In recent years, the Decentralized Finance or DeFi market has grown by leaps and bounds due to the stark increase in interest among entrepreneurs and investors alike.The DeFi technology is one of the fastest growing in the financial market and is at the cutting-edge of innovation when it comes to this technology based industry.In this sector, the concept of yield farming is currency on the uptrend with potential investors clamoring to get their piece of the pie. If you’re among one of those forward looking business persons interested in launching in your own DeFi Yield Farming Platform, there is no better choice than Blockchain App Factory!Our Defi Yield Farming Platform Development services are second to none when it comes to promising robust functionality and features. Captivate your users and set yourself apart from the competition with our services.
This is a question that potential inventors might ask. So let’s a quick look at what exactly Yield Farming is. Yield farming is basically the concept of staking cryptocurrencies or other digital assets with the objective of earning rewards. It is basically a form of investment by utilizing cryptocurrency and digital assets as the medium of currency.
Yield farming is one of the newest and hottest topics in the decentralized finance (DeFi) industry. Also known as liquidity mining, yield farming allows investors to earn more tokens or similar rewards for their role in the DeFi app platforms.
As every business person in the sector knows, Decentralized Finances or DeFi Platforms are currently at the forefront of the finance industry. This open source, peer to peer mode of finance is extremely popular among investors for the flexibility and liquidity it offers. Yield Farming allows investors to earn rewards from this concept
This is the second most popular question we get from our clients. The process is pretty simple. In a normal crypto investment, the investor buys the cryptocurrency or digital asset in question for a certain amount of money and hopes that the value goes up to make a profit.In Yield Farming, the concept is different. Instead of the investor buying more cryptocurrencies, they lend the crypto tokens or coins that they already have for a chance to earn a higher profit in the form of interest from its growth.
Essentially, these yield farmers, as they are known, are acting like mini-banks or money lenders to the platform. They lend the crypto coins in their possession, which in turn increases the usage and adoption of cryptocurrencies and grows the market further. They get a ‘yield’ on this investment, thus the term 'yield farming'.With a great deal of liquidity and growing interest among users around the world, yield farming is a greatly growing offshoot of the DeFi market that investors should be on the lookout for.
As a leading name in the industry, Blockchain App Factory provides a comprehensive development avenue for entrepreneurs around the world. Our DApp development built on smart contract blockchain technology, provides users with a robust platform that enables speedy peer-to-peer transactions with complete security and functionality.
The smart contract functionality that we offer comes with an inbuilt system of verification that can be built on the needs of your enterprise. Powered by smart contract functionality, potential investors can onboard on to the Defi platform with ease without the need for manual intervention. The seamless onboarding process happens in a matter of minutes with preset conditions being met.
Built on an open-source platform, our DeFi Yield Farming platform offers complete transparency and visibility to users, gaining their trust, and enabling you to grow the platform with ease.
At Blockchain App Factory, we help elevate your business to the next level with comprehensive development services not only in the Yield Farming for DeFi concept but virtually every aspect of blockchain technology. Get in touch with our team to learn more!
This is one of the most important concepts in the context of yield farming. The Total Value Locked or TVL is the total amount of cryptocurrencies that are set away or locked into a DeFi platform.With the TVL, investors can get a better idea of the volume of lending on the DeFi platform and yield farming market in its entirety.
A Liquidity pool can be easily described as a smart contract that is privy to a certain amount of funding. These liquidity pools act as a “pool” for the investors to lend their cryptocurrencies to. They are rewarded with tokens for their investment, which represents a partial investment or ownership in the platform. These tokens can be transferred to other liquidity pools depending on the rules and regulations of the platform.Yield farming is most commonplace in the Ethereum Smart Contract and the reward token is usually of the ERC-20 type.
This is the foremost question on every investor’s mind. Afterall, they are lending their hard earned cryptocurrencies with the goal of earning interest. So let’s take a look at how this takes place.
The most common way that returns are calculated in Yield Farming is on an annual basis. Let’s take a look at some common terms in the industry.
This type of interest rate is calculated without the effect of compounding. The investor gets returns based on the amount of cryptocurrency invested.
The Yield from the annual percentage refers to a type of returns with the compounding aspect involved. Which essentially means that interest rate recurred is reinvested back into the investment and “compounds” over a period of time.
This is the foremost question on every investor’s mind. Afterall, they are lending their hard earned cryptocurrencies with the goal of earning interest. So let’s take a look at how this takes place.
Yield Farming allows investors to earn rewards in the form of dividends, interest or more tokens for their investment. With each platform having its own rules and protocols, investors are advised to read the regulations of a platform before investing. At Blockchain App Factory, we provide a DeFi platform with a flexible Yield Farming capability that can be built according to the entrepreneur’s needs and requirements. Come tell us about your idea and we will build a DeFi platform with Yield Farming capabilities that follow the protocols that you envision.
Maker is a credit platform that is highly decentralized and enables the creation of DAI. Inventors can open a Maker Vault that can handle assets and collaterals like ETH, BAT, USDC, or WBTC.
Synthetix is a synthetic asset protocol. It enables users to lend or lock up Synthetix Network Token (SNX). Synthetix allows users to use a variety of asset types as their preferred lending method on the DeFi platform.
Aave is a highly popular decentralized protocol for seamless lending and borrowing. Aave is highly popular among yield farmers due to its ability to automate the value of assets by the ever changing market conditions. It provides a hands off approach to yield farming that is enabled with smart contract functionality.
Uniswap is a decentralized exchange (DEX) protocol that enables users to carry out trustless token swaps. It is a highly popular platform among yield farmers due to its seamless integration and frictionless swapping of tokens.
Set up a meeting with our team to discuss the development of a Yield Farming DeFi Platform that is tailored to your needs!
DeFi tokens are a great way to utilize the concept of yield farming. There are numerous DeFi tokens in the market with their own protocols and platform requirements.
Here are some of the most widely used with their ticker symbol.
Yield farming is one of the most lucrative, highly profitable, types of crypto investment with a high liquidity. With increasing adoption among users and easing regulations around the world, Yield farming is growing in popularity with each passing day. As the DeFi platform mode of finance continues to grow, yield farming has a great future in both the near and long term.
Capitalize on this growth with your own Yield Farming DeFi platform with our services. With a proven track record, Blockchain App Factory is the preferred choice among entrepreneurs as the DeFi Yield Farming Development Company to hire.
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