Decentralized Finance (Defi) remains a crypto buzzword and hot topic. Despite its unwavering and unstaggering popularity. Its growth doesn’t appear to decline nor wane. Every day we continuously see new projects come out to service different sections of the decentralized finance movement. All of which are gearing towards one goal: the increase in overall usage and mass adoption to the benefits of both the users and the entire ecosystem.

Two aspects define Decentralized Finance application in the real world; Yield farming, a type of crypto-themed farming activity where users commit their token to a vault. Staking, where users can choose to lock their tokens/coins for a specific period and get rewards.

Yield Farming

The increased ability to have all of the traditional finance instruments in decentralized finance is expanding rapidly. Staking and Yield Farming, two different earning mechanisms, only with slight distinct features, is the Defi technology centerpiece. Yield farming works like the fixed compound earning attributed to…

Click to continue reading on its source location…

Source: https://themerkle.com/algorithmic-yield-farming/