The practice of “yield farming” is staking or lending cryptocurrency in order to produce high returns or rewards in the form of extra cryptocurrency. Decentralized finance (DeFi) is an innovative yet risky and unpredictable technology that has recently gained enormous appeal due to additional advancements like liquidity mining. The still-emerging DeFi industry is now driven by yield farming, which will help it grow from a market valuation of $500 million to $20 billion in 2025.
Yield farming protocols reward liquidity providers (LP) for staking or locking up their cryptocurrency assets in a liquidity pool based on smart contracts. These incentives may take the form of a governance token, interest from lenders, or a portion of transaction costs. An annual percentage yield (APY) is used to express these results. The value of the issued returns decreases proportionately to the increase in investors’ contributions to the associated liquidity pool.
Farmers staked the popular stablecoins USDT, DAI, and USDC. The most well-liked DeFi protocols, however, currently run on the Ethereum network and provide governance tokens for ‘liquidity mining’. In exchange for supplying liquidity to decentralized exchanges (DEX), tokens are farmed in these liquidity pools.
Nowadays, the majority of yield farming protocols compensate liquidity providers with governance tokens, which are typically exchanged on both centralized and decentralized exchanges, like Binance and Uniswap.
The StaFi $rETH Farming Campaign
Now we know about farming and how users can take advantage, it’s fine to see the new farming campaign by StaFi Protocol.
It’s the rETH Campaign Farming. There are rewards for this.
All you have to do is stake your $ETH on StaFi and get a bonus APR of 76.16%. The rewards would come in FIS tokens. You would no be able to redeem rewards until the end of the 60 days campaign.
To get started, join this campaign: https://app.stafi.io/rpool
StaFi website: https://stafi.io
StaFi Twitter: https://twitter.com/stafi_protocol
StaFiHub Twitter: https://twitter.com/StaFiHub_