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What is DeFi Yield Farming?

DeFi yield farming is a profitable way of earning rewards through cryptocurrency holdings in the DeFi market. Yield farming refers to holding cryptos and getting interest or fees in the form of rewards. Staking and lending of digital assets within the DeFi protocols to earn a high return in interest is termed as a DeFi yield farming platform. "Farming" here means the high interest produced from the liquidity of different DeFi protocols.

Yield farming benefits lenders as well as borrowers, the liquidity pool will be a valuable source for borrowers who are looking for margin trading. The complete ecosystem runs with the assistance of blockchain-based smart contracts. Yield farming has made its place stagnant by providing a lot of benefits to cryptopreneurs.

Why is DeFi Yield Farming Getting Popular?

  • The main advantage of yield farming is that it brings huge profits for investors, where the crypto holders deposit their cryptos into a lending protocol in return for interest.
  • The generation of token rewards increases the value immediately.
  • You can also sell these rewards at a profit rate and you can reinvest them to gain more profit.
  • As yield farming runs on the DeFi platform it pulls the whole crowd to the network.
  • Yield farming assists a lot of projects by providing liquidity that will be useful for lending and borrowing.

How Does DeFi Yield Farming Work?

Step-1

Liquidity providers deposit the funds into liquidity pools, these funds are managed by smart contracts. The DeFi platform ensures the safety of users' accounts and their funds.

Step-2

The liquidity pools provide a marketplace for users to exchange, lend, and borrow funds. The users who use the DeFi platform will pay the fees. In this way, the liquidity providers can make use of the earnings.

Step-3

Liquidity providers are rewarded in return for locking up their funds in the pool. The returns are given in funds or tokens as per the invested amount.

Step-4

These return funds are deposited in liquidity pools. The liquidity pools use this chance to reinvest in the liquidity pool to reap more yields. With a smart strategy, users can win maximum benefits from yield farming.

How to Calculate Returns in DeFi Yield Farming?

For calculating returns, the following measures play an important role,

Total value locked (CTPL)

TVL is a parametric value that calculates the cryptos locked in DeFi lending platforms. Tracking the total value shows the complete overview of the performance.

Annual percentage yield (APY)

It shows the annual rate of return enforced on borrowers and paid to providers.

Annual percentage rate (APR)

It represents the annual rate of return enforced on capital borrowers but paid to the capital providers.

How do Users Earn Yields?

In yield farming, the return on investment falls into three categories they are,

  • Transaction fees income
  • Token rewards
  • Capital growth

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Benefits of our DeFi Yield farming Platform

Attractive user interface

Investors can easily access it to monitor their investments and funds. Our DeFi-yielding platforms are built with user-friendly interfaces to make the transaction process smooth.

Interoperability

The DeFi platform is highly interoperable and versatile. Some DeFi platforms stake the crypto and automatically move it from platform to platform to impart better investment deals.

Pop up notifications

Instant notifications are displayed while using this platform, and users can view the pop-ups that come during the transaction and trading phases. This option makes them engage with the platform.

Why choose us?

WeAlwin Technologies has worked with numerous DeFi platforms and has classy experience in developing great projects. As a blockchain development company, we travel the extra mile to deliver you the best product. Our DeFi yield farming services are marked for their high transparency, speed, efficiency, and incredible returns with enhanced security features.

  • 5+ years experience in blockchain
  • Customizable features
  • High standard solution
  • Happy Clients
  • Certified developers
  • Flexible business plans

Your business can be built and scaled quickly with our world-class senior developers.

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Frequently Asked Questions

DeFi yield farming is a profitable way to earn rewards by holding the cryptos in the DeFi market.So as a crypto enthusiast and investor,if you need to increase the value of your funds and earn more profits,you can create a DeFi yield platform.In the smartest way,you can win rewards and multiply the crypto value.
We offer prime benefits to enhance your yields.Attractive user interface,Interoperability,Live chat option,Pop up notifications,Reward gifts.
For measuring the return profits, the following ways can be noted.Total value locked (CTPL),Annual percentage yield (APY),Annual percentage rate (APR).
We provide our customers with easy and smooth features.Our innovative and updated technical tools make your business powerful.Projects delivered by us make clients happy and provide 100% satisfaction.We also deliver projects on time with high-quality standards.You can develop your scalable yield farming platform with us to gain more benefits.

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