The Hype About Yield Farming
In the defi economy, yield farmers lend or stake their crypto funds (cryptocurrencies or crypto assets) against interest to earn a profit – similar to banks in the traditional finance system. In 2020, a few risk-takers made vast amounts of money on Defi and Ethereum, earning 1000%+ APY on their investments. This rightfully made 2020 the farming year, and since then, there has been an enormous surge, pulling investors and ordinary crypto holders to take an interest in this new phenomenon.
Yield farming has quickly become one of the most hyped crypto investment trends and is exploding with new and complex farming protocols. Many experts believe farming to be the future as many are showing keen interest towards it. It is an excellent opportunity for investors looking for innovative ways to generate more crypto holdings and returns. There is a lot to take advantage of, from defi asset-backed lending to AI yield farming. Yield farming brought the market cap from $500 million to $10 billion within a year (2020), driving the growth of the entire Defi industry.
It is pretty evident that yield farming is a high-reward opportunity, but it comes with a fair share of risks – something many investors can vouch for after DAI’s crash on Black Thursday of 2020. This incident shed light on the fundamental issues concerning yield farming, leading those with a lower appetite for risk to steer clear from it. Many have withdrawn from yield farming altogether.
However, crypto veterans and high-risk takers understand that a first tough season doesn’t mean downfall – eventually, the field will harvest. Till there’s a platform that offers 0% risk on investment, it is better to make the most of the current situation. There are better opportunities for beginners to earn yield with Defi safely with minimal risks. Currently, most yield farms are present in the Ethereum ecosystem, but more and more smart contracts are popping up on Binance Smart Chain. These smart contracts are offering some insanely high annual percentage yield (APY) to users who lock their crypto for a certain period to generate higher returns.
This year, in particular, has seen several successful dapp launches, giving crypto holders a chance to take advantage of the yield farming hype. One such smart contract is a newly launched yielding farm called BNBXMAS. It runs on BNB Smart Chain and gives users the opportunity to multiply Binance coins with daily returns ranging from 7.8% to 17%. Additionally, the total returns can be as high as 234% – yes, a triple-digit stable yield!
This platform uses an autonomous AI (Artificial Intelligence) farming model that reduces price volatility and other risks while maximizing profit. The best thing about this smart contract is that you don’t need excessive funds and resources to step into yield farming. Users can also earn extra income through the very rewarding referral program. If you wish to learn more, visit BNBXMAS.com.
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