a Beginner at DailyCoin.com.

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