In June 2020, Compound Finance started rewarding lenders and borrowers of cryptocurrencies on its platform with, in addition to typical interest payments to lenders, units of a new cryptocurrency known as the COMP token, which is used for governance of Compound’s platform but is also tradeable on exchanges. Other platforms followed suit, launching the phenomenon known as “yield farming” or “liquidity mining,” where speculators actively shift cryptocurrency assets between different pools in a platform and between different platforms to maximize their total yield, which includes not only interest and fees but also the value of additional tokens received as rewards.

In July 2020, The Washington Post wrote a primer on decentralized finance including details on yield farming, returns on investments, and the risks involved. In September 2020, Bloomberg said that DeFi made up two-thirds of the cryptocurrency market in terms of price changes and that DeFi collateral levels had reached $9 billion.

  • An original area of decentralized finance (DeFi) !
  • High yield !
  • Risk of loss controlled thanks to Nokenchain !
  • Commercial and technical support 7 days a week !
  • Rewards sent monthly !
  • The rewards are paid into the cryptocurrency indicated directly on your wallet (electronic wallet) !
  • A fully automated system !
  • For all people who want to make cryptocurrency yield farming without spending time there !
  • Accessible even without knowledge of yield farming !
  • Order below. You will then be contacted to find out which pool you want to join !

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What is yield farming ?

When you deposit money in a bank, you’re effectively making a loan, for which you get interest in return. Yield farming involves lending cryptocurrency. In return, you get interest and sometimes fees, but they’re less significant than the practice of supplementing interest with handouts of units of a new cryptocurrency. The real payoff comes if that coin appreciates rapidly. It’s as if banks were luring new depositors with the gift of a tulip — during the Dutch tulip craze. Or a toaster, if toasters were the object of wild speculation and price swings.

How does it work ?

The most basic approach is to lend digital coins, such as DAI or Tether, through a dapp such as Compound, which then lends the coins to borrowers who often use them for speculation. Interest rates vary with demand, but for every day’s participation in the Compound service, you get new Comp coins, as well as interest and other fees. If the Comp token appreciates — and it’s more than doubled in value since mid-June — your returns skyrocket as well.

What are the risks ?

Theft, for one. The digital money you lend out is effectively held by software, and hackers seem to always be able to find ways to exploit vulnerabilities in code and make away with funds. Some coins that people are depositing for yield farming are also only a few years old at most, and could potentially lose their value, causing the entire system to crash. What’s more, early investors often hold large shares of reward tokens, and their moves to sell could have a huge impact on token prices. Lastly, regulators are yet to opine on whether reward tokens are or could become securities — decisions that could have a big impact on the coins’ use and value.

Pool Pair Reward type APY

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