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DeFi yield farming or crypto yield farming is a unique way of earning passive income through the idly laid crypto savings in your wallet. You can lend your saved crypto assets to a liquidity pool and start earning a handsome APY (Annual Percentage Yield) on your funds. It’s a lucrative opportunity for those interested in using quick and easy money-making opportunities. This is the reason behind the growing popularity of DeFi yield farming development. It enables crypto holders to lend or borrow through a DeFi platform.
Interested in getting more outputs on your crypto investments? DeFi Yield Farming Services helps in achieving and maintaining liquidity by enabling the liquidity providers to stake their assets in the liquidity pool based on smart contracts. In return, liquidity providers would get incentives. DeFi Yield Farming Platform Development can help you to become smart enough in investing your crypto money in high-yielding liquidity pools.
What Role Can A DeFi Yield Farming Development Company Play In Your Success?
DeFi yield farming development services company can help maximize your profits by creating error-proof smart contracts for simplifying the lending process and making it run on the DeFi platform effectively. Thus, it enables the users to collect incentives for depositing crypto money or tokens for enhancing the liquidity of the DeFi protocol. In simple terms, Yield farming in decentralized finance is also called liquidity mining, as retaining funds in liquidity pools helps earn rewards for making investments.
Yield farming, also referred to as liquidity mining, is a way to generate passive rewards with cryptocurrency holdings. In May, Google Trends of DeFi peaked, and the TVL also tapped all-time high of $86 billion.
DeFi yield farming development services are ideal for producing fully secured dApps (Decentralized Applications) that have business-friendly features and functionalities. Therefore, it becomes easier to manage business financial operations without involving banks, or third-party financial service providers to complete the lending & borrowing processes. As they are powered by smart contracts, it also eliminates the need of undergoing complex paperwork and fulfill legal obligations.
Want to learn more about how DeFi yield farming is benefitting modern businesses? Get the details here.
Yield Farming in Decentralized Finance Vs Staking
While discussing yield farming platform development, we can’t ignore differentiating between staking and yield farming. For an average investor, yield farming might appear to be similar to staking, but they are distinct in many ways:
- Complexity
Staking is a much simpler way of earning income by locking crypto money. On the other hand, yield farming is a complex procedure as the investor has to decide which lending platform should be used and what kind of tokens he wants to lend.If the investor chooses to yield farm on a DEX (Decentralized Exchange), it would be necessary to deposit a pair of coins in abundance, and the reward would be based on the quantity of deposits for enhancing the liquidity of the exchange. Although it’s a bit of a complicated procedure, it’s much more profitable than staking. It’s the reason why DeFi yield farming services are growing like mushrooms. - Risk Factor
There are some risks associated with yield farming. Rug pulls and bugs in smart contracts may cause a loss of investments, but this would seldom happen if the DeFi yield farming development services company programs your smart code with carefulness and accuracy. Staking is risk-free and could be done by making a minimal initial investment. However, volatility can be risky for both, staking and yield farming. - Profitability
Yield farming helps to earn greater profits if not affected by volatility. On the contrary, staking provides a steadier annual percentage yield (APY). DeFi yield farming platform development solves the purpose of earning greater profits on the investment, without losing peace of mind.
- Complexity
- Locking Period
Staking helps to earn higher APY for locking the funds for a prolonged duration. Yield farming in decentralized finance has no such requirement. - Transaction Fees
Yield farmers have to pay gas fees while switching from one liquidity pool to another, while the stakers don’t have to migrate from one liquidity pool to another, and they can avoid paying gas fees. Despite the fact that one has to pay the high cost of transactions, people are still showing great interest in yield farming platform development because they are confident about earning a better return on investment. - Security
Yield farming is done with the help of DeFi protocols that might be susceptible to cyber security risks or glitches in smart contract coding. Staking is much more secure as compared to yield farming as it is based on a risk-free consensus method. Choosing the right DeFi yield farming development company would help ensure that your smart contracts are completely free of bugs or security loopholes.
Top 6 DeFi Yield Farming Services Tools
There are countless DeFi yield farming development tools that can help to carry out liquidity mining, but here are some of the top listed tools.
Popular DeFi Yield Farming Tools
- Uniswap
- Curve Finance
- Aave
- PancakeSwap
- Coinbase
- Crypto.com
Uniswap
Uniswap is built on Ethereum, and is known to be the first and biggest decentralized exchange (DEX) in DeFi. Here, a user can deposit ERC 20 token pairs in liquidity pools to make them tradeable crypto assets. The deposited tokens will be protected by Uniswap’s smart contracts and the depositor will be able to earn a proportion of the trading fees. The huge success of Uniswap has aroused the interest of blockchain experts to do more research on the DeFi yield farming platform development.
Curve Finance
Curve Finance DEX is also supported by Ethereum. However, it’s mainly used for stablecoin trading. Traders use this particular protocol to swap various stablecoins, as it allows secure trading with minimal slippage. People interested in earning rewards on stablecoins will be most interested in Curve Finance’s yield farming options.
Aave
It’s also Ethereum based and a big platform for those interested in yield farming in decentralized finance. Anyone can join Aave to lend crypto through smart contracts. It’s also the right place for staking.
pancakeSwap
It’s best-in-class DEX built on Binance Smart Chain, and looks similar to UniSwap. However, PancakeSwap would allow depositing BEP-20 token pairs while UniSwap is the right place to deposit ERC 20 token pairs. The majority of the investors choose PancakeSwap over UniSwap because gas fees on the BSC-based DEX are far cheaper than Ethereum-based DEX. Any DeFi yield farming development company would love to build platforms like PancakeSwap & UniSwap because of their unparalleled features and functionalities.
Coinbase
It’s one of the best crypto exchanges that provide yield farming opportunities to earn decent profits. It has a simple and easy-to-use interface and supports multiple types of cryptocurrencies.
Crypto.com
is among the top-class yield farming platforms that let investors get approximately 14% APY on stablecoin investments. The platform supports more than 50 cryptocurrencies. Anyone having knowledge and experience of DeFi Yield Farming Platform Development would be amazed to know that Crypto.com not only allows paying through your crypto wallet, but you can also use a prepaid visa card to make payments. Isn’t it the most desired feature anyone would like to use?
There are many more such next-gen tools that support yield farming, but the above listed ones have gained momentum lately. The list can be beyond the scope of coverage.
Conclusion
By now, you have a fair idea of how DeFi Yield Farming Services help to earn magnificently by locking money in liquidity pools. Why not become a platform owner and allow people to make safe investments by becoming liquidity providers?
Ready to bring a change? Looking for a reliable and experienced DeFi development company? Contact the Antier team. We have rich experience in providing a wide array of DeFi solutions besides DeFi Yield Farming Platform Development.
