Since you landed here, I assume that you are interested in Cryptocurrency and you probably stumpled over Terms like DeFi or DEX and for sure over one of the hottest topics this times, Yield Farming.
In this article, we are going to talk about this very special Term: Yield Farming.
Basically, Yield Farming is lending money and get paid interest for this money.
Yield Farming is a great method with very good potential to make good money due to high return rates. This Return Rates are known as APY or APR. What the difference between theese two is, will be discussed in another Article following here on crypdoo.com
With that said, lets take a closer look.
What is yield farming basically right now in the cryptocurrency world and blockchain world?
Yield Farming is a new concept that has been growing in the last two years and it will be probably a big part from our finance future at a global level, which is decentralized finance known under the short term DeFi.
Actually Yield Farming is not really complicated, if you know what it´s all about and how to do it.
There are a few essential things that are neccessary to start Yield Farming.
First of all, you need Money, of course, then you need a Exchange like BINANCE where you can change or buy Cryptocurrency. Next you need a Wallet and you need a Swap Project where you can invest your Cryptocurrency.
When you have this things together, you would be ready to start Yield Farming.
Now basically what Yield Farming is, is that different people put together their resources to give liquidity to Swap Platforms who do DeFi – Decentralized Finance.
Now what does that mean?
What these platforms do as in terms of services, they offer “lending” to different people who need to borrow money in order to participate in different projects and financial services. But all this is only possible since Smart Contracts and the Blockchain exists, because everything happens decentralized. Lending money is for these Platforms only possible if they have Liquidity. This is where YOU come into the process. If you do Yield Farming, YOU provide this Liquidity.
That’s what Yield Farming does, it provides liquidity from all people put their resources together to these new decentralized finance projects.
Here an Example:
Let´s assume you already have a BINANCE Account.
You now buy BNB (Binance Coin) worth 100 Dollars on Binance with your Credit Card.
You already have a DeFi capable Wallet like MetaMask running on the BSC (Binance Smart Chain)
Now you transfer your BNB Coins to your MetaMask Wallet.
IMPORTANT: Make sure that there are always some BNB in your Wallet, because ALL Transactions need to be paid in BNB
When your Wallet is connected, you´ll see tghe Menu on the left side and you selct “Trade” and then you click on “Exchange”.
Here you Swap 50% of your BNB to NIOB Token and 50% of BNB to ANCHOR Token
Next you klick on the Projects Website (in this example the NIOB Site) on “Farm Planets” and select the ANCHOR / NIOB LP Farm
The next Step is to provide Liquidity. Go to “Trade -> Liquidity” and click on “Add Liquidity”
Now you select in the upper field “NIOB” and in the field below “ANCHOR”
Now you have to put in the amount of available NIOB in the UPPER FIELD and the amount of anchor will be filled automatically.
Make sure the amount in the lower field is not greater than the available amount displayed!
Check the output window and then click on “SUPPLY”
NOW you have provided LIQUIDITY
The final Step is to generate INCOME for your Liquidity
Select “Farm Planets” from the Menu
Select “ANCHOR / NIOB LP and click on “Details” and the window expands.
First you have to approve the Contract by clicking on “Enable Farm”
After confirmation, you´ll see a ” – ” and a ” +” Icon
Click on the ” +” and a Window will pop up where you can see your available LP Tokens
Click on “MAX” to to add all LP Tokens and then click on CONFIRM
After confirmation your details are displayed – and only from this point on, you will get rewarded with the current APR
Obviously being something very new, the return can be high but the risk can also be high.
So basically in larger terms, that’s what yield farming is.
Now if you are going to keep on reading, what are you going to see?
You are going to see two brand new Platforms who provide Farms and Pools for yield farming and staking Tokens.
The first one is NIOB
NIOB started on Dezember 21st 2021, this is pretty new, and it’s based on BSC – the Binance Smart Chain.
NIOB is the latest State of the Art Decentralized Exchange and Automatic Liquidity Acquisition Yield Farm running currently on Binance Smart Chain. On the NIOB Website, you can see what Farms are available and how high the current APR is. You can also see which Pools are ready for your funding and how high their current APR is. All NIOB Farms and Pools are updated in realtime.
On the NIOB Farm Planets is so much to explore!
NIOB Farms offer multiple farming oppurtunities to you. You will get amazing rewards by staking your LP tokens in return for additional NIOB Tokens.
Current NIOB Farms:
- NIOB / WBNB
- NIOB / BUSD
- ANCHOR / NIOB LP
- NIOB / BTCB LP
- ETH / NIOB LP
- NIOB / DOT LP
Stake NIOB to earn new tokens. You can unstake at any time! Rewards are calculated per block.
Current NIOB Pools to stake:
The second Project which we intoduce is
AnchorSwap is also a very promising project that started in August 2021. The Token used to Farm and Stake is ANCHOR.
Basically it is the same Yield Farming and Staking Project like NIOB, but with a few more Features coming up in 2022.
There will be a fully operable DEX Wallet where you can buy and sell your Cryptocurrency with FIAT money via Credit Cards. AnchorSwap will also launch it´s own NFT Platform.
- ANCHOR / WBNB LP
- ANCHOR / BUSD LP
- WBNB / BUSD LP
- USDT / BUSD LP
- ETH / WBNB LP
- BTCB / WBNB LP
- DOT / WBNB LP
- ADA / WBNB LP
- TRX / WBNB LP
If you´d rather take less risk, AnchoeSwap has also Pools to just stake your Cryptos
On the Websites of the above Swap Projects, you can see the annual potential earnings to expect in the Pools and Farms, and also an indicator which tells us the Value of the staked Tokens or the value of the staked LP-Tokens to calculate the Impermanent loss or the risk of Impermanent, the reward type what you are earning and the percentage of the rewards in the Pool or Farm.
Your Annual Return always depends on the type of token or coin or cryptocurrency that you are going to invest. If you do Yield Farming you obviously want something which has the potential of a high return and a low impermanent loss rate and a reward type which is highly credible or has a lot of demand in the market and can be used easily.
What we have learned by now…
So basically Yield Farming and Staking are public Pools and Farms where people put together their resources.
So Ladies and Gentleman, start your Engines…
Choose your Exchange – your Wallet and your Project…
But again, these are your decisions, you know what to do. We’re just showing you information. We explained to you what yield farming mostly is. Take a look at these platforms. Maybe you want to start or not, I don’t know. You invest at your own risk. Obviously, take a good look, make your own analyzes. And obviously do your research and then do your own decision. We want to just to share the information with you and show the potential of this.
Thank you again for reading.
Disclaimer: We are not giving you financial advice here, nore can we guarantee that you will earn or lose money or
anything like that. You have to do your own research and make your own decisions.