What is Liquidity mining?
Liquidity mining is a term used in decentralized finance (DeFi) applications where users supply liquidity to decentralized financial applications and receive rewards for doing so. In the context of Uniswap, liquidity mining refers to users (Liquidity Providers, or LPs) supplying both assets to a given trading pair market so that the protocol can execute trades.
Whenever liquidity is deposited into a pool, special tokens known as liquidity tokens are minted to the Liquidity Provider’s address, in proportion to how much liquidity they contributed to the pool. These tokens are a representation...
What is Yield farming?
Yield farming crypto can generate passive returns on holdings using decentralized finance (DeFi) protocols — but participating in it is very rarely a passive endeavor. Yield farmers often execute complex strategies, moving crypto assets between platforms to maximize liquidity mining returns. More recently, leveraged DeFi yield farming protocols have begun to issue under-collateralized loans to liquidity providers and yield farmers. Through this mechanism, users borrow crypto assets to increase exposure to risk and reward.
The rapid growth of decentralized finance (DeFi) has been...
What is the future of Defi?
Cryptocurrency’s promise is to make money and payments universally accessible – to anyone, no matter where they are in the world.
The Decentralized Finance movement takes that promise a step further. Imagine a global, open alternative to every financial service you use today — savings, loans, trading, insurance and more — accessible to anyone in the world with a smartphone and internet connection.
As an investor in the space, it has been remarkable to witness the growth and maturity of defi protocols over the last few years. This is a movement that is gaining steam in every corner of...
What is proof of stake?
Proof-of-stake is a type of consensus mechanism used by blockchain networks to achieve distributed consensus.
It requires users to stake their ETH to become a validator in the network. Validators are responsible for the same thing as miners in proof-of-work: ordering transactions and creating new blocks so that all nodes can agree on the state of the network.
Proof-of-stake comes with a number of improvements to the proof-of-work system:
better energy efficiency – you don’t need to use lots of energy mining blockslower barriers to entry, reduced hardware requirements...
Top 9 Defi Projects
1. Aave
Aave (AAVE), initiated in 2017 under the name ETHLend, is one of the original DeFi platforms on the market. Aave is a decentralized liquidity platform that allows for borrowing assets and earning rewards on deposits. It brings together lenders and borrowers in a decentralized space to allow for an equal opportunity lending system. You can also earn rewards and discounts by staking the AAVE coin on the Aave DeFi platform.
2. Avalanche
Avalanche (AVAX) markets themselves as “the fastest smart contracts platform in the blockchain industry,” while also solidifying...
© CryptoForUs. All rights reserved.